Glossier's Era Of venture capital Hype May Be Over and ramifications for the beauty and VC industry
Glossier has regressed from cult status to cautionary tale, and now its valuation has come back to Earth. At its peak, the millennial beauty brand had a valuation of nearly $2B with a cap table that included top-tier venture capital funds such as Sequoia, Thrive, Index, and Forerunner which poured $266M into the company. Now, it's raising more capital at a depressed valuation 'south of a billion dollars.' It's a signal of broader changes in the beauty landscape.
Puck reported on Wednesday that multiple people with knowledge of the situation and access to its latest deck said that Glossier aims to raise $100M and potentially sell significant secondary shares from existing investors, which would give a new investor substantial minority ownership. The company aims to bring in investors and board members with a better understanding of the beauty industry. Last year, Glossier hired bankers to explore a potential sale. While there was a brief flirtation with LVMH, nothing materialized.
Multiple sources, including Business of Fashion and WWD, have noted Glossier's ongoing struggles with profitability. In 2022, the company laid off over 80 employees (about one-third of staff), citing the need to refocus on core operations and streamline its path forward. In 2023 and 2024, it pivoted further from DTC and leaned more into wholesale partnerships with Sephora, SpaceNK and Mecca, a move often driven by the need to stabilize cash flow and reduce CAC (customer acquisition costs).
Glossier's sky-high valuation — $1.8B in 2021 — was less about current revenue and more about the belief it could scale like a tech platform. The company often referred to itself as a 'technology company' in press and investor conversations. It invested in building an internal tech team early on, signaling ambitions beyond product development, and its investors had tech-level expectations for scale, data, and margins.
There were quiet attempts to build more platform-like features, such as a Glossier app and talk of evolving the site into a more social, shoppable experience though these never fully scaled.
Glossier and the beauty industry broadly have been impacted by Gen Z's different expectations of brands. Gen Z consumers expect more transparency, inclusivity, and they like to discover TikTok-native brands. Their spending habits are shifting amid recession concerns and there's been an increase in dupe culture. Finally there's been a noticeable increase in the impact of creators and decentralized trendsetting vs. centralized brand narratives. Individual content creators, influencers, and even everyday users on platforms like TikTok and Instagram are now the ones driving trends in real time, not brands. When a TikTok creator with 50k followers posts a rave about a $7 dupe, it sells out overnight. These trends are organic, unpredictable, and often happen outside brand control. The 'decentralized' part means that no single authority (like a brand or media outlet) is dictating what's cool anymore.
TikTok Beauty Influencers
TikTok
Beauty brands aren't really tech companies – perhaps that's why tech companies that operate in the beauty vertical (such as Perfect Corp which went public) define themselves as beauty tech whereas beauty brands can't make that distinction. Even if a beauty brand sells products online and engages in digital marketing, that doesn't make it a tech company and tech VCs are not the right fit for beauty brands.
First, beauty brands simply cost less to operate than typical software companies. There are fewer high-cost software engineers and there are decades of manufacturing services and infrastructure investment making prototyping inexpensive compared to tech companies. Second, alongside unicorn status of a beauty brand comes a continued expectation of rapid growth, which is largely unsustainable for consumer businesses. It has taken P&G 183 years to build 22 billion-dollar brands and it does not have a deca-corn ($10B+) brand, which does exist in the tech world. Effectively, there is a natural ceiling for scale in DTC. Finally, the more money raised, the higher the 'floor' is for a successful exit. If you raise $100M from investors, you need to exit for $100M just to pay back the investors. The same exit, having raised only $50M, would leave some profits on the table, even in the event of a down round. As the floor increases, alignment between shareholders begins to separate. A down round becomes financially equivalent to a shutdown to all but a few shareholders since most will receive zero returns. Effectively, the teams become incentivized to 'go big or go home' regardless of the probability of success or if the company/category can handle that level of growth or scale.
VCs and acquirers have learned many lessons via Dollar Shave Club, Glossier, Charlotte Tilbury, Oddity Tech, K18, and Deciem. Most importantly, they learned that you cannot just throw money at a beauty brand and expect it to scale in a sustainable way.
Although Forerunner got lucky with Dollar Shave's $1B exit to Unilever, that was a mirage. Unilever isn't jumping to acquire another VC darling. Unilever's acquisition of Dollar Shave Club is widely considered a failure, with Unilever eventually selling it to Nexus Capital Management. The acquisition, which cost Unilever $1 billion, struggled to meet expectations, with the company citing declining performance and a fiercely competitive market. Beyond one viral video, the reality was that Dollar Shave didn't have anything proprietary (it outsourced it razor from Dorco), wasn't profitable and had a high CAC with high churn, and had no point of difference (any brand can offer a subscription and many did via DTC and/or Amazon).
