Madison Reed announced a $52 million financing round to continue to fuel its omni-channel expansion and build upon the 130 percent growth it saw during 2020.
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 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: The capital will allow the brand to continue to fuel its omni-channel expansion and build upon growth it saw during 2020.
IN THEIR OWN WORDS: “What 2020 demonstrated is something we’ve always known: hair color is a category that’s essential to every woman,” said Madison Reed founder and CEO Amy Errett. “Our business surged as hundreds of thousands of customers across the country turned to a brand they could trust to deliver salon-gorgeous results with a formula made with ingredients they could feel good about.”
“We believe consumer behaviors have changed forever, and this category is in the epicenter of that change,” added Errett. Madison Reed has continued to offer product and technology breakthroughs, including 1:1 hair-color consultations via video with expert colorists, as well as a new educational concept called “Hair Color House Parties” that uses Zoom to teach consumers how to color their hair, live, from licensed Madison Reed colorists.
“Amy and the entire Madison Reed team have been laser focused on the changing dynamics of consumer preferences,” said Jon Callaghan, co-founder of True Ventures. In addition to investing in Madison Reed with its third core venture fund, True has invested in the company with all four of its Select Funds, which are designed to propel high-growth True portfolio companies of exceptional promise. “Madison Reed has brought transparency to a category begging for it while growing its unique, inclusive, and representatively diverse team internally. Millions of people have benefited from this better, higher quality hair color and care while recreating what their lives look like at home. We’re staying all in with Amy and her team as they continue to show up for consumers in an omnichannel way.”
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