March 14, 2022

Top 7 U.S. V.C. Firms Ready to Invest in the Beauty and Skincare Industry

The beauty and skincare industry is evolving faster than ever. Skincare and beauty brands are inclusive, while consumer demand has paved the way for an increased number of cruelty-free, sustainable, and organic product lines.  

In 2018, PitchBook reported that the top 20 cosmetic manufacturers controlled 96% of traditional brick-and-mortar beauty retail channels. It shows eCommerce beauty businesses are dominating direct-to-consumer sales and subscription services, and venture funders are paying attention.  

As per a report, in 2020, a total of 250 deals worth around 2.1 billion U.S. dollars were carried out. In addition, as of September 15, 2021, approximately 1.9 billion U.S. dollars had been invested in beauty and cosmetics venture-backed startups through a total of 154 investment deals.  

Top Seven firms Seeking to Invest in Skincare and Beauty Industry

1. Imaginary Ventures  

Established in 2017, Imaginary Ventures is a consumer-focused V.C. company in New York. The firm is looking forward to investing in eCommerce space, including fashion, lifestyle, retail, and beauty.

The firm invested in Glossier, a brand with a skincare-first philosophy to focus on and celebrate organic facial features. Imaginary Ventures has invested in Bread Beauty Supply, Kosas, and Ami Colé.  

2. Forerunner Ventures

It is an early-stage venture capital firm that invests in the software, eCommerce, and retail sectors. It was incepted in 2010 and is based in California. Forerunner ventures have invested in Curology, a digital dermatology service that offers personalized skincare treatment products. The firm has also invested in Prose, Glossier, Birchbox, and Dollar Shave Club.  

3. Greenspring Associates

Greenspring Associates is a worldwide investment company based in Maryland. The firm invests in emerging and established V.C. funds and venture capital funds. Greenspring Associates has invested in Colorescience, Glossier, and SkinMedica as well.  

4. 500 Global

Founded in 2010, 500 Global is an accelerator and V.C. firm based in San Francisco. The firm makes minority seed, later-stage, and early-stage investments in startups across industries. The firm has invested 28 times into beauty and skincare companies, including Cairo’s Source Beauty, which offers beauty products from international and Egyptian brands. The firm has invested in Raw Apothecary and Bespoke Post as well.    

5. Khosla Ventures

Khosla Ventures is a venture capital company that invests in early and late-stage companies. Established in 2004, the firm has invested in NakedPoppy, a digital platform that deeply screens beauty products and maintains a list of suspected and known toxins harmful to the skin. They also test and vet products to offer curated clean beauty brands ideal for consumers.  

6. Funk Ventures

Established in 2000, Funk Ventures is an early-stage impact investing firm in California. The firm invests in the wellness, healthcare, and medical technologies sectors in Southern California. The firm has invested in Every Man Jack, a manufacturer of skincare items that offer men's affordable, simple, and high-quality grooming products.  

7. Innovation Global Capital

A San Francisco-based venture capital firm invests in beauty, fashion, and consumer technology. Established in 2013, the firm has invested in Alchemy 43 - an operator of injectable cosmetic clinics that bridges the gap between the beauty industries and medical aesthetics. Innovation Global Capital has invested in organic cosmetic brand Kjaer Weis as well.  

Final Words  

By seeing all the above capital investment companies, we can easily understand why the beauty industry is thriving. There are quite a few other investment companies that have invested significantly in this sector. It seems that the future of this sector is bright.  

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