Saturday, March 2, 2024
HomeVenture CapitalWhy we invested in Sourcerie. Sourcerie has raised a £1.8m pre-seed… |...

Why we invested in Sourcerie. Sourcerie has raised a £1.8m pre-seed… | by Jeevan Sunner | Playfair Weblog

Sourcerie has raised a £1.8m pre-seed spherical, from Playfair, Vorverk Ventures and strategic angels to construct the tech platform and personalisation software program for shoppers’ skincare, haircare, and bodycare wants

The way it began

I’ve been a skincare nerd since being identified with grownup pimples on the age of 21. After seeing a dermatologist, I felt misplaced and confused navigating an business stuffed with jargon, fairly packaging and intense advertising campaigns. It’s an area that I’ve at all times felt, as a client, wanted revolutionising….

After which we heard of Kristin Cardwell and Alex Beyer by means of our current Playfair portfolio founder — Mandeep Singh (thanks for the intro Mandeep 🙏).

We had been tremendous impressed with the founding workforce’s background starting from Palantir, Perform of Magnificence, L’Oreal, and Refinery29, to engineering levels from MIT, Cambridge, and Oxford, plus intensive expertise in tech, magnificence and scaling venture-backed companies. Coupled with their ardour for the area, we knew these are the founders to disrupt the established order in magnificence by serving to shoppers and suppliers apply goal, data-driven decision-making to their private care wants.

Founders Kristin Cardwell and Alex Beyer

The wonder business is failing its shoppers

Throughout the booming international magnificence business, skincare is a megatrend. Searchs for the time period on Google have elevated 350% over the previous 5 years, possible resulting from its affiliation with well being and wellness. As we speak, 20% of individuals purchase a number of skincare merchandise every month and pores and skin situations are among the many prime 10 causes for GP visits.

There over 25,000 international skincare manufacturers making an attempt to faucet into this main market. However that isn’t nice information for shoppers. Except shoppers’ pay for the companies of consultants or dermatologists, they’re left to coach themselves by means of manufacturers’ advertising groups or influencers, who’re financially motivated to suggest sure merchandise. Consequently, client are making high-risk, high-intent selections alone.

The outcome: a client overwhelmed by selection and data.

Sourcerie’s answer

Sourcerie is first constructing a personalised buying market between shoppers, retailers, and types the place shoppers can entry personalised suggestions based mostly on buyer suggestions and machine studying. Powered by datasets and advice algorithms, this degree of personalisation within the magnificence business is a gamechanger, enabling shoppers to make knowledgeable selections which have by no means earlier than been accessible to them with out the costly companies of a specialist.

Sourcerie will companion with trusted manufacturers, retailers, and distributors to supply all kinds of merchandise. Manufacturers will obtain related information about prospects and information insights from Sourcerie, which they may not obtain from different sellers, to proceed bettering their merchandise for shoppers.

Sourcerie touchdown web page

Our funding thesis

Sourcerie’s beachhead market — the worldwide skincare market — is predicted to develop at 5.2% CAGR over the following 5 years to achieve $189B by 2025. Their secondary market — the haircare market — will attain $105B in the identical interval.

Sourcerie is getting into the market at precisely the fitting second. Shopping for skincare on-line was jumpstarted by the pandemic and is turning into more and more regular, particularly amongst youthful shoppers. ‘Personalisation’ — matching merchandise which might be proper for the person — is a key development.

On the similar time, manufacturers’ buyer acquisition prices have risen dramatically since Fb and Google advert prices doubled in 2021. These tens of 1000’s of manufacturers are struggling to distinguish themselves to shoppers at an inexpensive value. It’s more and more troublesome for them to chop by means of the noise through internet marketing channels.

And eventually, D2C manufacturers personal and acquire their information, however after they promote by means of companions or resellers, they lose information oversight. They obtain little information about their shoppers, and what they do obtain is basically qualitative. Sourcerie is data-first. The insights on client behaviour and spending habits it may well provide manufacturers is invaluable.

Sourcerie’s founders have a powerful information and tech benefit that many founders within the magnificence business lack. This can be a compelling proposition for manufacturers who can not entry comparable information elsewhere, and for shoppers, for whom this degree of personalisation is unrivalled.

What’s subsequent

Sourcerie have formally launched their market and can be working intently with manufacturers to assist them service their prospects.

We’re tremendous excited to assist Kristin and Alex of their subsequent part of progress

A private notice

In the event you’re a founder on the very earliest phases of constructing your organization, you’ll be able to pitch the Playfair workforce right here. You possibly can observe the Playfair workforce on LinkedIn, Twitter, Forbes, Vimeo and right here on Medium.



Please enter your comment!
Please enter your name here

Most Popular

Recent Comments