Patagonia is renowned for its consistent environmental support; each year, the outdoor apparel company gives away 1% of its profits to grassroots environmental nonprofits. Now, its new venture capital fund of more than $20 million will support eco-friendly for-profitbusinesses, focusing on energy, food, water or waste-related startups.
The investments for each business will vary from $0.5 million to $5 million, depending on the scope and needs of the business. Patagonia is looking to support companies that already earn more than $1 million annually, and ideally ones that also align with Patagonia’s vision.
“We believe in our company’s long-term vision around the environment and areas we want to make change in,” confirmed Rose Marcario, CEO of Patagonia Works. “We know there are great entrepreneurs out there with really great ideas and resources and they could be the next Patagonia. We want to invest in an eco-startup and company with the same values around the environment as us.
“Yvon and I have talked about what we can do with that cash to have influence over protecting the environment," Marcario said of Patagonia founder Yvon Chouinard. "Yvon wants to use that money to create greater change in the world. He’s not doing what some companies do, who hoard their cash or pay huge dividends.”
Patagonia continues to be one of the most forward-thinking mission-driven companies out there. The company recently developed a renewable, biorubber replacement material for neoprene and announced an initiative to source wool from its namesake region in Argentina. With unique and innovative strategies such as these and the new venture capital fund, Patagonia is proving a major force for business change.
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Published May 10, 2013 6pm EDT / 3pm PDT / 11pm BST / 12am CEST