The budding venture studio being built inside M13 has signed PepsiCo as its first new corporate partner.
Through the deal, PepsiCo has agreed to bankroll the first founder-in-residence program from the New York and Los Angeles-based firm, which poached former Techstars Los Angeles managing director Anna Barber to lead its new initiative.
The initial M13 Launchpad program will leverage PepsiCo executives and advisors to take entrepreneurs-in-residence on a 12-week long program in ideating and launching a health and wellness-focused startup.
“Today there is a wealth of data available to consumers about their own health, and the movement toward home testing …
When it first launched nearly three years ago, Fifth Wall had a vision of leveraging capital limited partners from across the real estate development and construction business to back the technologies the industry needed most.
That early vision resonated so well, that the firm has grown from managing one fund of $212 million to holding roughly $1.2 billion in assets under management. It has also come to the realization that the investment vehicles they’re currently managing have one huge blind spot — climate-related technologies.
With that deficit in mind, the firm has set out to raise a new climate-focused investment vehicle with …
Swell Energy, an installer and manager of residential renewable energy, energy efficiency and storage technologies, is raising $450 million to finance the construction of four virtual power plants representing a massive amount of energy storage capacity paired with solar power generation.
It’s a sign of the distributed nature of renewable energy development and a transition from large-scale power generation projects feeding into utility grids at their edge to smaller, point solutions distributed at the actual points of consumption.
The project will pair 200 megawatt hours of distributed energy storage with 100 megawatts of solar photovoltaic capacity, the company said.
Los Angeles-based Swell …
A-Frame, a Los Angeles-based developer of personal care brands supported by celebrities, has raised $2 million in a new round of funding led by Initialized Capital.
Joining Initialized in the round is the serial entrepreneur Moise Emquies, whose previous clothing lines, Ella Moss and Splendid, were acquired by the fashion holding company VFC in 2017.
A-Frame previously raised a seed round backed by cannabis dispensary Columbia Care. The company’s first product is a hand soap, Keeper. Other brands in suncare and skincare, children and babycare, and bath and body will follow, the company said.
“We partner with the investment groups at the agencies,” said company founder and chief executive, Ari Bloom. “We start interviewing different talent, speaking with their agents and their managers. We create an entity that we spin out. I wouldn’t say that we compete with the agencies.”
So far, the company has worked with CAA, UTA and WME on all of the brands in development, Bloom said. Two new brands should launch in the next couple of weeks.
As part of the round, actor, activist, and author Hill Harper has joined the company as a co-founder and as the company’s chief strategy officer. Emquies is also joining the company as its chief brand officer.
“Hill is my co-founder. He and I have worked together for a number of years. He’s with me at the holding company level. Identifying the opportunities,” said Bloom. “He’s bridging the gap between business and talent. He’s a part of the conversations when we talk to the agencies, managers and the talent. He’s a great guy that I think has a lot of respect in the agency and talent world.”
Initialized General Partner Alda Leu Dennis took point on the investment for Initialized and will take a seat on the company’s board of directors alongside Emquies. Other directors include Columbia Care chief executive, Nicholas Vita, and John D. Howard, the chief executive of Irving Place Capital.
“For us the calculus was to look at personal care and see what categories need to be reinvented because of sustainability,” said Bloom. “It was important to us once we get to a category what is the demographic opportunity. Even if categories were somewhat evolved they’re not all the way there… everything is in non-ingestible personal care. When you have a celebrity focused brand you want to focus on franchise items.”
The Keeper product is a subscription-based model for soap concentrates and cleansing hand sprays.
A serial entrepreneur, Bloom’s last business was the AR imaging company, Avametric, which was backed by Khosla Ventures and Y Combinator and wound up getting acquired by Gerber Technology in 2018. Bloom is also a founder of the Wise Sons Delicatessen in San Francisco.
“We first invested in Avametric at Initialized in 2013 and he had experience prior to that as well. From a venture perspective I think of these all around real defensibility of brand building,” said Dennis.
The investors believe that between Bloom’s software for determining market preferences, A-Frame’s roster of celebrities and the company’s structure as a brand incubator, all of the ingredients are in place for a successful direct to consumer business.
However, venture capitalists have been down this road before. The Honest Co. was an early attempt to build a sustainable brand around sustainable personal care products. Bloom said Honest provided several lessons for his young startup, one of them being a knowledge of when a company has reached the peak of its growth trajectory and created an opportunity for other, larger companies to take a business to the next level.
“Our goal is a three-to-seven year horizon that is big enough at a national scale that a global player can come in and internationally scale it,” said Bloom.
