US-based outdoor clothing company Patagonia’s $20 Million & Change fund was chosen as Best Social Impact Venture for its breakthrough vision of venturing as a route to change in the areas of clothing, food, water, energy and waste.
In a sign of how seriously some companies are taking corporate venturing, Patagonia reorganised its holding company and put the new fund at the centre of its communications on the topic.
When the business said in May last year it was setting up 20 Million & Change, the fund was described by Patagonia founder Yvon Chouinard as “an internal fund to help like-minded, responsible startup companies bring about positive benefit to the environment”.
Chouinard went on to give a far-reaching vision of why he was shaking up the company and putting everything under the holding company Patagonia Works.
“With the launch of this fund, we have reorganised Patagonia and our other businesses within a new holding company called Patagonia Works,” Chouniard said. “While most holding companies are about diversification, Patagonia Works is dedicated to a single cause – using business to help solve the environmental crisis.“
Rose Marcario, who has been chief operating officer and chief financial officer of Patagonia’s apparel company, is taking on a new role as president and CEO of Patagonia Works.
“Rose has been instrumental in tripling profits for our company. We now want to apply her business acumen and keen sense of social and environmental responsibility to new companies in five critical areas – clothing, yes, but also food, water, energy and waste.”
Chouinard said the fund would help entrepreneurs and innovators succeed in “working with nature rather than using it up”.
In April Patagonia announced that $20 Million & Change had invested in the series A round for CO2Nexus, a company that developed a method of processing textiles and garments using liquid carbon dioxide but no water, which consumes less energy and generates very little waste.
Marcario said: “Quite simply, processing textiles and apparel requires huge amounts of energy and water – and both are in crisis. CO2Nexus is a great fit for $20 Million & Change – it is a young company using business and innovation to bring about positive benefits to the environment. Patagonia is proud to invest in their success.”
Winner decided in association with our corporate social impact investing report partner Volans.