Here's How Emerging Beauty Brands Are Trying To Squeeze Dollars From Tight-Fisted Investors

Although the number of beauty industry deals is creeping up—investment bank Capstone Partners estimates they increased nearly 33% from last year to 57 year-to-date as of last month—the well for early-stage beauty brand funding remains pretty dry. In light of the difficulties emerging beauty brands face securing capital in the post-ZIRP environment, for the latest edition of our ongoing series posing questions relevant to indie beauty, we asked 17 founders the following: What’s your approach to fundraising? How much are you trying to raise? Why should investors back your brand? What are the biggest challenges to raising money? How are you addressing them?

AnnRagan Kearns Founder, Medalist Skin

As the founder of Medalist Skin, my approach to fundraising is focused on finding supportive partners who not only provide capital but also offer operational and growth support. We're looking for investors, advisors and VC partners who see themselves as an extension of our team—someone who understands the unique need of athletic skincare and forecasted growth of the performance beauty space and can help us scale effectively.

We’re targeting investors who are passionate about the growing consumer interest for not only performance-driven skincare products that cater to active, on-the-go lifestyles, but female sports as a whole, and I’m connecting with them through industry networks, personal relationships, sampling and gifting of the product, and leveraging our brand’s story. We see a lot of investors who immediately relate to our product and see the white space as they either played a sport themselves or have children who are athletes and obsessed with skincare.

We’re looking to raise $1.5 million in our pre-seed round to accelerate product development, expand our marketing efforts, launch nationally in retail and grow our brand presence within the athletic and wellness space with national and collegiate sports league sponsorships and larger NIL campaigns.

Investors should back Medalist because we’ve created a brand specifically tailored for athletes and are solving the unique skincare problems they face with their active lifestyle. Medalist Skin is the first clean performance skincare line for female athletes, developed, tested and approved by Olympians and elite athletes like WNBA, NWSL players and more. We know our community because we are our community as our core team members are all former or current athletes.

The biggest challenge in raising money right now is the volatile investment environment. Although we have seen some exciting uptick of investment within the beauty space this year, female founders receive just 2% of venture capital funding in the U.S., highlighting the significant gap in access to capital for women-led startups. This statistic underscores the challenges female entrepreneurs face when raising funds, making it even more critical to find the right investors who not only bring financial support, but also champion diverse leadership and innovative ideas.

At Medalist Skin, we’re committed to changing the narrative and closing the fundraising gap, and we’re looking for partners who believe in the value of women-led businesses and can help us scale while supporting our mission to provide high-performance skincare for individuals with active lifestyles while building a supportive, empowering and engaged community of next-gen female athletes.

Forty Amsel Founder and CEO, Beyou

We’re targeting mission-aligned investors who believe in affordable, clean and effective skincare. We’re looking to raise $3 million to scale distribution, fund R&D and expand our marketing reach.

Why Beyou? We’re redefining luxury skincare by offering clinically proven solutions at accessible prices, with strong consumer loyalty and trust from dermatologists.

The biggest challenge is a cautious funding environment. To address this, we’ve focused on highlighting our proven growth like increased sales at Target and building strong investor relationships.

Yve-Car Momperousse Co-Founder and CEO, Kreyol Essence

Our current strategy focuses on connecting with private investors and private equity (PE) firms. We’re targeting investors who align with our mission and who bring not only capital, but strategic guidance and a genuine interest in sustainable growth. By networking within industry events and using our existing connections, we introduce these investors to our brand’s potential and scalability.

Our fundraising goal is $5 million to $10 million, and we believe our unique value proposition—a blend of science-backed and cultural solutions for those experiencing hair loss and strong market positioning—makes us a compelling investment.

The challenge is that investor theses change rapidly and do not always align with our timing. As a bootstrapped omnichannel brand, we focus on scaling one channel and maintaining the other in a given year. I find that the year we are scaling one channel is the year investors decide it’s not their focus. We listen to what customers want, but many investors come to that conclusion later (i.e., in 2020, after landing and scaling at Ulta, being on “Shark Tank” and having web sales soar, investors told me our rosemary mint scalp care line was not innovative enough.)

