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Why Did IVP Give Glossier $24 Million?

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Glossier's latest funding will drive its next phase of growth, including a physical retail space.

IVP knows a disruptor when it sees one and has dropped some serious money their way: Dropbox, The Honest Company, Netflix, Snap and Twitter. Now, add to that list Glossier.

But why?

According to a post by Glossier founder and CEO Emily Weiss, the Series B funds will help the company to boost its technology, expand globally, launch products in new categories and opening its first retail space.

"Soon their newest product, Priming Moisturizer Rich, developed through advice from over 1,000 comments, will be available for us all."

The retail expansion in particular is in line with the strategies of other "cult" brands such as NYX that are looking to engage consumers with enhanced shopping experiences that boost their omnichannel strategy, while also offering brand building, awareness, sales and consumer loyalty.

 

 

“Thank you for being a part of this story—the reason for our being—and for writing this book with us. I believe it's still only just the beginning.” Our Founder + CEO @emilywweiss announces Glossier's latest round of funding and the next stage of our growth on @intothegloss ����

A photo posted by Glossier. (@glossier) on Nov 30, 2016 at 2:59pm PST

 

Glossier was founded in 2014 as "a content driven, vertically integrated beauty brand that fundamentally redefines the way customers can interact with and understand beauty." Since that time, the brand raised $8.4 million in series A funding led by Thrive Capital.

Today, the company has a bit more than 55 staffers, and Weiss still believes "Glossier is cult, it's not niche."

Eric Liaw, general partner at IVP, commented on the firm's site that there were several reasons why Glossier was such an attractive investment, including:

  • Consumer engagement: Glossier has gotten women to open up about their beauty habits and needs and translated that knowledge into products that build consumer loyalty.
  • Mobile mastery: Glossier's social media channels feature high consumer engagement that has made it a mobile-first brand. And that, in this millennial-obsessed world, is pure gold.
  • Disruption: Glossier has created a new kind of beauty company by tweaking products based on consumer feedback and keeping directly connected to its consumers to optimize its brand. As Liaw said, "Just this fall, [Glossier] completely overhauled their bestselling Generation G Sheer Matte Lipstick formula using feedback from thousands of customers. Soon their newest product, Priming Moisturizer Rich, developed through advice from over 1,000 comments, will be available for us all."

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