When the Target + Techstars Retail class walked into First Avenue Wednesday night, two of the 10 startups were local. That number doubled by the end of the evening, with both of the program's international startups announcing plans to move their headquarters to the Twin Cities.
StoryXpress, currently based in India, and Spot Crowd a group of entrepreneurs from Belgium, said that the companies will relocate to the Twin Cities to continue the work they started while in the retail accelerator.
Half of the Target + Techstars startups, including Minneapolis-based Local Crate, announced that they would continue working with Target in some capacity. For some this includes further pilots and trial programs, while others have already launched services with Target.
The accelerator kicked off in July. The 10 companies received training, mentorship and $120,000 in startup capital to advance their business. Participants were required to relocate to the Twin Cities for the duration of the program. Target + Techstars director Ryan Broshar said that this year's startups were selected from an applicant pool of more than 3,000.
This is the second iteration of the Target + Techstars Retail accelerator. Last year's startups went on to raise more than $35 million post-program, a record fundraising for a first-year Techstars program according to Broshar.
In 2016, another two companies, Branch Messenger and Inspectorio, moved their businesses to the Twin Cities after going through the accelerator. Branch Messenger was previously located in California, and Inspectorio in Ecuador.
What's next for the 10 retail startups from this year's class? Let's take a look at what they do and where they're headed:
Spot Crowd (previously Belgium, relocating to Twin Cities) What they do: Utilizes facial-recognition software and a global network of 12,000 "spotters" to track and prevent shoplifting.
What's next: Spot Crowd's CEO Rodrick Lindher announced at Demo Day that the startup would be moving its headquarters to the Twin Cities. Four members of Spot Crowd's team will work full-time in the company's new Twin Cities headquarters. Lindher said that he and the two other co-founders will frequently fly between Minneapolis and Belgium, and plan to spend around two weeks per month in Minnesota.
StoryXpress (previously India, relocating to Twin Cities) What they do: A platform that helps advertisers rapidly create video promotions.
What's next: StoryXpress began working with Target, Edmentum, Local Crate and other companies during the accelerator. StoryXpress plans to move their headquarters to the Twin Cities.
Air Tailor (New York) What they do: An on-demand clothing alteration and repair platform. Users send their alteration instructions to Air Tailor, then drop their clothes in the mail.
What's next: During Techstars, Air Tailor expanded their business into brick-and-mortar retailers. Customers can leave instructions with the store, which sends the clothes to Air Tailor for alterations. When the clothes are ready, customers can have them shipped to their home or pick them up at the store. Air Tailor piloted the program at Steven Alan in Tribeca. Within a month of the program's launch, the store saw a seven percent increase in sales, according to Air Tailor, which is now bringing its services to several other Steven Alan stores, along with two other high-end fashion retailers.
Shop Turn (New York) What they do: Allows customers to return items without visiting the store. The service is free for the consumer if the retailer accepts store credit.
What's next: Shop Turn is working with its Techstars mentors from Target and Macy's to pilot the program in Target stores.
Kokko (Los Altos, California) What they do: A "color accuracy for commerce" platform that helps customers match with the best color shades for their skin tone.
What's next: Kokko tested the program in area Target stores through its beauty concierge service during Techstars. The company is currently in talks with Target for multiple rollouts in other Target stores.
Find Me a Shoe (West Sacramento, California) What they do: Offers a shoe-fitting service via mobile app that helps customers find the best shoe style and size.
What's next: Find Me a Shoe added a customizable fit and style feature that lets users design their own shoes. The service is currently being used by two manufacturers, which the company did not name.
Upsie (Minneapolis, Minnesota) What they do: Upsie's app allows customers to buy, compare and track warranty plans.
What's next: At Demo Day, Upsie announced the launch of a new service called Upsie Pays, which will protect multiple devices for one monthly fee. It will also give customers the option to purchase coverage for old devices. Upsie also announced that to date it had protected more than $3.5 million worth of devices like smartphones and laptops.
Bybe (Columbus, Ohio) What they do: A mobile platform for retailers to manage alcohol promotions.
What's next: Target will begin offering incentives for its line of alcoholic products through its app using Bybe.
Savitude (Palo Alto, California) What they do: An app that helps users find the best clothes for their body type using artificial intelligence and predictive modeling.
What's next: Savitude rolled out a pilot of their program on Target's site during the accelerator. Savitude CEO Camilla Olson said that the service is officially live on Target's site, and that Savitude has agreed to sign a contract with Target to continue developing the platform for Target. Olson added that the company is in talks to roll out the same service with another company, which she declined to name.
Local Crate (Minneapolis, Minnesota) What they do: Offers a meal-kit subscription service that features ingredients sourced in and around the Twin Cities.
What's next: During Techstars, Local Crate developed a meal kit for retail stores, which will be available in 10 Target stores starting Sunday, Oct. 15. Local Crate's kits will also be available in 150 co-ops this fall.
