Founded By A Vietnamese Immigrant, House Of M Beauty Raises $2M From The Vietnamese American Community

For its first external funding, House of M Beauty has turned to its community.

Launched by Vietnamese immigrant Anne Nguyen Oliver in 2019, the prestige skincare brand based in Tustin, Calif., has drawn $2 million from Vietnamese Americans in the space of two months. The money is a significant step toward meeting its target of securing $5 million in funding to support distribution, marketing and merchandise efforts. Ultimately, Oliver’s big ambition is to realize a lucrative exit that amplifies the wealth of her community.

“For the majority of them, when they have extra funds, they tend to invest in real estate, and real estate has less of a return compared to a high-growth company,” she says. “We position ourselves as a high-growth company. Our goal is to get to an acquisition in the next five years. Of course, there are no promises, but there’s the projection of getting into more retailers and going international.”

As venture capital deals dried up, Oliver became convinced fundraising within the Vietnamese American community was the right move for House of M Beauty. In addition, the check sizes involved in traditional early-stage investment are often smaller than what the brand has attracted so far in its fundraising process. It set the minimum contribution at $100,000, but $300,000 has been the lowest contribution so far.

Oliver has been highly strategic in her approach to fundraising. She identified a small group of influential community leaders to reach out to initially before broadening out the scope of her fundraising. Those leaders were given an incentive to jump at the chance to back House of M Beauty. Oliver explains, “We raised on a SAFE [simple agreement for future equity] note and, with the [initial] investors, the valuation cap is $50 million at a 20% discount.” Later investors aren’t given the discount.

Six influential community leaders—Oliver describes them as doctors, lawyers and local business owners, and they’re mostly women—who came on board quickly have become ambassadors for House of M Beauty and are connecting with other community leaders to persuade them to invest in the brand. Their assistance will be pivotal to House of M Beauty hitting its target of $5 million from Vietnamese American community members.

“Our goal is to get to an acquisition in the next five years.”

“That’s worked out better for us instead of me pitching my brand one on one,” says Oliver, adding, “It’s totally different fundraising in the Vietnamese community compared to outside angel investors. With angel investors in the mainstream market, it’s very easy to get a yes or no. Within the Vietnamese community, the way that you network and handle the relationship isn’t as straightforward.”

As a preteen in Saigon, Oliver discovered beauty YouTubers—Michelle Phan was a favorite—and they sparked her love of beauty, but she never imagined she would have a beauty brand. At 15, she arrived in the United States for school. She recounts that, for her father’s “entire life, his big goal was to send his kids here for school. Growing up, he always told me the U.S. was the land of opportunity and that any dream you have would come true if you work hard enough. We didn’t have the same kind of opportunities in Vietnam, so it was very exciting coming here.”

By the time Oliver was 19, both of her parents had died, her mother from colon cancer and her father from liver cancer. “I had to learn how to survive on my own,” she says. Surviving meant holding down a restaurant job and saving up, while keeping track of beauty trends and every now and then splurging on beauty products she could afford.

After Oliver had her son, she suffered from postpartum depression. Her doctor recommended she try saffron, a mood-boosting spice that was safe for her to imbibe as she was breastfeeding, and it was hugely beneficial to her mental health. Simultaneously, Oliver’s hormonal changes had caused hyperpigmentation and skin sensitivity. She wondered if saffron could be beneficial for her skin, too, and it did help reverse the skin issues that had cropped up during and following her pregnancy. Saffron is loaded with antioxidants and antimicrobial properties.

“I think my parents are proud.”

Oliver decided that saffron, specifically premium super negin saffron hand-picked and dried the same day in Afghanistan, would be great to bottle in skincare products. She poured $75,000 into developing House of M Beauty. The hardest part was finding a manufacturer that would extract its hero ingredient in-house. House of M Beauty manufactures its products in France.

Today, it has four products priced from $54 to $98: Saffron Clean Skin Polish, Mini Saffron Miracle Serum, Saffron Miracle Serum and Saffron Silk Night Concentrate. The pandemic was a watershed moment for the brand. Its sales multiplied 10X between 2020 and 2021. Vietnamese American beauty enthusiasts began talking up House of M Beauty’s products in Facebook Groups, and Vietnamese American celebrities and influencers began mentioning it in posts.

The brand rode the momentum into spas, nail salons and boutiques. Now, it’s carried in about 200 of them. Pure Product Brokers handles House of M Beauty’s retail distribution. The brand has generated $2.56 million in sales in three years. Oliver says it’s partnering with JPMorgan Chase & Co. to guide it to an exit.

Last year, House of M Beauty broke into Nordstrom. Since its Nordstrom debut, it’s thrice sold out. This summer, the brand is slated to enter Neiman Marcus. Oliver envisions House of M Beauty in Sephora and traveling around the world in Sephora’s international stores. Along with retail expansion, the brand is expanding its assortment. A sheet mask, cleansing balm, jelly cleanser, essence, lip balm and candle are in the pipeline. Supplements are expected as well.

Busy building House of M Beauty, Oliver hasn’t taken stock of her accomplishments much, but recently when she was guest speaking at USC Marshall School Of Business, it struck her that she’s become the embodiment of her father’s idea of the American dream.

She says, “In Vietnamese or Asian culture as a whole, parents really prioritize going to school and getting a college degree. I couldn’t and for me to be able to stand in front of students getting their MBA and share the growth of House of M, I thought that was such a milestone for me, and I think my parents are proud.”