Amazon.com Inc. will invest in outside venture capital funds for the first time. On Wednesday, the company said that it plans to give $150 million to firms that support undervalued founders.
The online retailer has expressed its intention to invest in more than 10 funds through 2023. These funds support about 200 companies at the start of their investments.
Nick Komorous, vice president of corporate development, said the company expects a financial payback from the initiative in the future. Also, it is expected to launch the development of new products that will interest customers. In addition, the company hopes for additional capital for those who don't have access.
According to him, Amazon will appoint founders with their own executives and other resources without taking a place on the board of directors. At the same time, the opportunity for direct investment in the future will remain.