Inside Target's City Center offices, the sound of hammers and drills are a frequent reminder that the retailer is in the midst of some big changes. Among them is that the company's Minneapolis headquarters will soon become a temporary home for 10 retail start-ups as part of the company's partnership with Techstars, a respected accelerator program.
The six-month application window closed last month. And the results were impressive: more than 500 start-ups applied to be part of the inaugural class, including firms from 45 countries with ideas that ranged from connected toys to virtual fitting rooms. Ryan Broshar, a prominent figure in the Twin Cities start-up scene who is the managing director of Target's Techstars program, and West Stringfellow, the Target executive who founded the program, are now going to help pare it down to the final 10, who in June will move in for the 13-week program.
In the meantime, Target is building out an 8,000-square-foot space to house the start-ups. As they walked around the space, Broshar and Stringfellow pointed out some highlights, such as the wall that mentors and investors will sign when they visit and the open space in the middle that will be filled with desks and couches. Start-ups will be able to get some more privacy in eight conference rooms being built.
While they were at it, Target decided to relocate its innovation team to sit next to the Techstars program. Although they will be separated by glass walls, they will share some common areas such as a kitchen and some hangout areas they hope will lead to some natural, spontaneous relationship-building.
"It's a productive collision that you wouldn't get if you were off site or had to schedule a meeting," said Broshar. "That's going to be huge."
It's a space, Stringfellow added, that the start-ups won't have to feel pressure to move out of right away after Demo Day at the end of the program, scheduled for Sept. 20 at Orchestra Hall. After all, he noted that one of the purposes of the accelerator is to keep some of those start-ups in the Twin Cities after it's over.
"The extent that we give them more time to find their feet and their groove here, the better for them and the city," he said.
Q: So the deadline for applications was last week and more than 500 start-ups applied. Is that about what you were expecting?