The Beauty Funding Boom: Why Are VCs So Obsessed with Beauty?

It seems like almost every day there’s a new beauty brand announcing they've secured funding. Why has there been such a surge?Venture capital (VC) first took off in the tech industry in the 90s, and expanded into consumer packaged goods (CPG) in the 2010s, but why do VCs love beauty brands and why do beauty brands love them back? What is it about the beauty sector that has attracted such significant investment, and what does this mean for the future of the industry? In this episode of The Barefaced Podcast, I speak with Ultra Violette founders Bec Jefferd and Ava Chandler-Matthews about their recent $15 million raise, and what it means for their growth. I also chat with NuFace cofounder and CEO Tera Peterson, who built a cult beauty device brand without taking a cent of outside funding.We unpack the dynamics of VC in beauty, the pros and pitfalls of raising capital, and what this growing trend signals for the future of the industry.A series of graphs, visual aids, and references have been created to help narrate this story. You can access them at barefaced.substack.comYou can find Barefaced everywhere else -https://beacons.ai/barefaced This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit barefaced.substack.com