Neighborhood Goods is announcing its Series A raise of $11 million, led by Global Founders Capital with participation from long-term investors including Forerunner Ventures, Serena Ventures, NextGen Venture Partners, Allen Exploration, Capital Factory, and more.
This financing brings Neighborhood Goods’ cumulative funding to $25.5 million across its Seed and Series A rounds; the company is expecting this amount to further grow in the coming weeks. Neighborhood Goods, which refers to itself as a new type of department store, is also announcing its third location, set to open in early 2020 on South Congress Avenue in Austin, Texas.
“It’s an exciting time at Neighborhood Goods. In Plano, we will soon more than double the number of active brands since launch, whilst continuing to drive an incredibly thoughtful, progressive, and exciting mix of events and activations in the store. Meanwhile, we’re a short time away from opening our second location at Chelsea Market in New York and, today, we’re pleased to finally share our forthcoming third location in Austin, Texas,” said Matt Alexander, co-founder and CEO of Neighborhood Goods. “Global Founders Capital has been a remarkable partner for us from the very beginning and we’re thrilled to be working with them, and all of our investors and partners, to accelerate rapidly into 2020.”
Global Founders Capital investor Don Stalter said, “At GFC, we’re investing in — and working closely with — some of the most interesting direct-to-consumer brands in the industry. As we expand our network of brands, we’re so thrilled to have Neighborhood Goods as a core element of our portfolio for them to test, assess, explore, and learn about the impact of physical retail as they grow.”
Neighborhood Goods’ third location at South Congress in Austin, Texas, will be part of a new mixed-use development, Music Lane. Neighborhood Goods will be adjacent to the first Soho House in Texas, the first Equinox in Austin, and a remarkable mix of retail tenants, including Allbirds, Lululemon, Sweetgreen, Le Labo, Reformation, and more.
“We’re thrilled to bring Neighborhood Goods’ unique approach to retail to South Congress in 2020,” commented Andrew Joblon, founder and Managing Principal of Turnbridge Equities. “Our development will be a vibrant reflection of Austin’s creative spirit and, with Neighborhood Goods as one of our largest tenants, we believe it’ll be a great complement to the project.”
Neighborhood Goods’ portfolio of brand partners continues to expand, having grown from 24 at launch in November 2018 to 42 today, including Rothy’s, Dollar Shave Club, Fossil, Cynthia Rowley, TASCHEN, and long-term mainstays like Buck Mason, Stadium Goods, Draper James, Primary, and more. 16 new brands will launch in Plano over the next six weeks to bring the total active brands to 58.
Now, as the company expands, it is pursuing locations offering a unique set of functions and features befitting different goals on behalf of different brands. In Plano, brands are able to access a sophisticated suburban market, while leveraging space to test merchandising, design, and product strategies. In Chelsea,
the space will be more blended, similar to a boutique-style layout, allowing brands to access an extraordinarily high traffic and diverse audience, as well as orienting around product testing and customer acquisition. With Austin, brands will be able to access one of the most exciting and progressive retail streets in the country.
In addition to the company’s impending physical expansion,
Neighborhood Goods is also readying an overhaul of its web experience, allowing for customers to peruse events, brands, and products across multiple locations, enabling in-store pick-up, amongst other perks, across the company’s widening physical ecosystem.
Neighborhood Goods is also readying a digital platform for its brand partners, allowing for access to real-time data, analytics, and feedback regarding their activations in the Neighborhood Goods ecosystem at any time.
The Series A financing will also significantly expand Neighborhood Goods’ store and HQ teams. For more information and brand news, please visit www.neighborhoodgoods.com.
About Neighborhood Goods
Headquartered in Dallas, Texas, Neighborhood Goods is a modern alternative to —and evolution of —the department store, co-founded in 2017 by Matt Alexander and Mark Masinter. Featuring an ever-changing selection of the world’s best brands and products, Neighborhood Goods crafts a cohesive and immersive retail and social environment for customers to explore and for brands to grow. Its first location opened in November 2018 at Legacy West in Plano, Texas.
Neighborhood Goods second location opens this fall at Chelsea Market in New York City.
