Mubasher: As growth slows in major markets, Starbucks is funding a newly created fund with $100 million to promote companies that are developing new technology and products for the food and retail industry.

The fund, which will be managed by Tesla investor Valor Equity Partners, would allow Starbucks to join the ranks of large packaged-food firms that tapped into external sources.

The new fund aims to secure further $300 million in the next months from other investors, Starbucks said ahead of an annual shareholder meeting.

“We are inspired by, and want to support the creative, entrepreneurial businesses of tomorrow with whom we may explore commercial relationships down the road,” Starbucks’ CEO Kevin Johnson said in a statement.

The world’s largest coffee chain is the latest US company to invest in start-ups.

The biggest US meat producer Tyson Foods, established a fund called “Tyson Ventures” in 2016 to invest in businesses that are specialised in developing plant-based protein.

On a side note, Starbucks confirmed its long-term revenue and profit targets, announcing a share buyback of $2 billion, as part of its commitment to return $25 billion to shareholders over a three-year period.

By 3:46 pm GMT, Starbucks shares traded at $71.61.