INDUSTRY SPOTLIGHT

Beauty

Dive into the promising beauty industry—a space where tech and changing tastes drive innovation.

Sustainable future of beauty

The beauty industry is on the rise nowadays. Consumer appetite for sustainability and biotech, e-commerce, and tech innovations fuel market growth and investor interest. Adoption of personalized care, clean ingredients, and virtual try-ons ensures more ethical and accessible beauty products. The beauty industry is brimming with many opportunities for startups like sustainable products, inclusive offerings, mental and emotional wellness products, etc.

At Waveup, we understand very well how to leverage these untapped opportunities within dynamic and profitable industries, including the beauty sector. We provide end-to-end assistance in designing and executing growth strategies—from fundraising to M&A scouting and market entry blueprints creating.

Get more information on the beauty industry by checking our beauty market research.

1/4
25% of women spend more time and money on skincare after the Covid pandemic.

 

77%
Health and beauty e-commerce sales are set to witness a 77% growth.

Fueled by growing sustainable awareness, e-commerce, and personalized recommendations
4/10

40% of consumers prefer natural ingredients.

2/3

65% of consumers purchase beauty products online.

75%

Consumers are 75% more likely to buy with personalized recommendations.

VENTURE LANDSCAPE

Venture-backed startups in the beauty industry raised around $2.8b+ in 2021

 
With major deals covering:

  • Organic skincare
  • Appointment booking
  • DTC brands

Leading beauty investors

Write to us to know more

WAVEUP VIEW

The challenges of beauty startups

Attracting venture capital and scaling business comes with a set of challenges.

Securing investment

It’s pivotal to prove your business viability and profitability while pitching to investors. Thus, to attract the right capital, beauty startups must focus on a specific niche, implement eco-friendly practices, build a robust business model, and effectively demonstrate market demand.

Sustainability concerns

Consumers are becoming more ingredient-conscious. It results in stricter regulations (the adoption of the MCRA in 2022 in the USA, for instance) and a dilemma of maintaining quality and profitability. Thus, beauty startups should develop sustainable and high-quality products like eco-friendly packaging, cruelty-free testing, ethical sourcing, etc.

Market saturation

The beauty industry is crowded, with over 600 startups and numerous top players like L’Oréal, Unilever, and Estée Lauder. That’s why newcomers may struggle to carve out a market share and attract customers. To address this issue, beauty startups need to focus on niche markets, innovative products, and distinct value offers to stand out and outrun the competition.

How we can help

Startups
Fundraising advisory

From diligent industry analysis to storytelling and financial forecasts, we’re helping founders crystallize and structure key business fundamentals and translate them into a compelling investment opportunity framed in a winning beauty startup pitch deck.

Investors
Due diligence and portfolio support

Evaluating potential investments, conducting due diligence, and supporting portfolio companies on their new fundraising rounds.

Established companies
Growth hacking

Discovering market opportunities in the market and developing execution strategies to build actionable and scalable blueprints for growth.

WHO WE ARE

Unlocking your next stage of growth

Waveup is a leading global advisory empowering companies to fuel growth, attract investments, and secure strategic partnerships.

We turn data into business insights that drive results, helping companies excel in the competitive B2C and B2B spaces across 50+ verticals, discovering and catalizing opportunities for growth.

Our investment consulting services for beauty startups

Market intelligence

Fundraising support

Pitch decks

Financial models

Investor research

Growth consulting

Go-to-market strategies

Marketing/sales materials

Design support

Learn more

FAQs

How attractive is the industry to potential beauty investors?

The beauty industry is increasingly appealing to investors. E-commerce growth and new tech are shaking the beauty world, making the market ripe for investment.

If you are a beauty startup, how easy is it to raise funding today?

It’s relatively easy for a beauty startup to attract the necessary funds nowadays. Still, there are some significant challenges to address, like the high costs of developing and marketing beauty products (ranging from $100K to $5M) and fierce competition from the established players.

How long does it take to create a pitch deck and financial model for a beauty startup?

The time of project execution depends on its complexity and our current workload. Typically, we can finish the materials within two to three weeks, but in some cases, the process may stretch to a whole month. Thus, it’s better to negotiate time frames individually.

What are the key mistakes beauty startups make in their pitch decks?

First, VCs are willing to see a coherent and catchy narrative and intro. You must know how to grasp their attention at first sight. Plus, it’s crucial to show the viability of the market-entry strategy and business model. The information should be relevant but not overdosed with charts or tables since your presentation must spark investor enthusiasm rather than make them bored. It’s a pity, but many beauty pitch decks lack these vital aspects and, thus, fail to attract additional funding.

How competitive is the beauty market?

The beauty market is fiercely competitive, with many leading companies like L’Oréal, Unilever, and Estée Lauder, numerous startups, and constantly emerging industry trends.

What services do you provide for investors looking to invest or already investing in beauty?

Supporting investment firms, we dive deep into beauty projects, conducting thorough checks to determine their investment potential. Additionally, we back the associated fund’s businesses from start to finish with all-inclusive fundraising assistance.

Do you provide beauty M&A support?

Definitely! We are at your service whether you need to identify beauty M&A opportunities, create a CIM, or require a model for buy-side and sell-side deals.

Do you make intros to beauty VCs?

Absolutely! If your project aligns with specific criteria like round size, team composition, product, etc., we will help you contact beauty VCs. This service is included in our investor relations package, which focuses on developing a network of VCs interested in the beauty industry, preparing startups for the first meetings, ensuring post-deal cooperation, etc.

Do you have available data or research to purchase on the beauty market?

Of course! Our experts deliver tailored insights on the market, covering industry reports, competitive analysis, and beauty market research to position you ahead. Using our trusted proprietary data sources, we aim to give you a comprehensive view of the beauty ecosystem, highlighting market scale, variety, and competitive dynamics.

Which growth stage of companies have you worked with in the past?

We offer comprehensive growth and fundraising assistance to newcomers in the beauty sector, guiding them seamlessly from the initial Pre-Seed phase all the way to Series C and beyond, leveraging our network and expertise to foster success and innovation at every step.

Looking to get into the beauty industry? Reach out, and let's talk!

Whether you're looking for fundraising support, outsourced M&A advisory, growth strategy consulting, and presentation design, Waveup is your one-stop shop for that and more. Leave your email, and let's discuss your project!

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