By Evan Vitale
Let’s see what stories are making headlines this week in the world of venture capital.
The National has released an article “When Oil No Longer Delivers Growth, Venture Capital Can Take Over.”
Venture capital is critical to the future success of not only the UAE but also the GCC. To understand this we first need to understand the historic formula for our success – oil leads to financial capital, which leads to real estate development, which creates social and business communities that attract people. Repeat.
Even if oil prices had not collapsed, sooner or later the size of the economy would reach a level at which oil alone could not deliver growth. We have not reached a point of reckoning because oil prices halved, that only accelerated the inevitable.
You can read the rest of the story here: http://bit.ly/2leRvAi
Meanwhile, Pymnts.com is reporting that Alibaba is the lead investor for a new round of funding for Paytm.
According to a report, citing a person familiar with the matter, Alibaba is leading the $200 million round. The other investor in the round is SAIF Partners, noted the report. With the $200 million funding, Paytm has a valuation of $1.1 billion. The move on the part of Alibaba gives it a bigger presence in India’s eCommerce market, which is dominated by Amazon and Flipkart. Amazon, Flipkart and Snapdeal, which is also backed by Alibaba, have been fighting to gain the number one position in the market and are spending a lot of money to enhance their delivery capabilities and lure shoppers via promotions and discounts. The report noted that Amazon has already pledged $5 billion in India to be the leader in eCommerce. Details: http://bit.ly/2kyEq5N
Forbes.com has an informative article offering six tips for getting started in raising venture capital. Read more here: http://bit.ly/2jTTw3A