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Andy Jassy, chief executive officer of web services at Amazon.com Inc., speaks during the Amazon Web Services (AWS) Summit in San Francisco, California, U.S., on Wednesday, April 19, 2017.
Amazon is actually testing a completely new way to bolster its relationship with start-ups in addition to possibly bring in more capital to the ecosystem. The fledgling effort, known as the Amazon Web Services Pro-Rata Program, is actually designed to link private investors with companies which use AWS, as well as venture funds whose portfolios are filled with potential cloud customers. Amazon is actually not investing money through the program.
The Pro-Rata program is actually being run by Brad Holden, a former partner at TomorrowVentures (founded by ex-Google CEO Eric Schmidt), in addition to Jason Hunt, who are both part of AWS’s business development team focused on angel in addition to seed relationships, according to an email they sent to investors in January.
“The Pro-Rata Program is actually a completely new pilot intended to connect family offices in addition to venture capitalists for specific investment opportunities through the AWS ecosystem,” according to the email, which was viewed by SouthIndianNews.com. “Pro rata” refers to the rights investors have to put money in subsequent rounds.
AWS has built a $25 billion enterprise tech behemoth by luring big companies in addition to government agencies onto its cloud, in addition to the idea today accounts for the bulk of Amazon’s profit. Ever since getting off the ground over a decade ago by providing computing in addition to storage services for start-ups, AWS has counted on young in addition to emerging companies for a big part of its success. Start-ups bring innovation to the platform in addition to some, like Lyft, Pinterest in addition to Slack, grow up to be large enterprises with hefty technology budgets.
Previously, Amazon in addition to its smaller cloud competitors, Microsoft in addition to Google, have attracted start-up developers through promotional credits which let them get began for free before they’re even generating revenue. Amazon also incorporates a program called AWS Activate, which partners with over 3,000 incubators, accelerators, venture firms in addition to various other groups to expand use of the technology.
The completely new program is actually another effort to bring more completely new start-ups into the fold.