Courtney Caldwell and her spouse, Tye, have been developing ShearShare, a Dallas-based startup that functions as a marketplace linking stylists with available workstations in hair salons, since 2017.

From the beginning, the two co-founders dedicated themselves to the challenges of building a business from the ground up—a commitment that included regular travel between San Francisco and Dallas to participate in the 19th 500 Startups program and involvement in Y Combinator’s Fellowship program.

The company is now positioned for growth, having secured a seed funding round of $2.3 million, along with a non-dilutive cash grant from Google for Startups Black Founders Fund.

Both co-founders possess significant experience within the beauty sector. Tye Caldwell is a respected figure in the industry and has been elected to membership on the advisory board of the Professional Beauty Association. Alongside Courtney, he manages a successful salon located in Dallas.

Courtney Caldwell, meanwhile, previously spent over two decades in technology marketing at Oracle. However, neither had substantial exposure to the venture capital landscape. When they conceived the idea for a service that would connect salons and stylists online—inspired by their own need to fill an empty station at their salon—they were unsure where to begin.

This is where TD Lowe came into the picture. As a long-standing investor and with affiliations with organizations like StartupGrind, Lowe guided the couple into the world of venture capital and startups, setting them on their current path.

“We created a system for on-demand barbershop and space rentals,” Courtney explained. “A stylist can reserve an open station at a salon or barbershop in the same way they would book a hotel room.”

The Caldwells note that the beauty industry is the second-largest sector for freelance and independent contractors. Unlike other companies focused on providing stylists with tools like booking and appointments independent of salons, or services exclusively for salons, ShearShare aims to support both sides of the marketplace with the resources they require.

“We are distinct from StyleSeat and Squire,” Courtney stated. The company is currently experiencing rapid expansion, with listings in over 600 cities, offering rentals ranging from $15 in Georgia to $569 in Manhattan, New York City.

The company facilitates payments to stylists through a partnership with First American Payments, a local payment processing solution based in Ft. Worth, Texas.

“With a growing focus on direct-to-consumer models,” Courtney said, “we are contributing to keeping people employed and bolstering individual economic recovery.”

The company’s next initiative is to introduce additional services for stylists, starting with an insurance policy that would protect them from potential on-the-job lawsuits.

“This represents a significant new opportunity for stylists,” Tye commented. The idea originated when the Caldwells found no existing options while searching for ways to rent space in a barbershop, they explained. “We consulted with a friend about the opportunity, and she remarked, ‘This is a billion-dollar idea.’ ”

That friend was Lowe, who provided guidance and mentorship to the couple regarding startup investing.

The concept is potentially worth tens of millions of dollars, comparable to the funding raised by Mayvenn, a startup focused on providing hair extensions and cosmetics to stylists.

With this new funding secured, ShearShare is prepared to expand, the couple affirmed.

ShearShare’s investors include: Precursor Ventures, Revolution’s Rise of the Rest Seed Fund, Structure Capital, Backstage Capital and 500 Startups, as well as new investors Bread and Butter Ventures, ArlanWasHere Investments (Arlan Hamilton’s fund, with Mark Cuban as the sole limited partner), Lightspeed Venture Partners Scouts Program (led by Veronica Juarez and Jason McBride), Jaylon Smith of the Dallas Cowboys through the Minority Entrepreneurship Institute, Thaddeus Young of the Chicago Bulls with Reform Venture, the Bumble Fund, Notley Ventures, Sachse Family Fund and a number of other global investors.

These investors represent a new wave of investment focused on directing venture capital into sectors that have historically been overlooked by traditional firms.

As Julie Fredrickson, CEO of a beauty and lifestyle startup, noted to TechCrunch several years ago, “Many of these brands are comparatively underfunded compared to tech companies in similar positions. There’s an opportunity for a completely new dominant player, and no one is actively pursuing it.”

There is substantial potential for businesses serving all facets of the beauty industry to thrive, according to entrepreneurs and investors.

“Venture capital is evolving as private equity and family offices increasingly invest in earlier-stage companies because they are willing to pursue venture-style returns in industries that venture capital is less familiar with or prepared to address,” Fredrickson explained.