Let’s fast forward to 2024, one of the top searched products and what people are putting on the market is all rosemary mint scalp care. The brands that were financed killed it in sales. We did well, but, if invested in at the time, would have grown a lot quicker.

Christine Koppinger Co-Founder, Minu

Minu is actively fundraising to support our choiceful distribution expansion and pipeline development for 2025. Over the years, we've cultivated strong relationships, primarily within the consumer VC network. As a result, 100% of our conversations are with investors within our existing network or through warm intros. We feel that cold outreaches are not effective.

We approach every “not right now” response as an opportunity to leverage the investor's own network, continuing to build momentum and uncover additional possibilities. While we're not yet ready to raise our seed round, we know that our angel investor network is not as established as our VC connections, prompting us to explore alternative financing options as well.

Investors have shown strong interest in Minu for three key reasons:

Dermatologist-designed, proprietary IP: Minu stands out in the indie sun care market with our dermatologist-designed formulas and strong, defensible IP. Our products are backed by a team of skincare experts with deep, specialized knowledge in the field, something that is rare in the space, especially given the extensive R&D resources we maintain in-house.
Exceptional product experience: Our hero product is designed not only for efficacy, but also for sensory appeal. This commitment to an exceptional user experience is a major factor in our 36% repeat purchase rate, as the best sunscreen is the one you love to wear.
Choiceful, cohesive distribution Strategy: As a luxury, sun-first skincare brand, Minu is focused on meeting customers where they are. Our strategic retail partnerships amplify our brand story. They are carefully chosen to align with the daily lives of our target audience, whether at Credo Beauty, a dermatologist’s office, an aesthetician or a wellness spa, ensuring we’re visible and accessible at every step of the customer journey. We are excited about the opportunities ahead as we work toward expanding our presence in 2025 and beyond.

Ayssa DiPietro Founder, Miami Beach Bum

We just announced a capital raise last month. For me, this is the most difficult part operating an indie brand. Since we are launching four new retail partnerships over the next year and scaling existing partners, we have a $1.5 million seed round with $750,000 open.

I’m not well-networked in this area, so it's a lot of warm intros to early-stage VCs, but the money is more likely to come from individuals who want to get more involved in the beauty space.

Investors should back us because: 1). We are at a revenue inflection point; 2). We have clear product innovation that cuts through the noise, 3) We have been DTC first for the last five years and know who our customer is; 4). We have a gritty founder backed by an experienced industry team; and 5). Our visual branding and story are approachable and fun for the customer.

Victoria Monari Founder, Monari Skin

A really great piece of advice I got while attending the Dream Ventures accelerator by Annie Evans and Kelley Arena—this accelerator is specifically for female founders looking to raise funding successfully—is, when looking for investors, you should aim to look for “wisdom capital,” not just the capital. This advice was from a talk given by Hannah Bronfman, and it means looking for investors who can give you solid bits of advice that can propel your brand and mission forward.

This will most likely empower a brand for long-lived success. Therefore, in our fundraising approach, we are raising much-needed funding in order to launch successfully, and we are seeking knowledgeable individuals that we can build long-term relationships with that are mutually beneficial.

Monari Skin is raising $250,000 on a SAFE note with no valuation cap, but with a 20% discount. Our raise is live and powered by Sydecar, and we are currently open to hearing from new investors who are willing to learn more about our brand and what we hope to achieve.

We are on a mission to create accessible mood-boosting skincare for women to support their everyday wellness journey. Our brand has already caught the eye of a well-known retailer in the U.K., and we are getting ready to sign with them and launch our first cohort of products with them. I myself was unsure of our potential at first until the head beauty buyer of this retailer said, “We were on to a winner,” when she was referring to our brand. These words have definitely kept me encouraged in times of doubt.

