Venture capital firm Velocity Interactive Group is renaming itself Fuse Capital and has formed a strategic partnership with electronics giant Best Buy that includes the launch of a new-media fund.
The Fuse-Best Buy alliance will seek to leverage the retail outlet in order to help grow the Fuse portfolio. Fuse, run by Ross Levinsohn, has more than $1.4 billion under management.
The Best Buy partnership marks the launch of Fuse’s expansion into strategic equity management.
The fund will focus on digital media investments as a complement to Best Buy’s current digital media and technology investment activity. The companies in which Fuse and Best Buy will invest include those in the music, video and the gaming space.
“This strategic initiative is a natural extension and evolution of our capabilities, given our firm’s extensive strategic, investment and operational experience in both emerging companies and large corporations across digital media,” said Levinsohn. “As for our first partner, Best Buy is exceedingly well positioned to take advantage of the massive shifts occurring across the media and commerce landscapes.”
“This partnership is another example of how we strive to be at the forefront of consumers’ entertainment and digital lives,” said Mike Vitelli, executive vice president, customer operating groups for Best Buy.