Understanding Alibaba’s Snapchat Obsession

TechCrunch

[tc_dropcap]Raising funding isn’t just about “how much?” but rather “from whom?” Beyond just providing the capital necessary to keep a startup growing — or even, simply, to keep it alive — taking “smart money” can unlock relationships, open doors and more.[/tc_dropcap]

Snapchat is back in the news alongside Alibaba, which is investing $200 million as part of a new $500 million finding round.

This is not the first time that these two companies have been linked with a deal. Bloomberg last July reported that the two sides had met regarding a potential investment at a $10 billion valuation. Leaked emails from Sony — including those of Sony Entertainment CEO and Snapchat board member Michael Lynton — subsequently backed up that story, but no deal was done. Until now.

[tc_writerquote align=”right”]Alibaba missed the messaging-app race in China.[/tc_writerquote]

So why is Alibaba, the company that dominates online retail in China and held the largest…

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