Ami Colé Shutting Down: VC-Backed Beauty Brand Closes

Ami Colé, Pioneering Beauty Startup, to Cease Operations

Diarrha N’Diaye-Mbaye, a trailblazer as one of the few Black women to secure over $1 million in venture funding, announced the closure of her acclaimed beauty company, Ami Colé, on Thursday.

Addressing a Gap in the Market

Ami Colé specialized in creating makeup formulations specifically designed for deeper skin tones. Consumers with richer complexions often encounter difficulties finding suitable color matches. The brand launched in 2021 and quickly gained prominence, becoming available through Sephora and attracting celebrity endorsements from figures like Kelly Rowland and Mindy Kaling.

Financial Backing and the Decision to Close

Despite raising more than $3 million in venture capital – with investments from firms such as G9 Ventures and Greycroft, as well as angel investors including Hannah Bronfman and Lindsay Peoples Wagner – the company will officially conclude operations in September. N’Diaye-Mbaye detailed her decision in an article for “The Cut,” stating that maintaining viability in the current market proved unsustainable after exploring all available options.

The Impact of the Post-Floyd Investment Surge

Ami Colé benefited from the increased investor interest in diverse and inclusive brands that emerged following the murder of George Floyd. Many Black-owned startups experienced a surge in funding during this period, as corporations sought to support diversity, equity, and inclusion initiatives.

Challenges of Rapid Growth and Investor Expectations

N’Diaye-Mbaye indicated that a key challenge stemmed from differing expectations between herself and her investors regarding the nature of a consumer retail business. While the brand cultivated a dedicated customer base, its rapid expansion created pressure from investors seeking accelerated growth.

Despite significant investment in marketing, Ami Colé struggled to compete effectively with larger, more financially robust companies. The business experienced fluctuating sales patterns in retail environments, with periods of strong performance alternating with periods of stagnation.

Shifting Investor Sentiment

“I found myself navigating a volatile landscape of investor appraisals,” N’Diaye-Mbaye wrote. “Some displayed a changing attitude towards equity and inclusivity, a shift from the commitments voiced in 2020.” This change in perspective created strain on the company’s direction.

Broader Trends in Venture Funding

This closure occurs amidst a broader decline in venture funding for Black founders, coupled with a political climate increasingly resistant to diversity, equity, and inclusion (DEI) initiatives. The current funding environment presents significant hurdles for minority-owned businesses.

Looking Ahead

N’Diaye-Mbaye concluded her announcement by emphasizing that, while this chapter is closing, her commitment to the beauty industry remains strong. “I still believe in beauty – at every level – and I’m looking forward to discovering what comes next,” she stated.