Our next moves in Beauty

Founders Factory ‍x L'Oreal

Founders Factory and L’Oréal are looking for brilliant founders to partner with, to build, scale and invest in the next generation of beauty companies in our venture studio and accelerator program.

We have pulled together seven themes that we believe will shape the future of beauty, and are excited to hear from others that feel the same.

Read more about our investment themes, in full, below.

If you’ve got an early stage business or an idea within these themes, we want to hear from you. Equally, if you are an investor interested in beauty tech, or looking to be an advisor to early stage businesses, please get in touch.

Powering D2C Brands

Over the last 3 years the number of direct-to-consumer beauty brands has skyrocketed, with a covid-induced recession set to create many more. Whilst most beauty entrepreneurs set out with a vision of the brand or product they want to create, all too often they get bogged down with the realities of sourcing manufacturers, Intellectual property, fulfilment, logistics and marketing. We are interested in how technology and new platforms can make it easier for D2C brands to overcome these hurdles, reach market and scale more quickly.

Example startups: Lumi, ShipStation, Packlane

Elevating Community

Brands have the chance to build community through marketing and outreach, and to open up two-way dialogue with their communities for inspiration and feedback on innovation pipelines. At the same time, Beauty communities are impacting the way the beauty industry operates ground-up, as we see an emergence of new means of social selling. We are looking for tools to help brands better engage with their buyer communities, as well as new ways of enabling beauty communities to buy and sell.

Example startups: Glossier, HudaBeauty

The True Cost of Quality

As we enter a Covid-induced recession we will witness more consumers than ever seeking high-quality and good value, with evolving values and behaviours around when customers are willing to pay more versus make cuts. We are looking for ways to streamline the process of delivering quality to reduce cost and maximise efficiency, such as revolutionary new business models (e.g. Group Buying) that will allow brands to deliver quality at better value for customers.

Example startups: Beauty Pie, The Ordinary, Brandless

Beauty Sleep

With half of global consumers already seeking new treatment solutions for sleepless nights before the pandemic hit, Covid-19- related anxiety is only amplifying this growing problem. Like every good beauty routine, sleep is a daily, ritualistic exercise - one that influences your appearance and your mood like no other - yet one that is often overlooked by health tracking or adherence-focused businesses. We are looking for sleep-promoting tools or services in the beauty space that take a holistic approach to health and wellness.

Example startups: Moonlit Skincare, Calm, Givaudan

Headless Commerce

eCommerce is shifting from monolithic to API first, with the frontend of the eCommerce experience decoupling from the backend. This means that multiple customer touchpoints where transactions take place connect seamlessly with business-critical processes like order and inventory management, payment processing, or shipping, enabling any content to become shoppable anywhere. We are looking for new tools and platforms that solve for real human problems in this space, helping to elevate brand experience and enable buyers.

Example startups: Shoppable, Nate

New Mediums: Voice, AR & Video

Brands in every sector are waking up to the power they have to engage, attract and sell to customers via new technological mediums. With beauty e-commerce on the rise, the use of voice, AR and video will become increasingly important in allowing customers to ask questions, experience products and purchase from home. We are looking for ideas that will bring new levels of quality and/or simplicity that make voice, AR or video interactions standard in the beauty industry or ways for mediums to better interact with one another

Example startups: Daily.co

B2B Workflow Tools

Consumers expect brands to be innovating faster than ever. As such businesses in every sector have embraced B2B workflow tools to reduce wasted time and speed up decision making. We are interested in novel B2B workflow tool that helps brands to focus on launching products more quickly. Think about reducing the time spent analysing spreadsheets, financial reporting, performing competitor analysis, determining the price of the product or designing and managing advertising campaigns, just to name a few.

Example startups: Faraday

Have you found your match?

If you would like to partner with us to grow a business
in one of these areas then let us know.

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Young Street
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