On Monday, Zoom Video Communications (NASDAQ: ZM) announced a $100 million fund dedicated to investing in startup software applications that rely on their technology.
The fund plans to invest around $250,000 - $2.5M into each startup, where the primary goal is for software companies to create new features and functionalities that provide Zoom users with more ways to use the platform, as well as adding more connections to different applications for Zoom.
Zoom currently provides various developer tools which allow for applications to be developed within the platform, and the company plans on providing additional resources and connections within Zoom to help startups build and distribute their products.
Kelly Steckelberg, CFO of Zoom, stated that such investments were part of a strategy for potential future acquisitions as Zoom is looking to extend beyond being just a video meeting platform.
The platform has aimed to increasingly integrate itself into the working lives of its users, especially as competitors such as Microsoft Teams and their easy integration with Office applications become more of a threat to the company.
The fund is hoped to help users collaborate even more seamlessly on Zoom, as well as provide entrepreneurs with adequate seed funding to grow their software as Zoom continues to evolve.