Amazon is known as the world’s largest online retail store started by Jeffrey P.Bezos. He became world’s richest person in July 2017. In the year 1994, Jeff Bezos was working on Wall Street. That time he had seen the usage of internet and quits his job at the age of 30 with an intension to start a business which runs on the internet.
That is the moment at which the idea of online retail business (E-commerce) has started. He founded the company Amazon.com. But he couldn’t able to decide which he has to sell through online. After listing the top 20 potential products that he can sell effectively through online, he had decided to sell the books because of the universal demand.
In the initial stage, Amazon was started typically as an online book selling store where the buyer can just place his order through online and get his books delivered.
In an Interview with Academy of achievements, Jeff Bezos had stated that “You know the things just don’t grow, it’s highly unusual and that started me thinking about “what kind of business plan might sense in the context of that growth?”
Quick Snapshot of the Company:
Industry: Online retailing
Annual Revenue: $135.99 billion (As on 2016)
Number of employees: 97,000
(Source – Market watch)
The timeline of Amazon’s funding:
- In the year 1994 when the company had started, initial start-up capital came out of his own funds which is near $10000
- In the same year, his parents had also contributed $245,500 to Amazon
- In August 1995, two angel investors have funded Amazon with a total of $54,408
- By the end of the year 1995, company got its funding from 20 angel investors with an amount of $46,850 each on an average for a total of $937,000
- In the year 1996, Bezos’s siblings had invested $20,000 into Amazon
- In the mid of 1996, i.e in June a venture capital firm KPCB invested $8 million which is a huge funding until such period
- In may 1997, Amazon went to the public by offering 3 million equity to raise it’s $49.1 million funds
- Again after six months, in December 1997 Amazon had raised $326 million by issuing bonds
Funding rounds through VC firms and IPO issue:
By the time when Amazon joined the online retail industry as a start-up, it has been met through many funding rounds where few of the major funding rounds has been explained by the following pyramid.
Who are the Amazon’s Major Investors?
Before the company went to the public to raise the funds, it got its seed funding through Venture capital firms. The major VC firms include
- Kleiner perkins causield & Byers
- AOL Ventures
The company’s major portfolio of investments consists of nearly 52 companies. Here are the details about the recent portfolio that Amazon had invested in.
|Jul, 2017||Amazon pay (India)||$20M / Venture (Lead)|
|Jun, 2017||Clique Media Group (CMG)||$15M / Series C|
|May, 2017||Amazon pay (India)||670M / Venture|
|May, 2017||Cheddar||$19M / Series C|
|Dec, 2016||Amazon wholesale India||$23.5M / Venture (Lead|
|Jul, 2016||Qwikcilver Solutions||$10M / Venture|
|Jun, 2016||Iconic Security||$45M / Series D|
|Dec, 2015||Housejoy||$23 M/ Series B|
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Read the funding story and investor details of “Indian E-commerce giant Flipkart” here Story of Flipkart’s funding & Its Investors