The British Beauty Council has partnered with Venrex Investment Management to launch Venrex BBCo.
The fund is an investment aimed at early-stage beauty businesses with high growth potential.
It aims to propel British beauty founders who are “rethinking the future of the industry”.
Venrex, historically, has been a backer of make-up brands including Charlotte Tilbury and Lisa Eldridge.
The council said it is hoping to bridge the funding gap for innovative beauty start-ups, particularly those led by female founders.
“The beauty industry is unique in the fact that it sits at the intersection of creativity, innovation and commerce”, said Millie Kendall OBE, CEO of the British Beauty Council.
“By combining Venrex’s unmatched expertise of the funding environment, with the Council’s industry insight, I am confident that we will support businesses from across the wellness and personal care sector that are pushing industry boundaries when it comes to formulations, environmental impact, and entrepreneurship.”
This latest venture reflects what the British Beauty Council says is its commitment to fostering growth in the UK’s beauty sector, which currently contributes £27.2bn to the economy, a figure expected the council say is to rise to £28.1bn by 2024.
The council said the fund will target a diverse range of companies across the wellness and personal care spectrum.
Adding that this could range from those revolutionising product formulations to innovators in packaging and supply chain efficiencies.
Founders will gain access to strategic resources, mentorship and financial backing to accelerate their growth in a competitive market.
Josie Buck, Principal of Venrex, emphasised the fund’s goal to reinforce the UK’s reputation as a beauty powerhouse.
She said: “British beauty is known globally for its creativity and wealth of start-up businesses.
“We are excited to collaborate with the British Beauty Council on this fund to support what we hope can be some of the UK’s highest growth beauty-related businesses.”
“Our experience as investors in businesses, such as Charlotte Tilbury, Lisa Eldridge, Vieve, Get The Gloss and Frog Stack, have shown us that the UK creative sectors and their entrepreneurs are world class.”
“While not all beauty businesses will suit venture capital’s high growth business models, we feel this fund can complement the already significant leadership role that the British Beauty Council plays in a hugely impactful UK industry.”