K18 developed a unique peptide, K18Peptide™, designed to repair hair damage at a molecular level. This biotechnology-driven approach set K18 apart in the haircare market, offering scientifically backed solutions that resonated with both professionals and consumers.
Since its launch in 2020, K18 experienced significant growth, achieving $300 million in sales in 2023, with projections of $410 million for 2024. Additionally, it successfully penetrated professional salons and secured retail partnerships, including distribution through Sephora. This established distribution network provided a broad customer base.
These factors collectively made K18 an appealing acquisition for Unilever, facilitating the brand's swift integration into Unilever's portfolio. Although its acquisition happened fast, it wasn't a unicorn and its valuation was 6X its sales.
K18 promotional image
k18
Oddity Tech (ODD), an Israel-based DTC cosmetics and self-care products company, went public in a Nasdaq offering and its shares jumped in its trading debut on the NASDAQ Stock Market on Wednesday, July 19, 2023. It started trading at $49.10, well above its initial public offering price of $35 a share, according to FactSet. The opening price confers upon the company a market capitalization of roughly $2.8 billion. As of the publication of this article, it's trading at $40.8.
Unlike most tech or consumer IPOs, Oddity is profitable, with net income of $38.3 million and revenue of $399.76M million in the twelve months ending March 31, 2023. Revenue is also growing fast, surging 46% in 2022 to top $320 million with most sales coming from Il Makiage, Oddity's flagship makeup brand. Il Makiage was the fastest-growing global beauty DTC platform from 2020 through 2022, per Women's Wear Daily. Its moat is a full-stack innovation play (AI shade matching, proprietary formulas, proprietary biotech ingredients, and proprietary hyperspectral facial imaging technology).
Glossier used the language, logic, and structure of tech startups to grow fast and raise money—but didn't always build the defensible tech or IP that companies like Oddity Tech or K18 have. Additional capital could give it a reset and a rebirth or just give it a longer runway.
However for its VC investors, the buck stops at an exit. Valuation increases are short-term wins, but the only metric that counts is cash returned, invariably from a sale or IPO. When the market appears less interested in purchasing unicorn companies and the bar for attractive exits keeps rising, as it has been in the last year, most shareholders will not find the outcome they were hoping for. Thus, the unicorn exit becomes a mirage.
Despite recent fallouts of hyped VC-backed beauty and consumer DTC brands, DTC sales are continuing to grow. According to eMarketer's forecasts, e-commerce sales will grow by 8.8% in 2024, reaching a total of $6.3 trillion globally. Smart beauty and consumer brands usually have a moat to forge ahead:
Let's canonize consumer brands that should be celebrated for becoming profitable and achieving successful exits. In order to do that, we need to refocus on important metrics such as a customer's lifetime value instead of getting seduced by fluffy hype. To put things in perspective, we must think about what revenue numbers mean with respect to the amount of money raised by a company. Operating efficiency matters. Is it smart to be impressed with companies that grow at a loss while only hoping their lifetime value of customers eventually offsets customer acquisition costs? Let's give credit to the camels that can weather droughts and recessions—not the unicorn mirages that raised too much venture capital too fast at inflated valuations.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Upturn
7 minutes ago
- Business Upturn
Real Money Online Casinos Canada 2025: Frumzi Expands Live Games Category
Vancouver, June 21, 2025 (GLOBE NEWSWIRE) — Frumzi Casino, a rapid-growing real money online casino in Canada, has announced the expansion of its catalogue of live dealer and live shows games, in order to bring new and exciting a renovated live gambling experience. According to Frumzi, after online slots, the live casino section is the most popular choice on their platform, and therefore, the brand has decided to make strategic partnerships with live casino providers to add dozens of new games to this important section inside their catalogue of real money games. In addition, Frumzi has released new bonuses and promotions specifically designed for players who prefer live dealer and live shows games, such as a 100% extra first deposit bonus + $300 CAD surprise bonus + 200 Free Spins to play online slots, just to add more diversity and fun to players' online gaming sessions. Other promotions include live casino cashback, weekly reload bonuses and weekend reload bonuses, as well as free cash rewards, which according to Frumzi, is going to equip players with all the necessary features and tools to take the quality of their live gambling sessions to the next level. To learn more about Frumzi's new live casino games and bonuses, visit the official website. Frumzi has announced all the new live casino games and bonuses are available from today, giving new and registered players the opportunity to try out the new live gambling experience offered by this real money online casino. Frumzi Aims At Becoming the Top Choice for Game Variety Amongst the Best Real Money Online Casinos in Canada According to Frumzi, their goal is to stand out in key aspects in comparison to the rest of real money casino sites currently operating in Canada, and one of the most important areas is game variety, especially as Canadian players