Zoom launches $100 mln fund to invest in apps using its technology

Small toy figures are seen in entrance of Zoom brand on this illustration image taken March 15, 2021. REUTERS/Dado Ruvic/Illustration/File Photograph

Zoom Video Communications Inc (ZM.O) on Monday stated it has created a $100 million fund to put money into startup software program corporations that construct apps utilizing its know-how.

The video conferencing firm has change into a family title throughout the pandemic as companies and colleges shifted to its platform, together with rival platforms resembling Microsoft Corp’s (MSFT.O) Groups and Cisco Methods Inc’s (CSCO.O) Webex.

Zoom Chief Monetary Officer Kelly Steckelberg advised Reuters that the fund will make investments of between $250,000 and $2.5 million into corporations constructing “Zoom Apps” that plug into the corporate’s video conferencing software program so as to add new options to it.

Whereas established companies resembling Salesforce.com Inc (CRM.N) have Zoom apps that may, for instance, show info from company programs for discussions throughout gross sales conferences, Steckelberg stated Zoom needs to encourage builders to create new features like digital white boards for sketching concepts. She stated that the fund may even be open to corporations resembling telemedicine app suppliers or convention room {hardware} makers that need to faucet Zoom’s cloud-based video programs.

Steckelberg stated the fund can be run from Zoom’s stability sheet, moderately than as a standalone enterprise capital entity, and won’t search to take board seats within the corporations it invests in.

“It will actually assist put money into builders at early levels and get early market traction,” she advised Reuters in an interview. “It’s positively on the strains of being a strategic investor.”

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