Introduction
In April 2022, Amazon launched the Amazon Industrial Innovation Fund with a $1 billion investment aimed at supporting startups working on logistics, supply chain optimization, and customer fulfillment. The fund has been actively investing in nearly a dozen U.S. and Israeli startups over the past two years, with an undisclosed portion of its funds allocated to these investments. In an exclusive interview with TechCrunch, the fund’s new head, Franziska Bossart, shares insights into Amazon’s plans to expand geographically and explore new areas like generative AI.
The Fund’s Objectives
The Amazon Industrial Innovation Fund was established to support startups that can help Amazon improve its logistics and supply chain efficiency while enhancing customer experience. The fund aims to build upon Amazon’s previous investments in AI and robotics, which have led to significant improvements in its operations. These include the introduction of robotic arms for repetitive tasks and automation vehicles for transporting larger items.
First Tranche of Investments
In 2022, the fund invested in five startups developing robotics and wearable technology that enhances safety in Amazon’s fulfillment centers. Despite a slow start with reportedly only $110 million invested in its first year, the pace has picked up since spring 2023 with investments in Veo Robotics, Flymingo, CoreTigo, and others.
Expanding Geographically
Bossart highlighted Amazon’s plans to expand geographically through the fund. This includes exploring opportunities in new regions where the company can invest in innovative technologies that support its growth. The fund’s global reach will enable it to tap into emerging markets and foster innovation worldwide.
Generative AI: A New Area of Exploration
In addition to expanding geographically, Amazon is also looking to explore new areas like generative AI through the Industrial Innovation Fund. This technology has significant potential for improving efficiency in logistics and supply chain management. By investing in startups working on generative AI, Amazon aims to stay ahead of the curve and leverage its capabilities to drive business growth.
Not Commercialization-Focused
While the fund’s investments are not tied to commercialization, Bossart emphasized that the company is experimental at heart. This means that the Industrial Innovation Fund will continue to explore innovative technologies with potential for long-term growth, even if they don’t directly contribute to Amazon’s current business model.
Other Investment Tools
Amazon has a history of seeking out and backing companies developing new technology, products, and services critical to its mission. In 2020, the company launched a $2 billion Climate Pledge Fund to invest in sustainable technologies and services that will help it reach its commitment to be net-zero carbon by 2040.
Conclusion
The Amazon Industrial Innovation Fund represents an important step in the company’s efforts to drive innovation and growth through strategic investments. With a focus on expanding geographically, exploring new areas like generative AI, and supporting startups working on logistics and supply chain optimization, the fund is well-positioned to help Amazon achieve its business objectives.
About the Author
Kirsten Korosec is a reporter and editor who has covered the future of transportation from EVs and autonomous vehicles to urban air mobility and in-car tech for more than a decade. She is currently the transportation editor at TechCrunch and co-host of TechCrunch’s Equity podcast.
Related Topics
- AI
- Amazon
- Robotics
- Transportation
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