Alibaba Invests 1 Billion Yuan in Online Software Providers

On the afternoon of the 18th, Alibaba Software announced its five-year strategic plan named "123." The core content mainly includes: a plan to invest 1 billion yuan in online software service providers, with Alibaba Software contributing over 100 million yuan and the remaining amount funded by 20 VC institutions; achieving a total platform revenue of 20 billion yuan within five years; and supporting 30 software developers to gain listing qualifications within five years.

Alibaba Group Vice President and Alibaba Software President Tao Wang stated on that day that Alibaba Software would collaborate with 20 VCs on the "software interconnection platform" and recruit 3,000 to 5,000 software developers to join within five years. Additionally, this 1 billion yuan will not only be invested in software development companies but can also be invested in individuals with good ideas. Tao believed that with the introduction of the Growth Enterprise Market (GEM), the threshold for going public would significantly decrease, making the goal of 30 listed companies achievable.

In the morning of the previous day, Chang Hong, Vice President of the well-known Shenzhen VC firm Zhongkechuang Investment Group, pointed out that IT, biotechnology, and materials are the three industries most favored by venture capital over the long term. "The IT industry has always been ranked first. Jack Ma's choice to invest in this industry reflects his attention to the细分 market and differentiated competition in the software industry, which is a positive sign for the industry."