The biggest challenge has been securing meetings with angels and accredited investors and securing productive meetings that lead to further talks. Still, we've met some great individuals along the way scoping for investment. So, an attitude I'm trying to adopt is, a no is just a not right now.

Investors are usually happy to hear about your progress a few months down the line, especially if you're super early in your journey as a beauty startup. I usually circle back after a couple of months to keep investors posted on our progress and to also keep us top of mind for future considerations.

Liz Folce

Founder, Nakery Beauty

We prefer to let the business stand for itself, using a strong financial picture to negotiate affordable lines of credit. Instead of raising a certain amount, we’re making sure we have a line of credit that is accessible to fund growth opportunities. Having the right funding in place allows us to move quickly.

Nakery is winning with the underserved 50-plus consumer who can’t find another brand that speaks directly to her in a language she understands about beauty and body issues at this stage in life. Nakery will grow by 50% in 2024 with EBITDA of better than 20%.

The biggest challenge is meeting near-term working capital needs while wanting to hold on to your equity. We stay very tight on operating expenses while driving growth and secure a line of credit that is both affordable and ample enough to fund the next profitable growth opportunities.

Jack Jia Founder and CEO, Musely

We believe in raising capital from a position of strength—when you don’t really need it. This ensures you remain in control, avoid desperation and secure better terms. Investors are far more willing to back a company that’s thriving and doesn’t need funding. This principle applies at every stage, including the seed stage, where founders often self-fund to demonstrate early traction.

We prioritize investors who were entrepreneurs themselves or have a strong operational background in our industry. These partners bring not just capital, but also strategic insight and practical experience. On the other hand, we avoid purely financial players or those with a solely Ivy League MBA perspective as they often lack the understanding that a great company is not built in a straight line and often make wrong decisions or recommendations at the board level.

Finally, we believe in leveraging warm introductions. A strong referral not only builds trust, but also reflects the entrepreneur’s resourcefulness, a critical quality for long-term success. Cold calls should be avoided whenever possible. If you can’t secure a warm intro, it may signal a lack of persistence or network-building ability.

Currently, we are not fundraising. Musely is in a strong financial position with substantial cash reserves and zero debt. That said, we may consider raising a significant round in summer 2025 to fuel our expansion into global markets.

Musely is the fastest-growing and largest dermatology-focused telemedicine company in the U.S., offering unique compounded medications for over 20 challenging conditions. In just five years, we’ve scaled revenue by 140X, served 800,000 patients and achieved profitability, all while transforming lives.

Our customer base—primarily women aged 30 to 90—represents an underserved demographic with high demand for effective solutions. Our products are so impactful that patients call them “life-changing,” “the holy grail” and “the only bottle I’d take to my grave.” With a $50 billion TAM in the U.S. alone, our growth potential is extraordinary.

The biggest challenge is simply ensuring the timing is right. Fundraising becomes easy when you don’t really need capital. You [should] only consider raising money when you don’t need it.

Allison Shimamoto Founder, Haiama Beauty

Haiama Beauty is a haircare brand designed for Black, brown, multiracial and multiethnic moms and kids—clean haircare for curls. We create high-potency and multiuse products by hand, using organic and non-GMO ingredients. We're on a mission to make textured haircare easy and healthy for the whole family, where the same product can be used to smooth baby’s skin and style mommy’s hair.

We are seeking to raise $250,000 in 2025 for our seed round through angel investment and crowdfunding. We’re looking for investors who are passionate about sustainability in CPG, improving access to organic healthy products, but who are also interested in providing mentorship and coaching to help us grow and scale.

It can be challenging for smaller brands like ours to secure larger check sizes from VC firms who tend to be investing more in tech. What’s worked well is getting creative, building relationships and exploring private early-angel investors.

