Report: Alibaba’s startup funding slashed by half after Chinese government scrutiny

Details:

• Alibaba’s startup investments slid to US$2.7 billion from the start of November 2020 to the end of February 2021, dropping from around US$6 billion during the same period a year ago.
• The figure includes acquisitions by Alibaba and Ant as well as investments in listed companies.

Context:

• The slump in investments comes after China kicked off an anti-monopoly investigation and increased scrutiny into Alibaba Group.
• In a bid to tackle issues concerning monopolistic practices, China recently finalized rules for the internet industry, underscoring the urgency of a campaign to rein in its tech giants.

Update (March 11, 3:34 pm): This article was corrected to show that Alibaba’s startup investments slid to US$2.7 “billion” from the start of November 2020, not US$2.7 “million.”