Worthington Industries Inc. has established a venture capital fund in Rev1 Ventures to invest in emerging technology companies key to innovating its business in custom steel processing.
Individual investments would range from less than $1 million to $10 million, said Michael Luh, managing director of Worthington Industries Ventures.
"I’d rather disrupt ourselves than be disrupted by somebody else," Luh said.
Rev1 is managing the private fund alongside similar funds that the Columbus entrepreneurial development and investing group manages for State Auto, Nationwide Children’s Hospital and OhioHealth Corp.
The total amount Worthington (NYSE:WOR) committed to VC is not disclosed, but adds to Rev1’s $120 million under management between its own and dedicated private funds.
"The advantage of being big is you can take some swings … that maybe a smaller competitor can't do," Luh said in an interview. "We’re also trying to stay very disciplined. We’re being very thoughtful about our investments, not just willy-nilly."
Luh was most recently vice president of strategy and innovation at the $3.2 billion public company. He joined the custom steel processor and maker of pressurized cylinders in 2013 after two decades in innovation roles at Cincinnati consumer products giant Procter & Gamble Co.
His job is to identify what technologies are best fits for the company. Rev1’s expertise is in sorting through the huge volume of opportunities and spotting compelling teams and business models.
“They’ve had a great track record," Luh said. "They have connections to the startup culture globally that we don’t have."
Rev1 and Luh already vetted some 200 startups, looking to winnow out a smaller group to start discussions. Worthington is looking for technologies in smart manufacturing, data and analytics, Internet of Things and sustainability.
"By connecting entrepreneurs with resources, markets, technologists, and manufacturing experts, we can validate, develop, and deploy market advancements in a streamlined way," Rev1 CEO Tom Walker said in a news release. "We know this model works and is why Central Ohio has become a hub for startup growth and innovation."
Worthington will look throughout North America and Europe, where the company has operations. “We’d love it if it’s in our back yard and Columbus obviously," Luh said.
Worthington Industries has been pursuing digital and technological transformation. The company has invested Rev1's general investment funds, and CEO Andy Rose is Rev1's board chairman.
Luh and Rose have talked about setting up a VC fund for seven years.
"We've got a culture very open to ideas and innovation now," Luh said. "You’ve got leadership ready and willing to look at new things."
