The initiative, called Amazon Web Services (AWS) Pro-Rata, will connect private investors and venture capitalists to companies that use its cloud service. Amazon itself is not investing money through the program. (CNBC)
Talking point: The promise of funding through the Pro-Rata pilot is one of several incentives for innovative companies to adopt AWS early in their lifecycle, and could help Amazon maintain its lead over competing cloud services like Google’s and Microsoft’s. Amazon has previously recruited startups with perks like free trials and through partnerships with over 3,000 accelerators and venture firms. Those relationships have helped make AWS the company’s biggest money-maker, bringing in US$25 billion last year.