Cece Meadows

Founder and CEO, Prados Beauty

Our approach to fundraising is centered around identifying investors who align with our values and recognize the unique perspective and market opportunity that a profitable, brown, female, minority-founded brand brings to the table. We actively seek out investors with a demonstrated commitment to diversity and inclusion and who understand the potential for significant returns in supporting businesses that cater to underserved markets.

We connect with these investors through a multipronged approach, leveraging industry networks, attending targeted conferences and utilizing online platforms that connect startups with potential funders. We also emphasize our strong financial performance and growth trajectory, showcasing our brand's resilience and potential for scalability.

While we haven't disclosed a specific fundraising target, our pitch highlights our proven profitability and the untapped potential within our target demographic. Investors should back our brand because we offer a compelling combination of financial viability, social impact and a unique market position that traditional brands often overlook.

The biggest challenge we face in raising money is the systemic bias that still exists within the investment community. Despite our demonstrated success, we encounter resistance from investors who are hesitant to invest in businesses led by individuals who don't fit the traditional founder mold.

To address this, we proactively highlight our achievements, emphasize our strong financial track record and leverage data to demonstrate the market opportunity we represent. We also actively seek out and connect with investors who are committed to breaking down these barriers and supporting diverse founders.

TITILOLAMI BELLO Founder, Ori Lifestyle

I plan to fundraise next year. I am currently thinking about raising 500,000 pounds [or roughly $630,000].

Investors should really consider my brand because it offers innovative products and education within the Afro-textured space, quality products that has seen us retain over 80% of our customers as repeat customers, a founder with a clear vision and drive, branding that connects with a wide demography and a community that we have heavily invested in and that support and feed into our development.

I am particularly looking for angel investors who can offer business expertise and networks for wider distribution. I will be using a fundraising platform.

RHODA WASSWAS Founder and CEO, Manjeri Skincare

Fundraising has been an overwhelming process for me, especially as a solo entrepreneur. For now, I’ve started with friends and family to secure some initial support, but I'm looking to outsource more of the daily operations to free up my time for pursuing investor capital.

My initial target is $100,000, which would help relieve the financial strain on my personal resources that have primarily funded the brand to date. I’ve also been exploring business grants and accelerators, but many have dissolved in the post-COVID landscape.

The growth trajectory of my brand reflects the success I’ve had in under eight months, first launching in April 2023, expanding to online marketplaces like Amazon and Beauty Bridge in July 2023, and securing my first retail partnership with Flying Solo NYC in December 2023 and expanding internationally to Flying Solo Paris in July 2024.

Investors should back my brand because I occupy a unique and uncharted niche within the body care industry. Manjeri Skincare emphasizes a holistic approach, educating customers about lesser-known cultural practices that have profound effects on the skin. This not only sets us apart from competitors, but also taps into the growing consumer interest in authenticity and sustainability.

The biggest challenge I face with raising capital is navigating the landscape of potential investors, but I’m actively networking and refining my pitch to showcase the unique value of my brand to the western market.

Emily Klein Co-Founder, Murmure Paris

We’ve been fortunate to have two consumer goods venture capital firms reach out to us. Moving forward, our strategy involves leveraging LinkedIn outreach and cold emailing to connect with angel investors who align with our vision. For our series A round, we aim to raise $425,000.

The skincare market is saturated by two categories of products: effective or aesthetic. At Murmure, we bridge the gap so customers don’t have to choose. Our key differentiator lies in our formulas. We continue to invest in R&D to bring true innovation to the market, utilizing unique ingredient combinations that others don’t.

Our biggest challenge is finding the right first partner/angel investor to kickstart this round. One of the VC firms we’re currently in discussions with has expressed their readiness to join after seeing early signs of scaling. We’re focused on gaining traction and showing steady growth, with the goal of building the momentum needed to attract the right lead investor.

Gabrielle Requena Founder and CEO, Wrinkles Schminkles

In our case for Wrinkles Schminkles, we are fully engaged in a formal process to find a strategic partner, having tasked Ankura Consulting to take our brand to market, thus Ankura Consulting has prepared our financial model and IM with three years historical data and three years of forecasts.

