Beauty incubator Beach House Group is launching a venture arm to make minority investments in emerging, founder-led brands.
Beach House Ventures (BHV) will offer all the financial benefits of a private equity firm, said the brand builder, with the addition of a shared service platform, brand-building expertise and global retail relationships.
It will be “a source for invaluable navigation and comprehensive support at every possible level,” said the company, from scaling a brand to eventual exit.
BHV plans to invest between US$2m and $10m in deals over the next few years.
Beach House Group was founded in 2018 by entrepreneurs Shaun Neff and PJ Brice and is set to surpass $250m in annual revenue from its homemade brands.
The incubator is the brains behind celebrity beauty brands Moon Oral Beauty with model Kendall Jenner and Florence By Mills with actress Millie Bobby Brown.
The new venture arm will expand on the group’s current success and take its beauty funding and brand building to “a new frontier”.
The Los Angeles-based firm is looking for brands that would live in retailers Sephora and Ulta Beauty and have a “unique” founder story to tell.
This includes those with success in “garnering engaged communities [and] innovative products that show promise and exhibit market differentiators”, said the company.
Neff commented: "Like me, BHV is not your traditional venture group.
"We know what it is like to be entrepreneurs. We understand the hustle and the struggles.
“We are in the rare position to give visionary founders a once-in-a-lifetime opportunity to scale a global business.
“With our experience and our solid network – from retailers to talent – we are super excited to be the rocket fuel behind the founder."
Brice added: “We are ready to find and work with the next generation of entrepreneurs to take their business to the next level.”
The company is already in conversations with brands in the clinical skin care, cosmetics and sunless tanning markets.