In a challenging funding environment for color cosmetics, Violette_FR has raised $5 million from a tight circle of existing backers, demonstrating their conviction that the brand could be an eventual winner when appetite for deals in the category picks up.
A filing with the United States Securities and Exchange Commission indicates the full offering was sold to three investors. Board directors listed in the filing include Anu Duggal, founding partner at Female Founders Fund, Oliver Nordlinger, co-founder and partner at Monogram Capital Partners, Brian Thorne, partner at Silas Capital, and David Olsen, managing director at Highlander Partners and CEO of RMS Beauty.
Founded in 2021 by makeup artist Violette Serrat, the social media-savvy former global beauty director at Estée Lauder and creative director for makeup at Guerlain, who has amassed more than 1 million followers across Instagram and YouTube, Violette_FR is known for chic French-inspired makeup, skincare, haircare and fragrance essentials. Bisou Balm, Bisou Blush, Lip Nectar, Boom-Boum Milk and Plume Lip are a few of its bestsellers. Priced predominantly from $23 to $68, the brand is available at Sephora, Liberty, Le Bon Marché, Mecca and Oh My Cream.
Last October, Serrat told Women’s Wear Daily the brand expected to soon become profitable and that sales were evenly split between direct-to-consumer and retail channels. This year, Violette_FR expanded its product lineup with launches such as Plume Eyeshadow and Plume Blush. Serrat has also introduced collaborations with Likhâ on a straw tote and Statement on a jewelry capsule collection. Longer term, she envisions planting Violette_FR flagship stores in cities like Paris and New York.
Effectively serving as an extension of a series B round closed in 2024, Violette_FR’s new funding will be used for working capital to support growth. The series B round was led by Silas Capital, backer of Orebella, Makeup by Mario, Rōz, YSE Beauty and Oak Essentials, with participation from Monogram Capital Partners and Felix Capital.
The size of the raise lands in a difficult chokepoint for beauty brands, generally being too big for early-stage venture capital investors and too small for traditional private equity firms, many of which are moving further upmarket in search of larger deals. “A $5 million check is the hardest check to raise in beauty,” says Ilya Seglin, managing director for consumer, retail and e-commerce at investment bank Cascadia Capital, who views the financing as a positive sign for Violette_FR because existing investors are typically closest to a company’s underlying performance.
“She’s doing a really good job building a brand for forever.”
His optimistic perspective on the brand comes in the context of a beauty industry awash in color cosmetics players searching for elusive exits. Makeup by Mario, Merit, One/Size, Rare Beauty and Kosas are among those that haven’t found a buyer so far, not to mention the swelling ranks of possible divestitures, with Smashbox, Too Faced, Make Up For Ever and Coty’s mass-market portfolio containing CoverGirl, Rimmel London, Sally Hansen and Max Factor looking to be rehomed.
Violette_FR isn’t the only prestige makeup brand considered a sounder strategic candidate attracting continued financing from existing investors. Earlier this year, Westman Atelier raised $15 million from existing investors Prelude Growth Partners and Imaginary Ventures as, according to Axios, its sale process reportedly went quiet.
The reasons for makeup’s mergers-and-acquisitions quagmire are numerous, but Seglin argues many potential acquirers question whether some of the brands currently on the market can outlast the trends driving their momentum. By contrast, he suggests Violette_FR is less dependent on fleeting beauty trends.
Referring to Serrat, Seglin says, “She’s doing a really good job building a brand for forever.”
Another reason for the limited M&A activity in makeup is that buyers have stayed on the sidelines as growth in the category has been relatively sluggish. Market research firm Circana estimates that, in the first quarter, prestige makeup sales gained 2% compared to 10% growth for prestige haircare and 7% growth for both prestige skincare and fragrance.
The conventional wisdom in beauty is that the industry cycles between periods dominated by makeup and periods dominated by skincare. Investors in Violette_FR are betting that makeup will eventually swing back into favor, creating a more welcoming environment for exits. However, Larissa Jensen, SVP and global beauty industry advisor at Circana, posits the conventional wisdom may no longer hold. Still, she emphasizes that specific makeup brands can pop despite the category’s broader malaise.
“What we’ve seen over the last few years is that there aren’t really cycles,” says Jensen. “Makeup has consistently underperformed skincare for several years.” She adds, “Really what we are seeing now is more of an opportunity for brands. Even in a softer category, you can still see that there can be significant success for different brands.”
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