learn more about the different types of games and experiences available at global online casinos. Therefore, Frumzi believes it is key to import such experiences into Canada, in order to make the national online gambling industry grow and thrive responsibly, which is why the brand has decided to renovate its selection of live casino games, now offering players over 18 years old access to dozens of new titles from the best providers in the industry. Recently, Frumzi also expanded its catalogue of online slots and instant games, and to continue their trend of growing in game variety, they decided to invest into one of their most popular sections, which is live casino. All new and registered players who visit Frumzi Canada today and explore the live casino section, are going to find new games such as Gravity Roulette, Gravity Blackjack, Balloon Race Live, Gonzo's Treasure Map Live, Video Poker First Person, Super Color Game Live, Immersive Roulette Live, Crazy Balls Live, Caribbean Stud Poker Live, Three Card Poker Live, Lil Devil, Blackjack Party, amongst others. Frumzi has taken care of adding live dealer games in different sub-categories such as roulette, poker, video poker, shows and blackjack, in order to offer players the type of game variety they are looking for. After the recent expansion of its catalogue of live dealer games, Frumzi Casino now offers over 200 different titles in this category, sourced by the best providers in the industry such as Playtech, Evolution Gaming and Pragmatic Live. To learn more about Frumzi's new live casino games, visit the official website. Frumzi Has Launched New Bonuses to Compete with the Top Real Money Casino Sites Along with the introduction of new live casino games, Frumzi has also released new bonuses and promotions specifically designed for this section such as a live casino cashback, weekly cashback, weekly reload and weekend reload bonuses. Frumzi believes that offering generous bonuses is as important as offering outstanding game variety, and this is why they have decided to reward new and registered customers accordingly, and in addition, the brand has also announced the reduction of the rollover requirement, making it even easier for players to wager the bonuses through live casino games and cash out the winnings. Furthermore, the brand has revealed plans on adding more bonuses specifically designed for live casino, such as a bigger cashback bonus, free chip bonuses and access to exclusive free-to-play tournaments with real money rewards. All the new promotions and bonuses are available starting today, which players can claim by visiting the official Frumzi website. Frumzi Renovates Its Mobile Website to Offer an Outstanding Live Casino Gaming Experience With the goal of offering live casino players an outstanding gambling experience on mobile – without interruptions and at a seamless pace – Frumzi has invested into improving their mobile website, to make it faster and offer improved support across all iOS and Android mobile devices. Frumzi reports that 60% of its users access the platform via mobile devices. In response, the brand has prioritized improvements to its mobile website, particularly ahead of the rollout of new live casino games. With an expected increase in traffic, enhancing mobile performance has become essential to ensure a smooth and reliable user experience. Therefore, all new and registered customers who visit the official Frumzi website to play the new live dealer games are going to find a faster and more reliable mobile website, which has been renovated to offer a better mobile gambling experience. To learn more about Frumzi's new live dealer games on iOS and Android, visit the official mobile website. The New Real Money Live Dealer Games Are a Key Part of Frumzi's Ongoing Platform Upgrade Strategy Frumzi recently expanded its online slots and instant games offerings as part of its ongoing efforts to enhance the platform. In parallel, the brand has introduced new bonuses and promotions aimed at providing both new and returning players with compelling reasons to engage regularly. These updates support Frumzi's broader goal of increasing new customer conversions while strengthening retention among existing users. The introduction of new live dealer games, alongside the recent additions to the online slots and instant games categories, is part of a coordinated upgrade at Frumzi. Combined with renovated promotions, bonuses, and rewards, these enhancements are designed to attract more website visitors and convert them into active, registered players. Frumzi recognizes the growing level of competition amongst real money casino sites in Canada, and therefore, it is increasing its budget for marketing, product development and bonuses, as the brand believes those are the three pillars which are going to propel the brand's visibility and presence in the country. Therefore, Frumzi offers a new online gambling experience starting today, thanks to its catalogue of 8,000+ real money games, generous bonuses, total mobile support and on-going rewards. Frumzi Now Welcomes Small Deposits for Players Interested in Playing New Live Casino Games Frumzi is aiming at welcoming more players, especially the users who want to try online gambling but they are put off by the high minimum deposit requirements of most real money casinos in Canada. Therefore, the brand has decided to lower their minimum deposit requirement, now welcoming deposits in the range of $1 to $5, bringing players the opportunity to play real money games and earn real cash rewards with small deposits. Furthermore, Frumzi has confirmed that all players can claim the new bonuses and promotions for