Best Buy starts digital media fund - Minneapolis / St. Paul Business Journal:

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Velocity Interactive Group, which is changing its name toFuse Capital, said Thursday that it will run the fund. The venture firm which has locations inSilicobn Valley, the Los Angeles area, India and China — said Best Buy (NYSE: BBY) is the sole limitex partner in the fund, which is meant to complement the Minn.-based retailer’s present investmentes in emerging technologies. Financia l terms of the deal aren’t being Overall, Fuse has more than $1.4 billion undefr management. The fund will focus on digital media companie s that will createthe “next generatiohn of leaders in categories such as music, games and personal media management.
” The retailer’se central business has been its big-bos electronics stores. But it also hasn’t shied away from getting involved in the interactive media functionxs that go along with the gizmos it Last year, it , which it with a $5-a-month plan that incorporatew streaming and MP3 downloads. “Besft Buy is … well-positioned to take advantagee of the massive shifts occurring across the media andcommerce landscapes,” said Ross Levinsohn, a formedr News Corp. interactive mediw executive who is a managing partner at ina statement.
Best Buy officiale didn’t immediately respond to requests for The retailer has long builg relationships withventure capitalists, mostluy those based in Silicon Valley, and has had a smalkl staff dedicated to working with investors who can tip them off to productsa and services the company migh want to sell in its stores. Best Buy used the processw to build a relationship with Sling which makes a device that allows consumerx to watch TV over the Best Buy also has taken stakese inprivate companies, including Speakeasy Inc. and Mydeo.
It used Mydeo’as video-hosting Web site to launch Best BuyVidel Sharing, a subscription-based service that allows customers to uploadr personal videos for sharing with family and friends via Web blogs and e-mail messages. Last year, Best Buy postesd job announcements thatreportedr , including one to invesy in early stage companies.