When you think of e-commerce there are a few household companies that immediately come to your mind: Amazon, Alibaba, Etsy, Ebay, and maybe even Ozon, Russia’s Amazon. But, who are the top investors in e-commerce startups that are guiding these businesses and their younger counterparts to success?
Here we look at the top 10 venture capital firms from around the world by capital invested in 2014 in e-commerce startups.
The glaring fact that stands out from this list of the top investors in e-commerce startups is the the geographic representation of those who made it on the list. While 5 of the venture capital firms are based in the United States (Tiger Global Management and Morgan Stanley in New York & Iconiq Capital, Accel Partners, and Sequoia Capital in California), 5 come from other countries around the world, including a couple of surprises.
The 2 biggest surprises are Digital Sky Technologies (DST) based in Moscow and Naspers, based in Cape Town in South Africa, each of which invested more than $2 billion to place them at an impressive second and fourth, respectively, among the top investors in e-commerce startups. T
he reason for the high value of their investments is that these firms participated in large funding rounds like FlipKart’s $1 billion Series G and $700 million series H and Koudai’s $350 million Series C.
The remaining 3 top investors in e-commerce startups that are based outside of the United States are Sofina (based in Belgium), Greenoaks Capital (based in the United Kingdom), and the Government of Singapore Investment Corporation. Each of these firms invested more than $1 billion in e-commerce startups in 2014.
The percentage of shopping that is done online increases nearly every year.
At the same time, it’s also a fact that most shopping is still done offline. For example, only 44% of all the holiday shopping in the United States in 2014 was done online. And the US is one of the countries with the highest online shopping rates. This shows that there is still a huge business opportunity to continue to drive up online shopping. And these top investors in e-commerce startups are betting their money on that.