In the past In recent years, venture capitalists have cemented their stature as a reliable source of venture capital funding. The number of companies launching investment weapons has exploded and the amount of new funds has continued to rise despite the current market volatility.
Ulta Beauty, the largest chain of beauty stores in the United States, became the latest company to launch a venture capital arm this week. Prisma Ventures will leverage a $20 million fund to support start-up companies that have the potential to improve the online or in-store shopping experience for Ulta customers. Ulta’s chief digital officer, Prama Bhatt, said after years of in-house technology development, a venture capital fund seemed like the next step to fostering innovation in the company.
“If we think about our goal, which is to shape the future of the beauty landscape, it seems fitting to pursue that vision by working with startups,” Bhatt told TechCrunch.
Ulta is just the latest venture capital fund to launch this year. Consumer-focused companies including The Home Depot and Chipotle also announced funds this year, while companies ranging from drug wholesaler AmerisourceBergen to defense consultancy Booz Allen Hamilton also launched funds. These four funds alone bring $450 million to the table.