“Beauty is a very crowded category, so it’s important for founders to really understand their market and communicate their competitive advantage and differentiation,” Strandberg notes.
According to Dua, it’s important to answer a big question: why? “[The best pitch] gets to the heart of Why this product, Why now, and Why that team? ”she said.“ Don’t present the conservative model of what you think you can do today – present the big vision. We want to know how what you bring to the market is transformational. “
Find your way (despite COVID-19)
“There is no longer a chance – or intentional – encounter in an industry mixer, so warm introductions and cold emails are always important,” Johnson says of the change brought about by the COVID-pandemic. 19. A warm introduction through mutual acquaintances beats a cold email, but the latter is still valuable. “I have learned not to underestimate the value of a good cold e-mail, in short, well adapted to its recipient and which does not overload it with information or requests.”
Jotting down an introduction is not as difficult as you might think. “Start with the founders,” says Duggal. “There are so many great Founders to connect with, both in terms of learning, but also connecting with VCs they love and recommend.”
Bennett also suggests casting a wide net: “I recommend that brand founders make an effort to connect with investors, industry leaders and successful entrepreneurs they admire,” he says. “Contact through LinkedIn or email and don’t be afraid to ask someone to introduce you. I’ve found that the beauty industry generally supports young brands, but you have to do the work to make the connections. concept, income traction and a clear plan will do a lot for you, but relationships can open many doors. “
When it comes to errors, scheduling a meeting before you’re ready is high on our expert roster. “Know your numbers and the difference between ARR [annual recurring revenue], MRR [monthly recurring revenue], and GMV [gross merchandise volume]”Says Woodward.” And get a clear idea of the key metrics you need to know: AOV [average order value], LTV [lifetime value], month-to-month growth, profit over sales, etc. Bennett adds, “Be realistic. I find that many young founders don’t really know or understand how to grow their business. “
Consider other options
“VC is not the right path for many beauty brands, nor the end, everything,” Johnson recalls. She explains that most early stage venture capitalists are looking for huge returns, up to 20 times the investment, which means different goals can lead to a bad fit if funding is taken in the wrong circumstances. . “It is extremely important that founders ensure that their expectations are aligned with any the funders they partner with, whether they are venture capitalists, angel investors, friends / family, debt providers or others. “
