Neighborhood Goods, a startup that seeks to redesign the traditional department store experience, has raised a seed round of $5.75 million led by Forerunner Ventures. The funds will be used to help the company open brick-and-mortar stores.
The company plans to open its first location, a 13,000-square-foot store in Plano, Texas this fall. The store would house 15 brands on a revolving basis. The layout is designed to allow participating brands to create their own “activations” that highlight the product and company aesthetic. It will also have a restaurant and bar, and communal spaces that could be used for things like speaking events or art installations.
“At Neighborhood Goods, we’re creating something more social and communal around an ever-changing landscape of products,” said CEO Matt Alexander, in a statement. “Neighborhood Goods ostensibly takes the polish and approachability of the typical department store, but combines it with the dynamism and community of a pop-up store or pop-up marketplace.”
Alexander also noted that technology will play a big role in the experience — the company unveiled an iOS app designed to allow customers to learn more about the brands, text Neighborhood Goods staff and make purchases.
Other investors in this round include Maveron, CAA Ventures, Global Founders Capital, NextGen Venture Partners and Revolution’s Rise of the Rest Seed Fund. Individual investors such as Michael Dubin, Co-Founder of Dollar Shave Club, also participated in the round.