The fund, named eBertelsmann, will be aimed at technology companies in the media industry.
"The new fund will aim to spot trends early and develop or acquire new businesses that are relevant to Bertelsmann," said Bertelsmann Chairman and CEO Thomas Middelhoff in a statement.
Bertelsmann, Europe's largest media company, is not the first company outside the venture capital industry to step up its investments in an effort to increase profit and stay on the cutting edge of developing technology. Two British companies—tech trade publisher United News and Media and marketing conglomerate the WPP Group—also manage venture capital funds.
"Everyone wants to emulate Intel, which has very successfully invested in start-ups that have prospered and therefore grown the market, increasing demand for Intel's products," said Jason Purcell, chief executive at First Stage Capital, a company that introduces private equity firms to young companies.
LIVE NATION POSTS (ANOTHER) RECORD QUARTER
More butts in seats than ever before. (5/3a)
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THE NEW UMG
Gosh, we hope there are more press releases.
TIKTOK BANNED!
Unless the Senate manages to make this whole thing go away, that is.
THE NEW HUGE COUNTRY ACT
No, not that one.
TRUMP'S CAMPAIGN PLAYLIST
Now 100% unlicensed!
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