Dallas-based retail startup Neighborhood Goods announced that it has raised $8.8 million in expanded seed funding, bringing the cumulative total in the new round to $14.5 million.
The startup also announced that it will add a second location that will open later this year in New York City. Neighborhood Goods opened its first location last year in Plano.
“Since we announced Neighborhood Goods last spring, we’ve been fortunate, probably undeservedly so, to be subject to a significant amount of excitement about—and interest in—our concept,” co-founder and CEO Matt Alexander said in a statement. “As a reflection of that, in the fall, ahead of our launch, our investors saw an opportunity to capitalize on that excitement and to accelerate our expansion plans for 2019 by driving additional seed funding.”
Two funding rounds in 2018 netted Neighborhood Goods $13.75 million.
Neighborhood Goods said that the new round was led by previous investor Berlin-based Global Founders Capital with participation from prior lead investor, Forerunner Ventures, as well as Maveron, NextGen Venture Partners, Revolution’s Rise of the Rest Seed Fund, Ground Up Ventures, Capital Factory, Michael Dubin (CEO of Dollar Shave Club), and others.
“After investing in Neighborhood Goods’ initial seed round, we were excited by the quality of brands they began to sign, in addition to the trajectory for their first opening and beyond,” Don Stalter, Investor at Global Founders Capital said in a statement. “We saw an opportunity to help Neighborhood Goods accelerate through their launch and, now, we’re very proud to see the opportunities unfolding in front of them for new brands, new locations, and more.”
In December, tennis star Serena Williams made an appearance in Plano to celebrate the launch of Serena Great, the new size-inclusive collection from her independent clothing line. At the event, Williams told Dallas Innovates that she’s believed in the concept since the beginning, and is also an investor in the next-gen department store.
Neighborhood Goods adds new board directors
As part of the financing round, Neighborhood Goods said that Stalter is joining its board of directors, along with Forerunner Ventures.
“We’ve been particularly encouraged by the early reception to Neighborhood Goods, as well as the team’s execution since launch,” Nicole Johnson, Investor at Forerunner Ventures, said. “Not only has the consumer been waiting for this retail experience, but the brands as well. With the reinvestment and assuming a more active board role in doing so, we are thrilled to help drive Neighborhood Goods toward new markets, help them continue to explore relationships with more brands, and, ultimately, continue to iterate and deliver upon this unique customer experience in-store.”
Since opening in November, Neighborhood Goods—with its ‘coworking, but for retail’ concept—has added several more labels to its list of rotating brands. The Legacy West location blends physical storefronts with e-commerce by featuring companies like Hers, A. N. Other, Hook + Albert, and Le Specs.
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