12.22.23
Rachel Reid, founder of Subtl Beauty, a pioneer in compact, convenient makeup, has closed a Series A funding round with a substantial investment from consumer investment firm, Cult Capital.
Cult Capital's $5 million investment is a strong vote of confidence in Subtl Beauty's mission to redefine consumers' beauty routines and challenge the industry's status quo. The funding round comes on the heels of Subtl debuting its refreshed, award-winning stackable makeup packaging with cutting-edge bezel technology.
The significant series A investment funding round comes as no surprise as the beauty brand has grown a "cult" following, and growth has exceeded a reported 170% year-over-year.
Reid said Cult Capital's strong track record of success in the beauty category, was a driving force behind the partnership, having most recently sold a majority stake in Supergoop! to Blackstone Growth for a significant outcome.
"The partnership with Cult Capital marks a pivotal moment for us; it is a testimony not only to our product but also to our business trajectory," said Reid, founder and CEO of Subtl Beauty. "Cult Capital's network and experience scaling beauty brands is exactly what we need to take our business to the next level. "
Known for its selective investment approach, Cult Capital evaluates hundreds of companies annually, but chooses to invest in a handful. Cult Capital solely considers brands for investment with a minimum of $2 million in revenue.
Known for its selective investment approach, Cult Capital evaluates hundreds of companies annually, but chooses to invest in a handful. Cult Capital solely considers brands for investment with a minimum of $2 million in revenue.
"In a sector brimming with choices and complex beauty routines, Subtl stands out with its uniquely convenient and compact stackable beauty solutions," said Sarah Woelfel, partner at Cult Capital. "The remarkable scale of the brand, with over 300,000 Staks sold since launch, underscores its strong connection with today's beauty enthusiasts. This success not only reflects Subtl's deep understanding of consumer needs but also highlights a significant, unmet demand in the beauty sector."
Cult Capital brings a wealth of experience building and scaling consumer brands, and has a proven track record in beauty with brands including Supergoop!, Lawless Beauty and Act+Acre. With the recent close of its second fund, Cult Capital says it is dedicated to backing the “rare and remarkable” brands poised to “revolutionize” the consumer industry.
Convenience for the ‘On-the-Go’ Consumer
Launched in 2018, Subtl was inspired by the founder Rachel Reid’s experiences of the hustle of modern life and the desire to look put together effortlessly. Moreover, Reid designed a compact, stackable and customizable solution to meet real makeup needs in the midst of everyday life. Subtl's products are packaged in a travel-friendly stackable format for on-the-go consumers. All product formulations are vegan and cruelty-, paraben- and fragrance-free.
The brand’s new Stak 2.0 packaging recently won a BeautyMatter NEXT award and includes a refillable design with cutting-edge bezel technology. Alongside its repackaging, Subtl reimagined its makeup formulas in response to consumer insights, ensuring clean beauty standards and introducing new skin-conditioning ingredients like bayberry fruit wax and Vitamin E.