Hair category disrupter Madison Reed secured a growth capital raise of $51 million spearheaded by existing investors: Norwest Venture Partners and True Partners led the round, with participation from Comcast Ventures. New investor Meaningful Partners also joined the Series D funding. This latest round brings Madison Reed’s total raised since the brand’s launch in 2013 to just over $120 million.
“Madison Reed’s omnichannel strategy makes them one of the most exciting brands in beauty, and we are proud to be their partner,” said Jeff Crowe, managing partner at Norwest Venture Partners. “Amy [Errett] has turned her vision for Madison Reed into a nationwide phenomenon and now leads the hair color sector in innovation and growth.”
“It’s our pleasure to continue to support the Madison Reed team, Amy, and her world-class leadership team as they expand the brand’s offerings and open the doors to additional Color Bars across the country,” said Jon Callaghan, co-founder of True Ventures. “Next-generation brands like Madison Reed inspire a new kind of relationship between consumer and brand, and are redefining what is possible in large categories like beauty. We’re thrilled for Amy and the entire crew at Madison Reed as they uplevel, yet again.”
Madison Reed was founded in 2013 by Amy Errett, a former Maveron partner and a current special adviser to True Ventures. She told WSJ that she left venture investing behind when she realized how hair dyes sold at groceries and pharmacies failed to satisfy demand in a massive US market. Madison Reed is disrupting the $50 billion hair care industry by using technology in creative ways to make the at-home hair color experience a more luxurious, fearless, happy process.
This new investment will enable Madison Reed to accelerate the expansion of its omnichannel strategy:
- Online: Madison Reed plans to expand its suite of proprietary hair colors, introduce new products, utilize television advertising as a new customer acquisition channel, and build upon its reputation as a beauty innovator by unveiling new technology.
- Retail: Madison Reed Color Bars are a brick-and-mortar manifestation of the company’s online experience, where professionals apply the company’s formula in a fast and affordable setting. Currently, six Color Bars are open in New York City and San Francisco. That number will grow to 40 locations nationwide by the end of 2020.
- Wholesale: After two years of successful collaboration, Madison Reed is pleased to announce that it now has an exclusive partnership with Ulta Beauty, both online and in stores.
The funding announcement also came with the announcement of Brian Bouma as Madison Reed’s first-ever Chief Operating Officer and Carrie Kalinowski as Madison Reed’s new Chief Financial Officer.
“Brian and Carrie join an immensely talented C-suite. With their experience, Madison Reed is uniquely positioned to scale and execute our omnichannel strategy,” said Amy Errett. “Our goal is to meet the needs of our customers wherever it is most convenient for them, be that at home, in our Color Bars or at a top beauty retailer such as Ulta. We are truly channel agnostic, which is a first for the hair color industry, as is our creation of a prestige hair color sold directly to consumers.”
Photo: via Madison Reed