In just the past couple weeks Amazon has announced a $1 billion venture capital fund called the Amazon Industrial Innovation Fund and Home Depot has announced a $150 million Home Depot Ventures fund “to Fuel Innovation in Retail and Home Improvement”. I see both these funds as a big threat to incumbents in the B2B industry and feel this should be a wake up call to traditional players that they need to start investing into tech startups in the B2B space.
Big players like Amazon and Home Depot are aiming to disrupt B2B supply chains, erode the margins of incumbent players, and disintermediate traditional distributors from customers. These VC funds are one of the tools we’re seeing tech monopolies use to disrupt the B2B industry. For incumbent B2B businesses, I would be weary of using software and solutions backed by these VC funds whose primary goal is to advance the funders positioning in the B2B industry.
Introducing the $1 billion Amazon Industrial Innovation Fund: www.aboutamazon.com/news/innovation-at-amazon/introducing-the-1-billion-amazon-industrial-innovation-fund
The Home Depot Announces $150 Million Venture Capital Fund to Fuel Innovation in Retail and Home Improvement: www.prnewswire.com/news-releases/the-home-depot-announces-150-million-venture-capital-fund-to-fuel-innovation-in-retail-and-home-improvement-301537608.html
#b2b #amazonbusiness #homedepot
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Filed under: Winner Take All | Topics:
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B2B Distribution