The data tells an impressive story of high and consistent growth, profitability and double-digit EBITDA margins and comes with a three-year plan of new products, regions and retailers, all things which strategic partners look for when investing.

The most common challenges when raising money or finding a partner usually relate to business valuations and finding a truly aligned partner. Since officially going to market, we have some reputable parties interested in our business, and we remain excited to meet them and find alignment.

Kasra Borojerdi Co-Founder, Persona Cosmetics

Our approach has been to create amazing well-marketed products that generate enough buzz in the beauty community and the good investors will find you. We’ve been fortunate enough that almost all of our conversations with investors have been this approach or by a warm intro made by someone in the middle that thinks we should connect.

That being said, to date, we have not raised any capital, but are working on some exciting big projects for 2025, which will fuel our growth and external capital will be helpful.

Raising capital isn’t easy in today’s economy, especially compared to the zero-interest days, but we feel confident because, for the past seven years, we've been all about building a brand that people genuinely love.

Our customers are loyal, our products solve real beauty struggles, and we’ve kept things sustainable with healthy unit economics that fare well in both DTC and retail. It’s this foundation that makes us feel ready to take on the next step.

Tiffany Ju Founder, Chunks

I considered fundraising a year or two ago. I'm no longer wanting to go that route. My business is a bit unique in that it is, at its core, centered around creative product development. I want to be able to take my time and do things my way and for me, that means keeping investors out of it.

I've explored other options like loans, but I'm leaning towards going back to bootstrapping, but making sure the product is really strong and community is genuinely built.

Lisa Hillyard Co-Founder and CEO, MILO Multifunctional

We are at the seed stage, so we are focused on angel investors. Having just soft-launched in Sept. 2024, we’re finding that VCs need a longer track record than just a few months to make an investment decision.

We are mainly getting intros from within our networks. We’re fortunate to be part of business communities with strong connections. Another incredible source of intros has been through other founders. The founder community has been so supportive and helpful.

We’re starting with $350,000. We want to avoid taking on more money than we need to continue proving our model. We’ve been bootstrapped so far. Being mindful of dilution is one thing, but it’s also about our desire to remain lean and scrappy. We don’t believe in taking money just to say we did. Each dollar we raise must have a clear intended purpose and a plan for eventual return.

We are building a category-defining house of regenerative brands, thinking 10 to 15 years into the future about what the state of CPG will look like and building for that future. We need long-term strategic investors who think beyond a single check or exit. Investors should back us because we're the right mix of audacious and anchored, bold enough to disrupt the status quo of beauty and personal care, but grounded in proven principles of quality, sustainability, and regenerative economics.

The DTC bubble has all but burst and many investors are disillusioned with the idea of “brand potential.” Navigating today’s climate has pushed us to rethink how we fund MILO’s vision. With uncertainty around DTC scaling and retail access along with growing investor hesitancy, proving traction has become essential.

After bootstrapping through two years of R&D and earning unanimous five-star reviews from our earliest customers, we need outside cash to take us to the next stage of our journey. Mindful of keeping a clean cap table, we have been looking for one to two strategic investors, but have noticed that there is little interest in writing big checks at our stage.

To adapt, we’ve launched a SAFE round for smaller tickets, rolling into an SPV called MILO Community Fund I. Accredited investors can commit $5,000 to $100,000, making the opportunity more accessible to values-aligned supporters while keeping a clean cap table.

Since introducing the Community Fund, we’ve seen significantly more interest than the traditional approach. This isn’t just fundraising, it’s an invitation to co-create a better future. By empowering values-driven investors who may not meet the threshold for larger ticket investments, we’re advancing MILO’s mission of regeneration and the human care movement.

If you have a question you’d like Beauty Independent to ask beauty entrepreneurs, please send it to editor@beautyindependent.com.