live casino games with small deposits, hence, players can take advantage of deposit bonuses, cashback and extra rewards even if they only deposit $1 CAD. Therefore, all players who visit Frumzi and create an account can make a small deposit to start playing all the new games available on the catalogue. Frumzi Implements New Responsible Gambling Solutions Live dealer games bring a different kind of energy because they feature fast rounds, real-time interaction, and an immersive atmosphere that makes it easy to lose track of time. Therefore, Furmzi has implemented key responsible gambling solutions and measures to prevent problem gambling. The platform now offers players more intuitive tools to stay in control, from adjustable deposit limits and session timers to wager caps and optional time-outs. These features aren't tucked away because they're introduced from the start, so players know exactly where to find them when they need them. Behind the scenes, the platform has improved how it tracks gameplay patterns, especially during live sessions. If someone starts playing longer than usual or wagering beyond their typical range, the system responds quietly, offering a friendly check-in or a nudge to take a short break. The goal isn't to block enjoyment, but to support it in a way that feels fair, personal, and non-intrusive, because Frumzi believes this is the unique way by which the online gambling industry can thrive in Canada. To learn more about Frumzi's new responsible gambling tools, visit the official website. About Frumzi Frumzi is a Canadian real money online casino owned by one of the most prestigious online casino platforms in the world, Soft2Bet. Licensed by the Curacao Gaming Control Board and audited by third-party independent firms, Frumzi is synonymous to fair, responsible and legal online gambling. Offering over 8,000 real money games, big bonuses, total mobile support and fast same-day withdrawals, it is one of the top choices in the Canadian online gambling industry nowadays. Disclaimer & Affiliate Disclosure The information presented in this article is intended for general informational and promotional purposes only. All content, including but not limited to game listings, bonus offers, product details, statistics, and platform features, has been sourced from publicly available materials or official brand communications believed to be accurate at the time of publication. However, no guarantee is made regarding the completeness, accuracy, or currency of the information provided. Errors, outdated promotions, or misstatements may occur unintentionally. Neither the publisher of this release, its authors, nor any affiliated syndication partners shall be held liable for any direct or indirect loss or damage arising from reliance on the information contained herein. Users are strongly encouraged to visit the official Frumzi website to verify all offers, terms, conditions, and game availability before engaging in any gambling activities. This article may contain affiliate links, and the publisher may receive financial compensation if visitors click on these links and subsequently make a deposit or purchase. This compensation does not influence the editorial integrity or independence of the content. The content does not constitute legal, financial, or gambling advice. Online gambling carries financial risk and is not suitable for all individuals. Participation is restricted to those 18 years of age or older (or the legal age in their jurisdiction). All users are responsible for ensuring that any activity they undertake is legal in their region and that they comply with applicable laws and regulations. Frumzi Casino is licensed by the Curacao Gaming Control Board and operates under the regulations of that jurisdiction. Gambling can be addictive; please gamble responsibly. If you or someone you know is experiencing signs of problem gambling, seek support from a certified organization. By reading this article, you acknowledge and accept that the publisher and all affiliated parties—including distributors, content platforms, and syndication networks—are indemnified from any legal claims, disputes, or liability arising from the use, misuse, or interpretation of the content provided. For the most accurate and up-to-date information, please refer to the official Frumzi Casino website. Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same. Ahmedabad Plane Crash
Yahoo
4 hours ago
- Yahoo
‘I just want finality': GOP greets newest TikTok extension with resignation
President Donald Trump's latest move to keep TikTok alive is yet again frustrating congressional Republicans, many of whom object to China's continued involvement in the popular app but just want to be done with the whole drama. 'Not my favorite thing,' Sen. Josh Hawley (R-Mo.), along-time proponent of the ban, deadpanned, when asked about the president's plan to issue another extension. He spoke a day before the White House confirmed Trump signed a 90-day suspension of enforcement of the law requiring TikTok to divest from ByteDance, its China-based parent company, throwing another lifeline to the short-form video app. By Friday, some House lawmakers registered a note of resigned irritation. The extension — Trump's third since the law went into effect on Jan. 19 — is a unilateral decision not envisioned in the bipartisan law passed by Congress and upheld last year by the Supreme Court. Rep. Darin LaHood (R-Ill.), a member of the House Intelligence and China committees, told POLITICO. 