New York fashion cosmetics start-up company in 2018

New York fashion and cosmetics start-ups received a 30% increase in total venture capital in 2018, reaching a record $612 million. The fashion and cosmetics start-ups in New York are being sought after by investors. According to Pitchbook, a financial data company, total venture capital for fashion and cosmetics start-ups in New York increased by 30% year-on-year in 2018, reaching a record $612 million. Up to now, the latest total financing of these companies has reached 349 million US dollars in 2019. This year's total financing is expected to reach a new high. In the past two weeks, two cosmetics and fashion start-ups have been valued at more than 1 billion US dollars and become the so-called "unicorn":

In March, the Internet cosmetics brand Glossier announced that it has completed the D round of 100 million. Dollar financing, valued at $1.2 billion. (See the historical report of Glorious Chronicle: annual sales break through 100 million US dollars, new financing 100 million US dollars! Glossier's latest valuation is 1.2 billion US dollars)

Glossier founder Emily Weiss launched a beauty blog named "Into The Gloss" in 2010 and established a large number of loyal fans through the blog. In 2014, Glossier, the Internet makeup brand, emerged on the basis of the blog, and was supported by Forerunner Capital, a female-led private equity fund, at the beginning of its establishment.

Glossier is famous for its first-rate original products in four categories of skin care, beauty makeup, body care and perfume. It has quickly become a new force in the global cosmetic market through consumer oriented brand building.

Rent the Runway, an American Internet clothing rental platform, announced that it had completed a new round of financing of 125 million US dollars, with a valuation of more than 1 billion US dollars.Rent the Runway was founded in 2009. The company initially offered customers the service of renting dresses for banquets, weddings and other occasions. Consumers can rent high-end dresses for only about 10% of the total price. In 2017, Rent the Runway launched a monthly clothing rental service. Like Glossier, Instagram is also an important marketing position for Rent the Runway. In the words of the co-founder, Rent the Runway's information flow on Instagram is like an "infinite wardrobe," where people of all shapes and shapes publish photos of themselves wearing rented clothes from the platform on the social media platform. Scott Friend, a partner of Bain Capital Ventures, one of the investors in Rent the Runway, said that successful social media marketing strategies enabled these start-ups to surpass traditional businesses lacking digital marketing. Glossier and Rent the Runway are attractive to capital because they both have an enthusiastic fan base, which gives them a huge competitive advantage, he said. Therefore, when these companies are still in a very early stage of development, investors have a great enthusiasm for their investment.

Emily Weiss said that there has been a huge demand for women-centered businesses in the market, but until recently there has been an effective investment in cosmetics and other fields. "For a long time, although these start-ups have huge markets and loyal customers, people have always thought that such enterprises are not subversive enough to innovate the industry. But as the types of venture capital become more diversified, we also see many successful cases and believe that this view will change, "Emily Weiss said. Jennifer Hyman, co-founder of Rent the Runway, also agreed: "New York will be the place where more innovative, new generation fashion and cosmetics companies start and develop." With the exception of Glossier and Rent the Runway, PitchBook's data show that Zola, an Internet wedding company, and Moda Operandi, a high-end fashion e-commerce, are currently valued at nearly $650 million.

From March 26, 2013 to March 26, 2019, New York and other states in the United States increased the amount of venture financing for fashion and cosmetics start-ups. New York, the birthplace of fashion Internet "unicorn" from the founding of New York Fashion Week in 1943 to the founding of Vogue magazine, and then gathered local high-end brands such as Coach and Ralph Lauren. The Fifth Avenue luxury shopping district, New York, has a long history as a global fashion capital. This city has gathered many famous designers, cosmetics experts and top scientific and technological talents. According to PitchBook, it is based on the urban climate of New York that seven of the 13 existing fashion "unicorns" in the United States come from New York City. Pat McGrath Labs, a makeup brand developed as a "unicorn" last year, was founded in 2016 by Pat McGrath, a top makeup artist. It has become the sales champion of Sephora, a cosmetics retailer chain, relying on popular products such as Gold 001. In July last year, the brand was eliminated by Eurazeo, a French investment company.