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Madison Reed Raises $33 Million Amid Rapid Expansion

April 29, 2022
April 29, 2022
Madison Reed

Madison Reed, the prestige beauty brand that has revolutionized the hair color industry, raised $33 million in new financing led by Sandbridge Capital, with participation from Marcy Venture Partners.

WHO: Founded in 2013 by Amy Errett, Madison Reed is a beauty company revolutionizing the way women color their hair. The fast-growing disruptor has created a luxurious hair color formula with a Smart-8 Free formula—free of PPD, ammonia, parabens, resorcinol, phthalates, gluten, SLS, and titanium dioxide, ingredients that are typically used by other hair color brands. For those who prefer to color their hair at home, Madison Reed uses proprietary color-matching technology and a team of on-call colorists to help women choose the perfect shade of hair color, which is delivered to their door. For those who prefer to have Madison Reed color applied with the help of a professional, Madison Reed Color Bars are open in New York City, the San Francisco Bay Area, and Dallas-Fort Worth, with more coming soon. Products can be found on the brand's website, Madison Reed Color Bars, and Ulta Beauty.

WHY: Through this strategic investment, Madison Reed will leverage Sandbridge Capital and Marcy Venture Partners' global expertise across the modern retail and beauty space in order to increasingly scale its successful omnichannel business.

This funding will accelerate Madison Reed's Hair Color Bar growth, as the company plans to operate 80 locations by the end of the year. The company also plans to hire 850 new colorists in 2022, who will earn 3x more than in a traditional salon, while receiving full-time benefits. The key regions Madison Reed is targeting further expansion in includes major hubs such as New York City, South Florida, California, Chicago, Washington, DC, and Texas.

In addition to its Hair Color Bar business, Madison Reed is using this new round of financing to grow its omnichannel offerings and expand the company's color, care, and maintenance product portfolio through new innovations that are always Smart 8-Free and Leaping Bunny Certified. This growth consists of Madison Reed's established wholesale business in retailers including Ulta and Ulta Beauty at Target, along with its strong recurring customer base online at Madison-Reed.com and Amazon.

IN THEIR OWN WORDS: "Madison Reed was built on the belief that salon-gorgeous hair color should be convenient, affordable and made with ingredients women can feel good about. We have achieved this by showing women that Madison Reed products and services give them agency and autonomy when it comes to coloring their hair, with high-quality results through our at-home products or in our 60+ nationwide Hair Color Bar locations," said Amy Errett, CEO and Founder of Madison Reed. "As we continue to grow our geographic and retail footprint, we couldn't be more excited to partner closely with Sandbridge Capital and Marcy Venture Partners in this chapter of expansion. Their deep retail and beauty experience will be critical as we enter our next stage of growth."

"We are highly enthused to be partnering with Amy and the exceptional Madison Reed team as the brand continues to disrupt the industry with its dedicated focus on delivering only the highest quality ingredients to the hair care market," said Ken Suslow, Sandbridge Capital Founder and Managing Partner. "Madison Reed's innovative omnichannel approach maximizes convenience while delivering a compellingly modern consumer experience across the board. Sandbridge is proud to join the Madison Reed team in support of their important category defining mission."

DETAILS:

  • Madison Reed raised $33 million in new financing led by Sandbridge Capital, with participation from Marcy Venture Partners.
  • The company raised $51 million at the beginning of 2019 in order to roll out more Color Bars.
  • In February 2021, Madison Reed​ announced a $52 million financing round.
  • In March 2017, the company secured $10 million in debt financing and Comcast Ventures led a $25 million Series C in October. 
  • In November 2016, an additional $13 million was raised. 
  • In September 2015, the brand closed a $16.1 million Series C led by Shea Ventures.
  • In January 2014, a $12 million Series B led by Northwest Ventures was raised. 
  • In April 2013, they raised a $4 million Series A led by True Ventures.
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