US-listed hardware retailer Home Depot has formed a $150m corporate venture capital (CVC) arm dubbed Home Depot Ventures to identify and back customer experience and home improvement startups.
Home Depot has already backed a number of startups such as internet-of-things software platform Afero, freight automation service Loadsmart and Roadie, the delivery service provider that was eventually acquired by logistics firm UPS. A fund, however, is a sign that that the company is looking to scale up its efforts.
“With Home Depot Ventures, we are lending our support and expertise to enable rapid scale of innovation. This is an exciting opportunity to find and scale the next big ideas in technology and retail,” said Richard McPhail, executive vice-president (VP) and chief financial officer of Home Depot.
An increasing number of companies are establishing corporate venturing units in the United States and elsewhere. CVCs took part in 19.1% of overall VC deals in the US last year, up from 11.3% nine years earlier, according to financial data aggregator PitchBook.
Mike Locker, VP of strategic business development (BD) at Home Depot, will lead Home Depot Ventures, and he will be joined by team members including director of BD and CVC Jennifer Marcus.
Founded in 1977 and formally known as The Home Depot, the company provides home improvement equipment, construction tools and related services through its more than 2,300 retail stores across its home country, in addition to Canada and Mexico.
Image courtesy of The Home Depot, Inc.
