Swiftarc Ventures Launches New Beauty Fund for Women-Led Startups

Swiftarc Ventures Launches $10 Million Fund for Female Beauty Founders

Swiftarc Ventures has unveiled a $10 million investment fund, the Swiftarc Beauty Fund, specifically designed to empower female entrepreneurs spearheading innovation in the beauty and wellness sectors.

Fund Details and Company Background

Founded in 2019, this represents Swiftarc’s fourth fund, as confirmed by Sid Jawahar, the firm’s founder and managing partner, in a statement to TechCrunch.

Jawahar emphasized the firm’s commitment to addressing systemic funding disparities. “We are intentionally focused on resolving the funding challenges faced by female and diverse founders,” he stated.

Commitment to Diversity

This commitment extends internally, with Swiftarc aiming to achieve a 50% diverse employee base by 2022, according to Jawahar.

The Evolving Beauty Landscape

Jawahar observes that the beauty industry remains largely reliant on traditional wholesale channels, with 75% to 80% of sales still occurring through this method.

However, he notes that the rise of e-commerce and digitally native brands represents only a fraction of the potential for change.

A significant shift is the growing influence of inclusive beauty, with purchasers from diverse backgrounds now constituting the majority of consumers.

The Importance of Community

Success in the current beauty market, Jawahar explains, hinges not only on the brand itself but also on the cultivation of a strong and engaged community.

Expert Leadership

To spearhead the firm’s beauty initiatives, Swiftarc has appointed Fabian Urquijo, whose prior experience includes leadership roles at P&G and Revlon, as president.

Urquijo highlighted the agility of digitally native brands. “Independent brands with a digital focus can effectively address unmet consumer needs through personalization in ways that established brands often struggle to replicate,” she explained.

These innovative brands frequently experience acquisition by larger companies, continuing to drive growth from within.

Investment Focus

The Swiftarc Beauty Fund will prioritize investments in several key categories, including:

• Clean and sustainable beauty
• Science-backed beauty products
• Technology-enabled and community-driven beauty
• Gender-neutral and inclusive brands

Investment Strategy and Portfolio

Jawahar anticipates investing in five to seven companies initially, allowing Swiftarc to provide focused expertise, with the potential to expand to ten.

The firm has already made an investment in Alleyoop, a makeup and skincare line designed for busy women.

Comprehensive Support for Founders

The fund offers more than just financial backing; it provides mentorship, networking opportunities, and targeted training.

This support is facilitated by an all-female Beauty Council comprised of industry leaders, investment professionals, and beauty startup executives.

The council is dedicated to assisting 100 to 200 female founders by offering key introductions and foundational expertise.

Building the Beauty Council

Leslie Wolfson, Swiftarc’s engagement director, is responsible for assembling the Beauty Council.

She stated her goal was to “curate a group of accomplished women with varied backgrounds, extensive career experience, and a willingness to mentor and share their knowledge with founders.”