Venture capitalists are still bullish on beauty.
Two beauty and personal-care companies have raised money in the past day. Madison Reed, a home hair color business, raised $51 million; and Billie, a women’s personal-care and shaving start-up raised $25 million.
Their fund-raises are part of a larger interest from the venture community in beauty companies. In November, men’s-care company Maapilim raised a $4 million Series A, and Sphynx, a women’s shaving and personal-care business, raised $2 million.
Madison Reed Plans Color Bar Rollout
Prestige hair-color business Madison Reed has raised a $51 million Series D round.
Existing investors Norwest Venture Partners and True Ventures led the round, Comcast Venture Partners participated, and Meaningful Partners, a new investor, also joined. The extra capital is expected to help the business expand its omnichannel strategy, including building out its product portfolio with more colors, new products and more marketing (like television advertising).
The brand is also planning to further roll out its brick-and-mortar Color Bars, which offer clients quick color services with Madison Reed products in a no-frills salon environment. The business plans to have 40 Color Bar locations by the end of 2020. Right now, it has six.
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Madison Reed is also revamping its retail strategy, signing an exclusivity deal with Ulta Beauty to sell online and in stores. The brand previously was also sold at Sephora and QVC.
The business has also hired two new executives — Brian Bouma, a veteran of 24-hour Fitness, as chief operating officer, and Carrie Kalinowski, formerly of NatureBox, as chief financial officer.
Billie Raises From Goldman Sachs Private Capital
Women’s shaving start-up Billie has raised a $25 million Series A, bringing the company’s total raised to $35 million.
Billie raised from Goldman Sachs’ Private Capital Investing Group, as well as Silverton Partners, Female Founders Fund and Lakehouse Ventures. The business plans to use the capital to grow its product lineup.
Billie was first to market with its women’s shave concept, which launched in 2017. The business aims to provide women shaving and personal-care products without the “pink tax” (or price markup) generally associated with women’s products. Similar men’s lines, like Dollar Shave Club and Harry’s, launched for men in 2011 and 2013, respectively.