The phenomenon that is Beautycon is ready for its close-up, raising $9 million. The business is best known for the annual meetups that have turned into full-blown festivals in LA, NYC, and London, connecting consumers with their favorite influencers, and giving brands access to the coveted millennial demographic. However, BeautyCon is really a year-round digital media company that creates and aggregates editorial and multimedia content relevant to its audience along with a beauty box and branded merchandise.
WHO: Founded in 2011 by Moj Mahdara, Beautycon began as a Los Angeles event planner that booked and coordinated conferences linking YouTube stars, their audience, and the brands that want to market to them. Targeting young women between the ages of 18 and 25, Beautycon estimated that the demographic represents $4 billion a year in spending on cosmetics, another $5.7 billion on apparel and accessories, and $8.2 billion on computers and electronics. They have since expanded the festivals to NYC and London, launched a beauty box, and created branded merchandise.
WHY: The new funding will fuel the expansion of the company’s media footprint. Part of the money is earmarked to hire a new head of content so that Beautycon can not only harness a generation of new media influencers, but also have a more active hand in creating them. In addition to new content, Beautycon is also making a huge push into data and analytics.
IN THEIR OWN WORDS: “The conferences are now officially festivals,” says Mahdara. And now it’s time for the company to expand its footprint. Mahdara has set up a small shop for Beautycon swag, but sees opportunities to sell its own brands of cosmetics and (potentially) other apparel. Nancy Dubuc, president and CEO, A+E Networks, told TechCrunch, “Beautycon has done an incredible job growing and evolving their business into a major player, not only in the experiential marketplace, but also the digital content and e-commerce businesses. Moj has created a global movement for beauty and fashion enthusiasts. We are thrilled to partner with Beautycon, and look forward to exploring a number of synergies particularly with our Lifetime brand.”
- This $9 million in Series A funding brings the total amount of capital raised to $11 million in 2 rounds from 24 investors.
- The money in this round is coming from an assortment of new strategic investors and pedigreed family offices, including A+E Networks and Main Street Advisors. Previous investors include YouTube celebrity Bethany Mota, CAA, BBG Ventures (AOL’s venture fund), Hearst Media, and Jay Brown.
- According to Crunchbase, a $2 million seed round in March 2014 was led by Hearst Corporation and included 19 other investors.
- Estimated revenue according to Owler is $4 million.
- In its fourth year, Beautycon LA had its largest turnout to date with over 15,000 attendees, almost doubling in size from 8,000 in 2015.
Read the full article in TechCrunch.