The Supply Side: Arkade’s tech ‘greenhouse’ in Bentonville recruits tech startups

New York-based Spring Capital is behind Arkade, a new venture at Ledger in downtown Bentonville. Arkade recruits global technology startups in the retail supply chain to locate in Bentonville to make strategic business connections.

“We believe that companies in and around the retail value chain really need to physically be in Northwest Arkansas, and specifically Bentonville, to pursue their commercial target and prove that their product is worth what they claim it is,” said Matthew Paul, senior vice president of operations at Spring Capital.

He said Arkade was established to provide members with connectivity and guidance to grow their business locally. Arkade is wholly funded by Spring Capital and part of Spring’s broader portfolio of companies.

“We have had some preliminary discussions with our investor network and potential corporate sponsors about establishing financial partnerships and expect those conversations to continue to evolve,” Paul said. “Our goal isn’t just to have the companies come through a three-month program that you would see in a traditional accelerator. Our goal is to introduce them to this market and have them see the value of being here and then for Northwest Arkansas to be their initial U.S. flagship, or perhaps they would move here permanently from some other state.”

He said Spring Capital has global connections, and the goal is to look for companies that have helped solve retail supply chain problems, or provide value within the retail supply chain and introduce them to the region that has become an epicenter for supply chain innovation. Paul said given the cost to reside and locate in coastal hubs like New York City, Seattle or San Francisco, startups can find value and lower costs to commercialize in Northwest Arkansas.

Crisp, a data retail solutions provider that focuses on reducing food waste, recently relocated from New York City to Northwest Arkansas, and founder Are Traasdahl is the anchor member at Arkade and chairman of the board for the tech greenhouse venture. There will be 28 workstations and five private offices in the Arkade incubator space.

Paul said they are looking for 10 to 15 companies to sign up as members by the time the office space is finished in August. He expects the companies will require different needs for space.

“Arkade is where global innovation meets the heartbeat of American retail,” said Maren Smehagen, director of business operations at Spring Capital.

She said Arkade received great feedback when they initially sought interest from businesses within Spring’s investment network in Scandinavia.

“I think a lot of companies located outside of the U.S are not aware of the impact that this region has,” Smehagen said. “But when we start emphasizing the value that is created in NWA and the amount of impact that the companies that are based here have on the global retail value chain they are really impressed and super excited to partner with us and be in the space.”

She said there are three membership tiers for businesses to consider if they want to become a member of Arkade. The first cohort will be open for members after Labor Day.

The programming associated with membership is delivered by Endeavor Heartland and is tailored to help members grow their business. Paul said Arkade is also leveraging similar work with Endeavor Heartland and Startup Junkie and hopes to help build a pipeline of talented business innovators who call the region home.

“We have met leaders redefining logistics, founders reshaping how products get to shelves, and operators who understood that real innovation comes not just from bold ideas but from working shoulder to shoulder with others. In that mix, we see something rare: a kind community with world-class talent and the will to build a better future,” the company notes on its website.

The programming and services at Arkade range from helping companies from start to finish on vendor selection, pilot development, performance tracking and collaborative evaluation. The business segments covered by Arkade include six segments that span the entire retail value supply chain.

The first segment is waste reduction, which could be cutting costs and improving efficiency across the retail supply chain. Crisp works in food waste reduction, and Traasdahl said he joined Arkade because of the ability it gave him to network with leaders in the category. Transportation and storage innovation is another business segment within the supply chain, and includes work in cold chain logistics, route optimization and smart storage to reduce waste.

Arkade is also looking to support businesses working in food science innovation. The company said food science sparks innovation in the retail value chain by boosting product quality, ensuring dependability and meeting consumer demands.

The Arkade program also plans to support businesses in data analytics which are integrated in businesses to assist with decision-making.

Companies working in innovation that optimize product and production are also sought out by Arkade. The company said product design and manufacturing are often two of the most significant costs and challenges for any business. Technology implementation can help automate business processes, minimize hiring needs and streamline workflows.

Arkade also plans to work with companies that specialize in packaging technology. The company said innovative packaging increases the shelf life of products, cuts down on waste, and increases the volume of product that can be stored on existing shelves.

Editor’s note: The Supply Side section of Talk Business & Politics focuses on the companies, organizations, issues and individuals engaged in providing products and services to retailers. The Supply Side is managed by Talk Business & Politics, and is sponsored by HRG.