Madison Reed Raises $12 Million Series B Led by Norwest Venture Partners
Company Taps Power of E-Commerce Innovation to Bring Salon Experience to the Home
SAN FRANCISCO, January 28, 2014-- Madison Reed announced today that it has raised $12 million in a Series B round of funding led by Norwest Venture Partners (NVP) to revolutionize the at-home hair color experience. Previous investors, True Ventures and Maveron, also participated in this round. The company, which launched today, leverages e-commerce technology to deliver salon-quality hair coloring formulas, immediate, personalized hair assessment, and at-home delivery to consumers.
"We found a way for women to have it all—the premier salon experience they deserve with the at-home convenience they need," said Amy Errett, Madison Reed CEO and co-founder. "This investment enables us to make quality and ease in hair coloring a reality for any woman. We will continue to create a superior product and have technology enable the best customer experience, from custom online consultations, and certified trained colorists that are on-call, to a mobile app that lets customers shop from anywhere and apply color formulas hands-free."
Madison Reed capitalizes on two major trends: a growing health and beauty industry, and rapid e-commerce innovation. A 2012 IBISWorld report shows that at $10 billion, hair color is the largest fast-growing major category of salon products. Currently, 90 million women in the U.S. color their hair, each spending $330 annually, but they are limited to an expensive and time-consuming visit to the salon or to chemical-filled at-home treatments. Meanwhile, consumers at large are increasingly shopping online. This holiday season alone, online shopping grew 9.3 percent to $95.7 billion, accounting for more than 15 percent of all sales.
"The beauty industry is ripe for innovation and hair coloring in particular has long been divided between elite salons and low-quality do-it-yourself boxes," said Jeff Crowe, NVP managing partner. "The Madison Reed team has developed a completely new approach by pairing the power of technology and e-commerce with new advancements in hair treatment products to open the door of a tremendous market opportunity."
Madison Reed is an easy, home application process that doesn't sacrifice coloring performance. The ammonia- and resorcinol-free hair coloring formula was created by salon experts with more than 30 years of experience in the hair coloring industry. Its 27 pre-mixed multi-tone shades have undergone 2,000 hair tests on models of all hair types and been analyzed under three separate light sources. Today, it is hand-crafted in Italy, and used by famed stylist Sally Hershberger, making it the only at-home hair color that's available in salons.
The company taps the full power of e-commerce to give an immediate, personalized coloring experience. Customers can find the right shade using Madison Reed's online and mobile Color Translator or Color Advisor tools, or get live feedback from a team of certified Color Crew colorists. When the $29.95 formula arrives in a Madison Reed's re-invented application kit, customers can watch how-to videos online or through the Madison Reed iPhone app to apply it to their hair. Then, customers can set a delivery schedule so that they never have to worry about their next salon appointment or hunt through a drug store again.
Madison Reed is headquartered in San Francisco, and previously raised a $3.9 million Series A from True Ventures and Maveron in April 2013. Amy Errett is also a Special Advisor at True Ventures, where she supports more than 250 entrepreneurs as they build their own innovative companies.
"Madison Reed is using technology to make personal care more personal, elevating the customer experience to make her feel beautiful inside and out in a market that has thus far seen little innovation, and the response has been overwhelming. We are thrilled to continue our support behind Amy Errett's dynamic leadership and incredible energy. She is truly a Founder of a movement, and it's an honor to have Madison Reed as part of the True portfolio," says Jon Callaghan, True Ventures founder and Madison Reed board member.
For additional information, visit www.Madison-Reed.com or call 888.550.9586
Madison Reed, the next revolution in "in-home" hair color, was born from an aha moment in 2013 by CEO and Co-Founder Amy Errett, a leading entrepreneur, senior executive and venture capitalist, who realized we no longer needed to be held hostage to the tedious routine and expense of going to the salon for professional grade hair color. Having long been obsessed with categories that have limited to no innovation, Amy looks for what she doesn't see to deliver superior service. This passion is what ignited the spark for Madison Reed. Fast forward to today, and the permanent hair color line boasts 27 pre-mixed multi-tonal shades that are salon quality with a formula that delivers unparalleled depth and shine (it's also ammonia- and resorcinol-free). The fade-resistant color is sent in a complete in-home coloring kit and delivered to your door. You can also book a stylist who will be sent to you to make color selection and teach you how to apply the color – in select locations so far, but we're growing. Still afraid to color your hair at home? We've developed entirely new ways of finding your perfect permanent hair color – choose from an online color advisor, mobile app, live web chat, digital photo consultation or speak to a trained colorist on the phone. All of this is what makes the Madison Reed "in-home" coloring experience superior to the traditional way of coloring your hair at home. And we don't just claim to be salon quality. We are salon quality. Just ask Advisors, famed stylists Sally Hershberger and Alex Chases. Madison Reed is being used in high-end salons, making it the only in-home hair color that's used by professional colorists in their salons. Headquartered in San Francisco, Madison Reed is backed by top-tier venture capital firms True Ventures, Norwest Ventures, and Maveron, co-founded by Starbucks CEO Howard Schultz. http://www.Madison-Reed.com
About Norwest Venture Partners
Norwest Venture Partners (NVP) is a multi-stage investment firm that has partnered with entrepreneurs to build great businesses for more than 50 years. The firm manages more than $3.7 billion in capital and has funded over 500 companies since inception. Headquartered in Palo Alto, Calif., NVP has subsidiaries in Mumbai and Bengaluru, India and Herzelia, Israel. NVP makes early- to late-stage venture and growth equity investments across a wide range of sectors including: technology, information services, business services, financial services, consumer products/services and healthcare. For more information visit: www.nvp.com.
About True Ventures
Founded in 2005, True Ventures is a Silicon Valley-based venture capital firm that invests in early-stage technology startups. With three funds and approximately $600 million in capital under management, True provides seed and Series A funding to the most talented entrepreneurs in today's fastest growing markets. With a mission to make the world a better place for entrepreneurs, True encourages each founder's vision and has built resources to empower the employees, families and communities of its portfolio companies. The firm maintains a strong founder community and offers innovative educational opportunities to its portfolio, helping entrepreneurs achieve higher levels of success and impact. With more than 150 companies funded and multiple companies acquired, the True portfolio has helped create over 3,000 jobs. To learn more about True Ventures, visit www.trueventures.com.
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