Home Depot investing in funds focused on diversity, innovation | Chain Store Age
The Home Depot will invest $10 million in venture capital funds that promote diversity, technology and entrepreneurship.
The world’s largest home improvement retailer said the investments are part of its commitment to build meaningful, inclusive and sustainable opportunities for minority-owned companies and Historically Black Colleges and Universities (HBCUs). As part of the investments, The Home Depot will work with each fund to provide feedback, mentorship, and deep industry expertise to diverse founders and entrepreneurs.
The three funds are described below.
“The future of retail lies in technology and innovation, and we’re committed to investing in diverse thought leaders who can help us disrupt our industry,” said Richard McPhail, CFO and executive VP of The Home Depot.
The Home Depot and The Home Depot Foundation have committed more than $45 million since 2017 in organizations working to improve social equity. In 2020, The Home Depot announced that it was doubling its investment to a million dollars annually for the Retool Your School program, which benefits HBCUs. The company also announced its goal to build a program to encourage its own suppliers to increase their business with diverse suppliers and expand the company’s downstream impact with diverse organizations nationwide.
“Striving to close the wealth gap and advancing education for all are two of the diversity, equity and inclusion commitments we set forward in 2020,” said Derek Bottoms, chief diversity officer and VP of associate relations at The Home Depot. “Investing in these three particular venture capital funds sets these goals into action in a significant way.”
The Home Depot operated a total of 2,298 Home Depot retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. In fiscal 2020, it had sales of $132.1 billion and earnings of $12.9 billion.