Patagonia, a US-based clothing retailer, has launched a $20m corporate venturing fund to back companies that share its environmental values in five areas: clothing, food, water, energy and waste.
The $20 Million & Change fund will invest between $500,000 and $5m for minority and/or majority stakes in early-stage companies that have at least $1m in revenue or value.
Portfolio companies will also have help in sourcing materials, manufacturing, and selling products.
Rose Marcario, former chief operating officer of Patagonia and who will head the fund, told news provider Bloomberg Businessweek: “We’ve had a great five years – we basically doubled the company, and have cash on the balance sheets.”
Patagonia has diversified beyond selling outdoor clothes into organic and sustainably sourced food and publishing books and media projects with an environmental focus. The company has also pledged to avoid buying oil that comes from Canada’s tar sands. In 2002, Yvon Chouinard founded 1% for the Planet, a global network of businesses that donate 1% of sales to the environment. It has 1,400 member companies in 44 countries.