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Ulta Beauty’s Prisma Ventures Seeks Digital Disruptors and Startups To Shape Future of Shopping

New $20 million digital innovation fund for emerging tech companies that will impact online and in-store experiences.

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By: Christine Esposito

Editor-in-Chief

Ulta Beauty has officially launched Prisma Ventures, a digital innovation fund set to invest $20 million in emerging technology startups that seek “to shape future online and in-store experiences by unlocking new technology that fuels greater discovery, personalization, and convenience.”

“Launching Prisma Ventures is yet another way Ulta Beauty innovatively leads and delivers forward-thinking retail experiences. We believe this fund presents opportunities for creative disruptors to further propel the industry forward,” said Prama Bhatt, chief digital officer, Ulta Beauty. “We set out to build lasting relationships with startups, welcoming them into our ecosystem, co-creating and experimenting in ways that tap each other’s expertise and ultimately leverage our resources to imagine – and reimagine – what’s next for retail and beauty.”

Established to accelerate innovation by nurturing long-term, strategic partnerships, the fund pairs Ulta Beauty’s size and scale with the agility and singular focus of tech startups. Beyond capital investment, Prisma Ventures provides access to the retailer’s deep expertise and resources. To optimize and meaningfully deliver disruptive technologies, fund participants will have access to  Ulta Beauty’s innovation team, unparalleled consumer insights, and in-market testing opportunities, the retailer said.

Since its announcement at Ulta Beauty’s 2021 investor day, Prisma Ventures has partnered with and invested in a variety of start-ups including Haut.ai, Adeptmind, Revea, LUUM, and ReStyle.  To date, these investments have enabled greater personalization and diagnosis within Ulta Beauty’s digital skin and hair experiences, according to the beauty retailer which operates more than 1,300 retail stores across 50 states. 

Prisma Ventures partners with early-stage startups that are primarily Series Seed and Series A technology companies within the following innovation pillars:
• Personalized & Data Driven Technology;
• AR, VR & the Metaverse;
• Technology-Powered Custom Beauty Products & In-Store Services; and
• Social Commerce.

According to Ulta, these pillars mirror its digital innovation priorities and growth mindset, accounting for the majority of Prisma Ventures investments. The remaining investments are reserved for opportunistic technologies beyond the company’s core digital strategy to disrupt other facets of retail, beauty, or commerce more broadly.

The Prisma Ventures team will evaluate applicants based on five key metrics:
•  Alignment with a Focus Area: Companies that align with Ulta Beauty’s four primary innovation pillars;
•  Leadership & Cultural Compatibility: The startups’ management experience, ability to execute, and cultural fit to enable successful collaboration;
• Diligence & Risk Assessment: Successful completion of diligence across functions such as legal, technical, and business;
•  Business Plan & Scalability: Strength of value proposition, vision, plans to reach financial goals and scale; and
• IP & Differentiation: Novel capabilities, patents, and technologies.

Applicants can get more details online.

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