Top 4 Venture Capital Firms in Beauty
Looking to raise venture capital in the beauty industry? Look no further.
In 2021, investments in the beauty industry hit an all-time high with a 31% increase compared to 2020 and almost $3 billion raised from venture capital alone! This is great news for you if you’re a beauty business or brand owner. The industry is receiving large volumes of venture capital investments because:
Consumer demand is astronomical;
The beauty space has evolved marvelously in areas such as quality, inclusivity, and use of technology; and
More and more beauty brands and celebrities are utilizing social media to sell their products.
If you’re looking to tap into these large investment volumes and raise good venture capital for your beauty brand, you’re in the right place. Below, we’ve listed the top VC firms in beauty that are investing in businesses like yours today. And guess what? Your beauty brand might just be their next investment!
With a history of providing inclusive support to groundbreaking innovations in beauty, it’s no wonder why Serena Ventures is at the top of our list. Serena Williams is one of the greatest athletes and Black female investors of all time. Through her VC firm, Serena Ventures, the global tennis champion has empowered a strong list of founders with revolutionary ideas that positively impact not only their industries but the world at large.
By March 2022, Serena Ventures announced having raised $111 million to invest in beauty, e-commerce, and other industries. A beauty venture that has already gained from this endeavor is Parfait, a brand that uses facial recognition and artificial intelligence to provide beauty consumers with customized wigs. Parfait has raised a whopping $5 million in funding from both Serena Ventures and another VC!
Serena Ventures does not only support businesses like this one with capital funding but also provides ventures access to an unmatched business network that they can utilize to take their enterprises to the next level.
Backstage Capital is a venture capital fund that invests in new beauty companies, especially those owned by underrepresented founders. The fund’s reason for doing this is the fact that less than 10% of all venture capital deals go to women, people of color, and LGBT founders. There is also an estimated $4 trillion unrealized in VC due to the lack of diversity. And Backstage Capital desires to change that.
In 2015, the founder of Backstage Capital, Arlan Hamilton, was the first Black, queer woman to start a venture capital firm. Hamilton herself was an underestimated entrepreneur before she started her VC firm. Thus, she has set out to help other budding yet underrepresented founders in beauty, health, and other industries by opening the door to the VC ecosystem for them.
Today, Backstage Capital has up to 250 companies in its investment portfolio and the first 100 of these companies raised $250M+ and created over 500 jobs!
Lerer Hippeau is an early-stage venture capital fund based in New York City. The VC provides post-investment support and services that address the most pressing areas of need for early-stage founders, offering them the tools and relationships that they need to build their brands and scale. It also empowers founders, CEOs, and other key managerial personalities in a business with knowledge and networking opportunities through workshops, social events, and the Lerer Hippeau annual summit.
Other vital ways in which the Lerer Hippeau platform invests in companies are through strategic talent hunting and marketing endeavors. Lerer Hippeau has over 250 companies in its investment portfolio, including beauty and fashion brands like Dia&Co, Glossier, Heyday, and Everlane.
This is the only VC on our list that caters exclusively to beauty, wellness, and personal care brands. The platform sees beauty as both a market and movement, and thus, applies decades of organizational beauty investment experience and deep industry knowledge to aid beauty brands at all stages of growth realize higher potential.
One group of beauty founders that True Beauty Ventures specifically targets is female founders as well as female funders. The VC has a firm belief that more equitable access to capital and investing in diversity have the power to create greater opportunities and deliver stronger returns in the beauty industry. This philosophy has enabled the platform to accelerate the success of more and more beauty brands, notably Winnie Harlow’s Cay Skin and Dianna Cohen’s Crown Affair.
Raise Money for Your Beauty Business Today!
When it comes to sourcing business capital in the beauty industry, many beauty brands and founders fall into the dooming trap of trial and error.
At Beauty Boss Club, we equip you with all the right knowledge and tools so that you can skip the heartaches of being an entrepreneur and secure swift and sure means to making your beauty enterprise a huge success.
To learn more about raising money for your business, browse through our DIY step-by-step templates to find the perfect guide for achieving your business goals today!