'The national security concerns and vulnerabilities are still there, and they have not gone away. I would argue they've almost become more enhanced in many ways." But Trump's extension of the TikTok law largely boxed out Republicans in both chambers who have shown little inclination — beyond stern words — to prevent him from making these postponements almost routine. Many GOP lawmakers saw themselves as granting the president space to cut a promised deal while the White House deals with urgent priorities, like trade negotiations and the Israel-Iran conflict. 'In light of everything going on, I think he did the right thing,' Sen. John Kennedy (R-La.), a China hawk who voted for the ban, told POLITICO of Trump. 'I have concerns about all kinds of things — that [the extension] is on the list — but it's not at the top of the list.' Though Trump has promised his TikTok negotiations areclosely tied to trade talks with China, Treasury Secretary Scott Bessent testified last week to a Senate panel that TikTok's sale wasnot currently a part of the negotiations with China, raising a further potential obstacle to Trump inking a deal in the near future. Sen. Lindsey Graham (R-S.C.), a close ally of the president and longtime national-security hawk said earlier in the week: 'The sooner we get that issue solved, the better,' without offering any ideas for further enforcement. 'I just want finality,' Senate Judiciary Chair Chuck Grassley (R-Iowa) told POLITICO. 'I want some certainty and just know that the Congress isn't being played when we make a decision [that the app] be sold.' Another member of the House China Committee, Rep. Zach Nunn (R-Iowa), told POLITICO, 'No more extensions. It's time to follow through.' Rep. Dan Newhouse (R-Wash.), also a member of the China panel, noted in a post on X Thursday the law only allows one extension of the compliance deadline, adding, 'I was proud to support the ban of TikTok and believe the law should be implemented as written.' With their comments, the lawmakers echoed House China Chair John Moolenaar (R-Mich.), who in early June called for the U.S. to 'let [TikTok] go dark' to bring China to the table to negotiate. He reiterated that stance on Friday. 'Delays only embolden the Chinese Communist Party,' Moolenaar said in a statement to POLITICO. 'I urge the administration to enforce the law as written and protect the American people from this growing national security threat." Still, observers say Republicans are not exercising their leverage to demand the White House enforce the law they helped write, for example by withholding funding or congressional oversight hearings. "I keep reading that Republicans are 'frustrated' and 'impatient' about their TikTok law being ignored, but they should stop complaining to reporters and take it up with Trump,' said Adam Kovacevich, founder and CEO of the pro-tech Chamber of Progress. Among the Republicans being undercut by the president is his own secretary of state. Marco Rubio — who as senator was one of the loudest critics of TikTok's ties to China, and a huge backer of the app's ban — has been conspicuously silent as Trump has repeatedly granted more time to strike a deal for its sale. 'You have to decide what's more important, our national security and the threat that it poses to our national security,' Rubio told POLITICO in March 2023, as Congress was considering a ban. 'You have to weigh that against what you might think the electoral consequences of it are. For me, it's an easy balancing act. I mean, there is no balance. I'm always going to be for our national security.' A spokesperson for Rubio at the State Department did not respond to a request for comment. Democrats — even those who support keeping TikTok online — say Trump's approach is the wrong one. 'These endless extensions are not only illegal, but they also put TikTok's fate in the hands of risk-averse corporate shareholders,' Sen. Ed Markey (D-Mass.) told POLITICO in a statement. 'This is deeply unfair to TikTok's creators and users. I'm prepared to work towards a solution, but Trump isn't coming to the table.'
Yahoo
4 hours ago
- Yahoo
Meta Warns Iran May Block WhatsApp Amid Snooping Allegations
Meta (META, Financials) expressed concern that Iran may move to block WhatsApp following claims by Iranian state media that the messaging platform is being used by Israel for surveillance. The U.S. tech company strongly denied the allegations, calling them false reports, and warned they could be used as a pretext to restrict access to its services at a critical time. Warning! GuruFocus has detected 4 Warning Sign with META. Meta said, We're concerned these false reports will be an excuse for our services to be blocked at a time when people need them the most. The company emphasized that WhatsApp uses end-to-end encryption, meaning that neither Meta nor third parties can access the contents of messages. It also clarified that it does not track users' exact locations or log who is messaging whom. The statement came in response to Iran's state-run IRNA urging citizens to delete WhatsApp, claiming the Zionist regime is exploiting the app to gather private data. In a broadcast shared by Rudaw, an IRNA host warned viewers about potential surveillance targeting individuals linked to sensitive sectors, including nuclear science. While Meta confirmed it does not provide bulk data to any government, it acknowledged that metadatasuch as contacts and device informationcan be shared under specific legal requests. Meta also pointed to over a decade of transparency reports outlining such disclosures. WhatsApp, along with Instagram, was previously banned in Iran in 2022 during nationwide protests. That ban was lifted two months later as part of reforms introduced by President Masoud Pezeshkian to expand internet freedoms. This article first appeared on GuruFocus.
