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VC funding and the Black beauty industry

Black beauty brands can face challenges in building their businesses, including finding financial support during various stages of development. Of the 213 venture capital-backed beauty companies in our research, Black brands comprise 9 percent of early-stage and only 4 percent of late-stage venture capital investments.

Venture capital firms fund Black beauty brands at lower rates and amounts than non-Black brands.

Image description:

Two exhibits are displayed side by side.

The first contains three 100% squares representing all of the money that venture capital firms have spent in funding US beauty brands as of August 2021. The three squares from left to right are labeled total, early-stage, and late-stage funding. Within each of the 100% squares, the venture capital funding is specific to Black-owned beauty brands. This is a very small share of the total funding at 8%, early stage at 9%, and late stage at 4%.

The second exhibit shows two proportional squares side by side, representing the median value of total venture capital funding raised by US beauty companies from 2011–16 in millions of dollars. Black brands have been funded to around $5e million while all others have received around $50 million.

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To read the article, see “Black representation in the beauty industry,” June 10, 2022.