Coffeehouse chain Starbucks provided $100m for US-based investment firm Valor Equity Partners’ Valor Siren Ventures I fund yesterday as the vehicle’s cornerstone investor.
The fund has a target size of $400m and will seek the remaining $300m from additional strategic partners and institutional investors over the coming months. It is focusing on startups working on technologies, products and services in the food and retail sectors.
Starbucks’ commitment to the fund is the first time it has made such a move and comes as it recognises the increasing importance of both verticals for its core business. The corporate will also explore direct commercial arrangements with the fund’s portfolio companies.
Kevin Johnson, president and chief executive of Starbucks, said: “We believe that innovative ideas are fuel for the future, and we continue to build on this heritage inside our company across beverage, experiential retail and our digital flywheel.
“At the same time, and with an eye toward accelerating our innovation agenda, we are inspired by, and want to support the creative, entrepreneurial businesses of tomorrow with whom we may explore commercial relationships down the road.
“This new partnership with Valor presents exciting opportunities, not only for these startups, but also for Starbucks, as we build an enduring company for decades to come.”
