When Alibaba was preparing to go public last year, VCs were already lining up in Hangzhou waiting for employees who were selling their stocks in the IPO to fund their own startups. If any mid-level managers from Aliababa wanted to start new businesses, it wouldn’t be a problem to find investment. Even their colleagues can become angel investors.
Who said it: Annabelle Long, Bertelsmann China Corporate Centre Managing Partner
In Context: Ms Long who works at the venture capital arm of Germany’s Bertelsmann Group, says that former employees of Alibaba, Tencent and Baidu are creating the next generation of startups in China with a little help from VCs. She says Bertelsmann has already invested 40 Chinese startups, including Mogujie, a social e-commerce company founded by a former Alibaba employee. These are not clones of other billion dollar startups defined for China, the way many startups were a few years, rather this new breed exhibit unique business models, according to Long. China’s tech sector raised USD 7.2 billion in private funding deals last year, according to the report. (Image Source: Bertelsmann Asia)
Where we found it: WSJ’s Digits blog