Beauty and VC 2022

Traditionally VC’s have stayed away from the cosmetics industry because of the high costs of entry, but with more DTC brands, a high level of acquisitions and emerging technology is causing investors to take a second look a beauty. Making now the right time for beauty VC 2022. VC isn’t right for every one and every founder but when used properly it can be a great tool.

Reasons to Raise

• You are overwhelmed by orders and cannot keep up with demand.

  • Or you just got a large contract and need support meeting that

• You want to expand into other markets

• You are doing something tech focused and your business model has:

  • low barriers to entry

  • is contingent on having lots of users

• You are first to market.

• You have some kind of IP

• You are looking to automate some of your processes

• You discovered a way to turn x dollars into 5x+

Don’t raise if...

• You don’t have a good reason to

• You don’t want to give up control of your company

• You don’t want to ever sell your company (There are types of investment vehicles that allow you to continue in your company for ever but that’s not typical VC)

• You built your company so you can live your life a particular way. Such as

  • Have more free time/Time to take care of dependants

  • You want to choose who you work with all the time.

  • You don’t want constant pressure to grow your company

Proceed with caution if...

• You founded your company based on some kind of ethical conviction

  • Investors are in the business of making money

  • Really research the firm and make sure they are aligned with you.

If you are interested in raising here are some good Resources.

US VC Valuations Report:

• more money is going to startups.

• More Vcs in earlier stages

• More IPOs

• https://pitchbook.com/news/reports/q1-2021-us-vc-valuations-report

How rolling funds and syndicates work:

• https://news.crunchbase.com/news/you-keep-hearing-about-rolling-funds-and-syndicates-heres-how-they-work/

VC Not only survived by thrived in 2020:

• How the pandemic affected VC

• https://www.axios.com/newsletters/axios-pro-rata-ec55fc8c-2439-4739-90ee-aea3d799d93c.html?chunk=0&utm_term=emshare

Cosmetic Brand M&As are at an all time high. Is the bubble going to pop?

• https://alipstickeffect.medium.com/bubble-bath-beauty-acquisitions-are-accelerating-in-pace-and-attracting-significant-multiples-is-d7fb47962842

Us based VC funds investing in beauty

• https://pitchbook.com/blog/6-us-vc-firms-investing-in-beauty

Beauty VC- VC funds that invest in the beauty space

• This article was written by Nivea accelerator.

  • They are a south Korean beauty accelerator focusing on brands a technology companies located in south Korea (or those looking to expand)

• https://nivea-accelerator.medium.com/beauty-investors-vc-firms-and-angels-to-know-4bc7aea825d7

Beauty companies are beginning to get investors attention:

• While traditionally VC’s have stayed away from the cosmetics market because of the high costs of entry. DTC and technology companies are changing this and making investors take note.

• https://news.crunchbase.com/news/beauty-cosmetics-startups-vc-investment/Beauty VC- VC funds that invest in the beauty space

10 top US VC firms investing in beauty right now:

• https://www.lastartups.com/10-top-us-vc-firms-investing-in-beauty-right-now/

What venture capitalists look for when they invest:

• if you are fundraising it is important to get the right kind of investors. Most VCs focus on technology. so be sure you find someone in the cosmetics space.

• https://www.allure.com/story/how-to-get-venture-capitalist-funding-beau…