Madison Reed has successfully raised $130.8 million over six funding rounds, with backing from top-tier venture capital firms such as Norwest VP, True Ventures, Maveron, and Shea Ventures. The company offers salon-quality, ammonia-free hair color products that can be used at home or through professional services at their Hair Color Bars.
Keep reading to explore the intricacies of Madison Reed's fundraising journey and the investors backing this innovative platform.
What Is Madison Reed?
Founded in San Francisco, Madison Reed is an e-commerce startup revolutionizing the hair care market with technology. Established by Amy Errett, Sabrina Riddle, Eric Hutchinson, and Andrew Trader, the company offers salon-quality, ammonia-free hair color products for at-home use and professional services at their Hair Color Bars.
With a team of 201-500 employees, Madison Reed is committed to providing beautiful, healthy, and natural hair solutions. Their products are cruelty-free and free of harsh ingredients, aligning with their mission to empower women through confidence in their appearance.
Madison Reed's innovative approach and dedication to quality have positioned them as a leader in the $50B hair care market. Their headquarters remain in San Francisco, with 90+ Hair Color Bars nationwide, making their services accessible to a broad audience.
How Much Funding Has Madison Reed Raised?
- Series A
- Amount Raised: $4,000,000
- Date: April 2013
- Lead Investors: True Ventures
- Motivation Behind the Round: To disrupt the hair dye market with a new at-home hair color solution.
- Series B
- Amount Raised: $12,000,000
- Date: January 2014
- Lead Investors: Norwest Venture Partners
- Motivation Behind the Round: To scale operations and expand market reach.
- Series C
- Amount Raised: $16,100,000
- Date: September 2015
- Lead Investors: Comcast Ventures, Shea Ventures, Norwest Venture Partners, True Ventures
- Motivation Behind the Round: To scale the business and invest in expanding marketing, specifically on TV.
- Series C
- Amount Raised: $13,000,000
- Date: February 2017
- Lead Investors: Comcast Ventures, Norwest Venture Partners
- Motivation Behind the Round: To sustain growth, expand product availability, and enhance customer service through technological innovations and new storefronts.
- Series D
- Amount Raised: $25,000,000
- Date: October 2017
- Lead Investors: Comcast Ventures
- Motivation Behind the Round: To open a chain of "color bars" across the U.S. to accelerate business growth.
- Series D
- Amount Raised: $60,700,000
- Date: January 2019
- Lead Investors: Norwest Venture Partners, Comcast Ventures, Calibrate Ventures
- Motivation Behind the Round: Significant scaling of operations and market expansion.
Total Amount Raised: $130.8M
Current Valuation: $500M (~estimated)
Key Investors
- Norwest Venture Partners (Norwest VP)
- Details: Norwest Venture Partners is a global, multi-stage venture capital and growth equity investment firm managing more than $9.5 billion in capital. They have invested in over 600 companies since their inception.
- Investment Focus Areas: Technology, healthcare, business services, consumer products.
- Notable Investments: Uber, Spotify, BlueJeans.
- True Ventures
- Details: True Ventures is a Silicon Valley-based venture capital firm that invests in early-stage technology startups. They focus on providing seed and Series A funding to innovative companies.
- Investment Focus Areas: Early-stage technology startups, consumer products, services.
- Notable Investments: Fitbit, Peloton, Ring.
- Maveron
- Details: Maveron is a consumer-only venture capital firm that invests in early-stage companies. They focus on businesses that aim to create strong consumer brands.
- Investment Focus Areas: E-commerce, education, health.
- Notable Investments: eBay, Zulily, Allbirds.
- Comcast Ventures
- Details: Comcast Ventures is the venture capital affiliate of Comcast Corporation. They invest in innovative companies across various sectors.
- Investment Focus Areas: Media, technology, consumer products.
- Notable Investments: Instacart, Nextdoor, Vox Media.
- Calibrate Ventures
- Details: Calibrate Ventures is a venture capital firm that invests in early-stage companies. They focus on technology and innovation.
- Investment Focus Areas: Technology, innovation.
- Notable Investments: Typically early-stage tech companies.
What's Next for Madison Reed?
Madison Reed is poised to capitalize on the $18 billion U.S. hair color market by expanding its chain of color bars and developing new product lines, including those for men. The company’s innovative use of technology, such as online consultations and mobile apps, positions it well to capture a significant market share. With plans to open 25 new color bars and leverage partnerships with retailers like Ulta, the growth potential is substantial.
Future fundraising opportunities are likely, given the company's rapid growth and interest from larger consumer packaged goods companies. Madison Reed may explore going public or securing additional venture capital to support its expansion. However, challenges such as maintaining product consistency, managing rapid growth, and competing with established brands like L'Oréal and Clairol remain. Ensuring high-quality service across multiple locations and effectively scaling operations will be crucial for sustained success.
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