Alibaba's IPO is set to have a big impact be on U.S. tech M&A deals and future listings from venture-backed China startups on Wall Street.
Referred to as the WalMart of China for its heft, the public listing of Alibaba will give it a huge treasure chest to acquire more U.S. tech startups and possibly write $5 billion to $10 billion checks, says venture capitalist Nazar Yasin of Rise Capital. Since 2013, Alibaba has invested in nine U.S. tech startups in deals valued at $968 million, according to investment banker David Williams.
VC Jay Eum of Translink Capital, which has seen three of its portfolio companies (Peel, Tango and Quixey) get invested in by the Chinese e-commerce giant, says he has been "super-impressed" by Alibaba as a strategic investor. He pointed to fairly generous deal teams and alignment with management to mutual benefit as two advantages.
The IPO of Alibaba, predicted to be the biggest in the tech sector, could lead to many more venture-backed Chinese startups to go public on Wall Street. This year, China IPOs have rebounded to 10 after a two-year slump.
See Silicon Dragon Talk, Sizing Up Alibaba.
