5 Best VC Funds for Female-Led Beauty Businesses
The global beauty industry continues to thrive, with almost $600 billion in earnings last year. A growing number of these businesses are female-led. Will you be joining them?
The best VC funds for female-led beauty businesses include angel investor Sophia Amoruso, Female Founders Fund, and Serena Ventures. Several other venture capital funds exist for female-led beauty businesses and celebrity angel investors.
Have you started raising capital for your beauty business? This article discusses a few of the best VC funds for female-led beauty businesses. They all have a sound track record within the industry and innovative teams guided by experienced and astute leaders, so read on and choose the one that’s right for you.
Best VC Funds for Female-led Beauty Businesses
1. Sophia Amoruso Is an Angel Investor
She was once hailed as one of America’s richest self-made women by Forbes. Sophia Amoruso made her fortune selling clothes with a touch of flair online. It’s no surprise she’s passing her success forward.
Her company, Business Class, provides a step-by-step guide to creative entrepreneurship. Her Girl Boss Foundation awards grants to women in business biannually. It focuses mainly on businesses in the fashion and beauty industries.
This is a fund founded with women entrepreneurs in mind. Anu Duggal is the founding partner, and she believes in the vast potential of women-owned businesses.
The company has invested in many since its creation. Its portfolio includes over 40 consumer-driven companies that provide beauty products, skincare, and similar services.
Many know her as the female at the top of her game of tennis. But she also has another passion. Even before moving away from the courts, she started another venture - investment.
“I invest mostly in women because I found out that women get less than 2 percent of funds raised by venture capitalists.”
It may be no coincidence that Serena Ventures has only one male among its five investors. Together they’ve taken her vision and invested in over 70 companies. These include startups and eCommerce initiatives.
However, the company’s main focus is not only funding women-led businesses. It specifically invests in ones run by women of color.
4. Celebrity Angel Investors
Serena isn’t the only famous person to branch out into VC initiatives. Many celebrities are using their net worth to help others.
They may be willing to take a chance on your beauty venture too:
Ashton Kutcher - He tops that list investing over $3.13 billion in over 50 companies. He founded Sound Ventures which focuses on technology. He also has many other investments in well-known companies and entrepreneurship fledglings.
Katy Perry - She isn’t far behind Ashton Kutcher. However, Kat Perry’s portfolio is remarkably smaller, with four companies. She invested over $1 billion in them.
Jared Leto - He loves investing in technology startups. Jared Leto has invested over $1 billion in 28 of these types of businesses but has also branched out to other industries.
Oprah Winfrey - She celebrates entrepreneurship with business investments close to her heart. These include startups that support healthy living and education. The right beauty initiative may also pique her interest.
5. Female Funds Specifically
Investors who study women-owned businesses discovered they often have higher revenues. This makes them ripe for investment opportunities.
It’s one of the reasons the following VC firms focus on female entrepreneurs:
Bumble Fund - advancing gender equality by investing in early-stage female businesses.
Gingerbread Capital - focuses on high-growth women-led businesses.
True Beauty Ventures - a VC firm focused on beauty, wellness, and personal care.
Stage 1 Fund - invests in consumer products with recent investments in beauty companies.
500 Global - once 500 Startups, the company has investments in over 28 beauty companies.
As we bring this exploration of venture capital funding for female-led beauty businesses to a close, it's clear that the industry is not only thriving but also brimming with opportunities.
As a rising female entrepreneur in the beauty industry, your dreams of launching and growing a successful business are more attainable than ever, thanks to the dynamic VC funds and angel investors who are committed to supporting and empowering women in business.
From industry trailblazers like Sophia Amoruso and Serena Williams to organizations like Female Founders Fund and dedicated female-centric VC firms like Bumble Fund and Gingerbread Capital, there's a wealth of resources available to fuel your entrepreneurial journey.
Remember, it's not just about raising capital, it's also about partnering with investors who genuinely believe in your vision and will provide the guidance and support you need to make your mark in the beauty industry.
So, gear up, aim high, and let your passion for beauty guide you toward the right investor. As you embark on this exciting journey, let the success stories of these female-led beauty businesses inspire you to dream big and make your mark on the global beauty industry.
In the end, remember that your beauty venture is not just about making an impact on the industry; it's about empowering other women, fostering diversity, and shaping a more inclusive and innovative beauty landscape. Here's to your success!