Patagonia’s VC fund (named Tin Shed Ventures after the company’s humble beginnings), is looking to invest $75m in companies that can replicate their success.
Now, they’re sticking with their roots. Not just in name, but by weighing a company’s environmental impact over short-term profit.
Yes, those really are their roots
It’s not just feel-good marketing. Patagonia’s founder, Yvon Chouinard, started selling mountain climbing gear out of a tin shack.
Then, right in the midst of a business boom, he changed his core product to be less damaging to the mountain, despite it costing him almost 70% in sales.
And, 40 years later, it’s certainly paid off — Patagonia’s currently doing $800m in annual revenue.
And since it worked before…
They’re betting it’ll work again. The VC fund is investing in companies with transparent supply chains, and tracking metrics like “toxins averted,” and CO2 reduced, not just returns.
Tin Shed estimate their investments in things like buffalo ranches and textile companies saved the planet 13k tons of CO2 just this year.
But how about those returns?
The rock hugging firm hasn’t released valuations for its investments, so there’s no way of knowing if it’s working out like they hoped.
However, the fund’s managing director says their portfolio companies have a 100% survival rate, and have seen double-digit increases in valuations.