Dive Brief:
- REI Path Ahead Ventures, the retailer’s investment fund targeting entrepreneurs of color, is accepting applications for the second year of its Navigate accelerator program until March 12, the company said in details emailed to Retail Dive. The $30 million fund targets companies in the activity or outside industries, including footwear, clothing, gear or consumer packaged goods.
- As part of the program, participants will receive a $25,000 equity-free grant, mentorship and access to REI’s production, distribution, marketing services and other resources, according to the company’s website. They will also be able to network with partners within and outside of the outdoor industry, as well as other entrepreneurs.
- The program serves companies earning between $75,000 and $2 million in revenue with at least one Black, Indigenous, Latinx, Asian American or Pacific Islander founder. The founder of color must also have at least 20% or more in equity and hold an active leadership role.
Dive Insight:
REI’s accelerator program is entering its second year.
In July 2022, REI Path Ahead Ventures announced its first cohort, a group of six startups creating products ranging from eco-friendly and size-inclusive gear to biodegradable lip balm. In addition to offering equity-free grants, REI’s Navigate program offers participants the opportunity to sell their products in its stores or enter into a partnership or sponsorship with the retailer, per its website. REI does not require brands to sell exclusively through its stores.
Launching an accelerator to cultivate the next generation of brands is an increasingly popular strategy in retail, with a variety of companies offering resources to young brands to help their companies grow. Beauty has been a particular focus point for these efforts.
Last June, Ulta began accepting applications for its MUSE Accelerator, which supports beauty entrepreneurs of color. Later that summer, Walmart selected five emerging beauty brands for its Walmart Start accelerator program, including perfume, nail and hair care startups. In a similar move, Sephora also chose seven beauty brands for its incubator program, which offered mentorship, grants, investor networking and a slot to sell products in Sephora stores, in December.
But as REI devotes resources to its accelerator, the retailer is also cutting its workforce. Earlier this month, REI announced that it laid off more than 150 staffers at its corporate headquarters, reducing its employee headcount by less than 1%. The company provided severance packages, vacation time payouts and four months of COBRA healthcare coverage to laid off workers.
via https://www.aiupnow.com
Tatiana Walk-Morris, Khareem Sudlow
