Innovation Department

Innovation Department operates as both a venture studio and an investment firm. It incubates its own consumer brands internally while also making direct seed and early-stage investments in external startups. This hybrid model allows the firm to actively manage operations and strategy for the companies it creates, rather than functioning solely as a passive financial investor.

The firm was co-founded by Alex Song and Colin Darretta. Alex Song previously worked as an investment analyst at Pershing Square Capital Management, the hedge fund led by Bill Ackman. Colin Darretta is a former investment banker at Goldman Sachs. Both founders are members of the Forbes Business Council.

Innovation Department focuses on digital-native consumer brands, primarily in e-commerce, wellness, and pet care. Known internal builds include Finn, a pet wellness brand, and WellPath, a nutritional supplements company. The firm targets early-stage through growth-stage opportunities that can scale through direct-to-consumer digital channels.

Innovation Department is structured as a hybrid, combining elements of a venture capital firm and an operating company. It differs from a standard VC because it originates, builds, and manages its own brands directly through an internal studio. This operator-first approach means the firm's team is involved in day-to-day brand strategy, not just capital allocation.

The firm has demonstrated exits through acquisition. In 2021, Boosted Commerce, an acquirer of e-commerce brands, purchased WellPath from Innovation Department. The firm's in-house studio model allows it to nurture brands to a stage where they become attractive acquisition targets for aggregators or larger consumer platforms.