Christine Esposito, Managing Editor11.02.20
In October, Black Girl Ventures (BGV) announced a new partnership with Rare Beauty Brands (RBB) to create what the two firms called the first national crowdfunding pitch event for Black and Brown women-identifying founders in the beauty industry. All participants gain access to the BGV Connect Incubator, which provides educational resources like workshops and feedback sessions, as well as business development resources including virtual co-working sessions and funding opportunities.
Applications closed on October 16, and the next step comes later this month after BGV and Rare Beauty Brands narrows the field down the top applicants who will present during a virtual pitch competition scheduled for November 17. The finalists will have three minutes to make their pitch, followed by a 2-minute Q&A from a panel of beauty industry professionals and celebrities (including TV personality Vanessa Simmons).
On November 24, the pitch competition will be streamed online, and America will be invited to vote for and make financial contributions in support of their favorite pitch via SheRaise, BGV’s tech platform, said RRB.
Happi had a chance to ask Chris Hobson, founder of Patchology, which is part of RBB, to provide insight in the competition and the innovation coming out of the indie beauty business and more.
HAPPI: How did this venture come about between the two organizations?
Hobson: At Rare Beauty Brands, we believe passionately in the power of entrepreneurship to transform people’s lives. Our brands were started by plucky entrepreneurs with a vision, a ton of hard work and some good decisions along the way, and supporting these brands as they grow is core to our mission. When we met Shelly and the team at BGV, there was an instant connection because we had this consistent base of values and beliefs. It’s very fitting that Shelly and I both started ventures when we were very young and they were both in the same industry, so we were starting from common ground.
HAPPI: What do you love about the innovation you see right now in the beauty business from Black and Brown women founders?
Hobson: I love how diversity begets diversity! Right now, you have an explosion of brands founded by Black and Brown women, which is great because that diversity yields better products that meet more consumer needs. For example, I really love what Trinity Mouzon Wofford is doing with her Golde brand in the wellness category, and for something totally distinct, what Dana Jackson is doing with Beneath Your Mask in skin care.
HAPPI: How are these indies shaping the future of the beauty business?
Hobson: Indie brands in general are where the exciting innovation is happening. These are the brands with the closest relationship to a specific “tribe” of consumers, the ability to innovate quickly and authentically, and the passion and doggedness to make their vision a reality. And nowhere is this more evident than with the indie brands that have been founded by Black and Brown entrepreneurs —the sheer quantity and diversity of them is leading to rapid innovation on multiple vectors, whether it be product or brand, go-to-market or funding. These brands are forging a truly authentic connection with their consumers, which is something the entire beauty business covets.
HAPPI: Contract manufacturers and ingredient/packaging suppliers are a critical part of the beauty business—has there been a bias here similar to that when it comes to accessible funding for Black and Brown brand founders/entrepreneurs?
Hobson: The thing to keep in mind is that while it is relatively capital-light, at least in the early stages, to start a brand, it is very capital intensive to start a contract manufacturer or ingredient supplier right from the beginning. Before you have a sense for customer response, these businesses require large capital expenditures for property, plant and equipment, and thus pure startups are relatively rare. And because of the small sample size, I don’t think there is enough data to truly say whether there is bias in the funding of these kinds of ventures, other than to say, I would guess that the same implicit biases that have restricted access to funding and career advancement (which is quite often a prerequisite for the ability to raise capital) for Black and Brown entrepreneurs, would apply here as well.
Applications closed on October 16, and the next step comes later this month after BGV and Rare Beauty Brands narrows the field down the top applicants who will present during a virtual pitch competition scheduled for November 17. The finalists will have three minutes to make their pitch, followed by a 2-minute Q&A from a panel of beauty industry professionals and celebrities (including TV personality Vanessa Simmons).
On November 24, the pitch competition will be streamed online, and America will be invited to vote for and make financial contributions in support of their favorite pitch via SheRaise, BGV’s tech platform, said RRB.
HAPPI: How did this venture come about between the two organizations?
Hobson: At Rare Beauty Brands, we believe passionately in the power of entrepreneurship to transform people’s lives. Our brands were started by plucky entrepreneurs with a vision, a ton of hard work and some good decisions along the way, and supporting these brands as they grow is core to our mission. When we met Shelly and the team at BGV, there was an instant connection because we had this consistent base of values and beliefs. It’s very fitting that Shelly and I both started ventures when we were very young and they were both in the same industry, so we were starting from common ground.
HAPPI: What do you love about the innovation you see right now in the beauty business from Black and Brown women founders?
Hobson: I love how diversity begets diversity! Right now, you have an explosion of brands founded by Black and Brown women, which is great because that diversity yields better products that meet more consumer needs. For example, I really love what Trinity Mouzon Wofford is doing with her Golde brand in the wellness category, and for something totally distinct, what Dana Jackson is doing with Beneath Your Mask in skin care.
HAPPI: How are these indies shaping the future of the beauty business?
Hobson: Indie brands in general are where the exciting innovation is happening. These are the brands with the closest relationship to a specific “tribe” of consumers, the ability to innovate quickly and authentically, and the passion and doggedness to make their vision a reality. And nowhere is this more evident than with the indie brands that have been founded by Black and Brown entrepreneurs —the sheer quantity and diversity of them is leading to rapid innovation on multiple vectors, whether it be product or brand, go-to-market or funding. These brands are forging a truly authentic connection with their consumers, which is something the entire beauty business covets.
HAPPI: Contract manufacturers and ingredient/packaging suppliers are a critical part of the beauty business—has there been a bias here similar to that when it comes to accessible funding for Black and Brown brand founders/entrepreneurs?
Hobson: The thing to keep in mind is that while it is relatively capital-light, at least in the early stages, to start a brand, it is very capital intensive to start a contract manufacturer or ingredient supplier right from the beginning. Before you have a sense for customer response, these businesses require large capital expenditures for property, plant and equipment, and thus pure startups are relatively rare. And because of the small sample size, I don’t think there is enough data to truly say whether there is bias in the funding of these kinds of ventures, other than to say, I would guess that the same implicit biases that have restricted access to funding and career advancement (which is quite often a prerequisite for the ability to raise capital) for Black and Brown entrepreneurs, would apply here as well.
