Wal-Mart Stores Inc. has partnered with RevUnit, a Bentonville-based tech firm, to establish a hub for young startups that is to be called Exchange.
The collaboration between the retailer and RevUnit will provide selected companies with free working space, mentorship opportunities and access to events that could help foster relationships between entrepreneurs and established businesses in Northwest Arkansas. The space will be located in RevUnit's new headquarters in the former Farmers Exchange building near downtown Bentonville. Space will be reserved for startups selected through an application process.
Joe Saumweber, co-founder and chief executive officer of RevUnit, said during a kickoff event Thursday night that the goal of the joint venture is to provide another outlet to support the startup community in the region. He said he believes Wal-Mart's involvement gives the project "gravity" and will help the retail giant build relationships in the fast-moving industry.
"One of the things we like to say is that it takes a village to raise a startup, but the quality of the village sometimes determines the quality of the startups," Saumweber said. "So it's all of our job to help. ... Having companies that can come in here and rub shoulders with community leaders and enterprise leaders, that's a huge advantage."
Similar opportunities have played a role in RevUnit's growth since it was co-founded by Saumweber and Michael Paladino, the firm's chief technology officer, nearly five years ago. The company, which is a digital product developer with major clients such as Wal-Mart, Virgin Hotels and Purina, now has 55 employees in offices in Bentonville, Las Vegas and St. Louis.
RevUnit's new headquarters -- which is nearly quadruple the size of the previous location -- could house about 20 small startups to hash out ideas as part of Exchange.
Randy Salley, Wal-Mart's senior vice president for retail technology, said the startups don't have to be retail-specific just because of the company's support. He added that Wal-Mart has no plans to invest in the startups that are selected to participate and that the companies won't be required to work for the retailer.
Instead, Salley said, the company sees Exchange as its contribution to the startup community by providing mentorship and other engagement opportunities with industry experts.
"We'll see what happens over time," Salley said. "For us, it's kind of this early test and learn. Let's get a toe in the water and see how we can help, and we'll see what transpires from there."
Exchange and the partnership with RevUnit is another indication of Wal-Mart's efforts to become more of a technology company under CEO Doug McMillon.
The company announced large-scale efforts to tap into emerging technologies and startups earlier this year with its Silicon Valley-based Store No 8, which is designed to identify, invent and invest in ideas that will "transform the future of commerce." Store No 8 is focusing on retail technology innovation such as robotics, virtual and augmented reality, machine learning and artificial intelligence.
Salley said he believes Wal-Mart will learn about startups through Exchange.
"One of the things that we hope to get out also is how do we engage with startups better than we historically have," Salley said. "It's not like working with Microsoft. They have different needs. ... So how do we work with them effectively without crushing them with the weight of us?"
Exchange shouldn't be considered an "end-all, be-all" for startups in Northwest Arkansas, according to Saumweber. Instead, the new venture -- which he described as a startup because Exchange and Wal-Mart will test and learn through the process -- is an additional asset in Northwest Arkansas' startup ecosystem. There are others like Startup Junkie and Grit Studios.
Jeff Amerine, founding principal of Startup Junkie, attended Thursday's open house and said RevUnit's collaboration with Wal-Mart is another valuable resource for startups in Northwest Arkansas.
"Through their work and through this kind of facility, we've got another great node and epicenter of entrepreneurial activity where the next billion-dollar business might be hatched," Amerine said.
Business on 05/13/2017