Alibaba (NYSE:BABA) created the Alibaba Hong Kong Young Entrepreneurs Foundation earlier in the year. The company has allotted $450 million to go into the fund in a news announcement today. The breakdown of the money puts $306 million into the Taiwanese fund, and $130 million into the Hong Kong fund.
A spokesperson for the company stated that “the fund is an attempt to help entrepreneurs reach their goals and visions.”
The funds will be used to help small businesses and startups grow and develop. Not only does the fund include cash, but Alibaba services will also be included. These services are both technical assistance and training that will help these companies boost their services while also offering a synergy between investments and Alibaba.
The company wants to help entrepreneurs that are going to sell products in Mainland China. It is expected that the companies invested in will be encouraged to use Alibaba’s e-commerce system to succeed.
Alibaba has made the fund non-profit. What this means is that the company will replenish the fund if an invested business goes under. If the company decides to exit an investment, this money will go to help other startups and entrepreneurs reach their business dreams.