Two years ago, Silver Lake, the private equity firm specializing in technology firms, hit the jackpot when Alibaba Group went public. After investing $500 million into an early Alibaba, Silver Lake saw its asset grow to a valuation of $5.1 billion dollars within 3 years. After its first multibillion dollar payday from the Amazon of China’s success, Silver Lake is now seeking another jackpot by investing in Koubei.
FORD & ARGO AI TEAM UP
On Friday, February 10, auto manufacturing giant Ford announced that it plans to invest $1 billion in Argo AI, an artificial intelligence startup to develop a system for its self-driving car set to be released in 2021. Ford is a global automotive and mobility company based in Michigan with over 200,000 employees and 62 plants worldwide. To expand its current business model of designing, manufacturing, marketing and servicing a full line of vehicles, Ford is aggressively investing in electrification, autonomy, and mobility.
2017: THE YEAR OF THE IPO
With more companies reaching “unicorn” status, many investors are patiently waiting for an opportunity to invest in these burgeoning startups. But as more venture capital funds are created, startups are feeling less pressure to go public. After all, when there are abundant sources of capital coming from private firms, why subject yourself to the scrutiny of public markets? In fact, this shift has dramatically changed the way startups search for capital.