How Black-owned beauty brands find funding

Crentsil and Bronfman add that the new normal requires Black beauty brands to present high returns and numbers, and strong product sell-throughs and retail traction, at a minimum. They must, most importantly, also showcase innovation or provide a solution to either a long-standing or an emerging concern that’s unique to Black consumers. “If Black beauty brands can leverage their knowledge of specific skin, hair or wellness concerns (such as hyperpigmentation, keloids or textured hair) and position themselves as leaders in innovation in those areas, they’ll prove differentiation and funding potential,” says Bronfman. An investor’s wishlist In the current climate, investors are looking for more than just strong brand projections. Nnenna Onuba, M&A strategist, British Beauty Council executive and founder of 100 Allies, an initiative that seeks to improve diversity in the beauty boardroom, says, “Brands need the trifecta: capital, connections and customers. The brands that get this right — balancing community growth with scalability — are the ones that thrive.” One critical shift is the need for beauty brands to show retail success beyond direct-to-consumer (DTC) platforms as consumers shop across channels and platforms. “DTC alone isn’t enough for investors anymore,” says Joël Palix, founder of Palix Unlimited, an M&A...