Total amount raised
$237.2 Millions
Latest funding date
12/1/2020
Location
ipsy has successfully raised over $100 million in growth capital from premier investors, including TPG Growth and Shervin Pishevar. The company offers a personalized monthly subscription service delivering beauty samples to its members.
Keep reading to explore the intricacies of ipsy's fundraising journey and the investors backing this innovative platform.
What Is ipsy?
ipsy, founded in November 2011 by Michelle Phan, Jennifer Jaconetti Goldfarb, and Marcelo Camberos, is headquartered in San Mateo, California. The company has grown to become the world’s largest beauty community, offering a personalized monthly subscription service that delivers beauty samples to its members.
ipsy’s Glam Bag subscription service provides five beauty product samples tailored to individual preferences, reaching over 1.5 million subscribers each month. The company also produces premier content, engaging over 20 million people monthly through stylist videos and social posts.
With a team of 101-250 employees, ipsy operates from offices in the Bay Area, NYC, and LA, bringing together seasoned professionals from the beauty, e-commerce, tech, and studio industries.
How Much Funding Has ipsy Raised?
- Seed Round
- Amount Raised: $480K
- Date: December 2011
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the business and develop the initial product offering.
- Series A
- Amount Raised: $2.8M
- Date: July 2012
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and scale the subscription service.
- Series B
- Amount Raised: $100M
- Date: September 2015
- Lead Investors: ACME Capital, TPG Growth
- Valuation at Round: Estimated north of $500M
- Motivation Behind the Round: To scale the business, innovate, and delight the community.
- Funding Round
- Amount Raised: $134M
- Date: December 2020
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further expand the product line and enhance customer experience.
Total Amount Raised: $237.28M. Current Valuation: Not publicly disclosed.
Key Investors
- TPG Growth
- Details: TPG Growth is a global investment firm that focuses on growth equity and middle-market buyout opportunities. They have a strong track record of investing in high-profile companies.
- Investment Focus Areas: Technology, consumer brands, healthcare.
- Notable Investments: Uber, Airbnb, Spotify.
- ACME Capital
- Details: ACME Capital is a venture capital firm that invests in innovative companies across various sectors. They have a portfolio of 144 organizations.
- Investment Focus Areas: Technology, media, consumer products.
- Notable Investments: Not publicly disclosed.
- Sherpa Capital
- Details: Sherpa Capital is a venture capital firm known for investing in innovative consumer brands. They leverage their extensive media relationships to help companies scale.
- Investment Focus Areas: Consumer brands, technology, media.
- Notable Investments: Not publicly disclosed.
- Shervin Pishevar
- Details: Shervin Pishevar is a venture capitalist and entrepreneur. He has been involved in the early stages of several successful startups.
- Investment Focus Areas: Technology, transportation, consumer products.
- Notable Investments: Uber, Airbnb, Warby Parker.
- Not publicly disclosed investors
- Details: Several investors have participated in ipsy's funding rounds but have chosen to remain undisclosed. Their involvement has been crucial in ipsy's growth.
- Investment Focus Areas: Not publicly disclosed.
- Notable Investments: Not publicly disclosed.
What's Next for ipsy?
ipsy stands poised to capitalize on the growing demand for personalized beauty products and subscription services. With a user base of 1.5 million subscribers and annual revenue exceeding $150 million, the company has ample room for growth. Leveraging social media and content creation, ipsy can further engage its audience and expand its market presence.
Future fundraising opportunities look promising, especially with the backing of investors like TPG Growth and Sherpa Capital. These investors' extensive networks could facilitate additional investment rounds, potentially leading to an IPO. However, ipsy must navigate challenges such as intense competition and maintaining customer satisfaction to sustain its growth trajectory.
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