How Social Media is fueling a new wave of beauty entrepreneurs

When writing about emerging startups, I like to extend my reach beyond well-versed verticals such as software, SaaS, and AI as much as I can. 

I recently sought out very early-stage startups, typically pre-funding, that clearly understood their market, customers, and the problem they were addressing. Dozens of founders contacted me, including makeup artist Katy Jane. 

Following a 14-year career as a makeup artist, Katy Jane is launching her own makeup brand, scattyzebra. Its distinctive business name is inspired by her vibrant DIY home decor in London, which saw bookings on her apartment listing on Airbnb book out, enabling her to double her price. 

The beauty and wellness market—which includes well-established global brands as well as emerging direct-to-consumer (DTC) startups— is ever-evolving. 

While the market is incredibly crowded with well-established brands, social media influencers, makeup artists, and vloggers are exposing consumers to their passion for skincare, makeup, and beauty to create new campaigns, partnerships, and opportunities for new businesses, such as scattyzebra. 

At the pivotal pre-launch stage, Katy's been building the company for the last year and is raising a quarter of a million to bring the first three products to market, which she aims to launch in February. 

Talking to Katy, I discovered some things about the beauty sector. Brands tend to get their products made in the same factories - many in what's been dubbed Beauty Valley, a part of Italy between the regions of Lombardy, Emilia Romagna, and Veneto.

Approximately 500 companies develop their wares in the region, which creates 60 per cent of eyeshadows, mascaras, powders, and lipsticks used worldwide.

Katy explained:

"I decided if it's all manufactured at the same place and if our formulas are similar, our packaging is the only thing different about us. So I even went even harder on the packaging." 

The packaging might be bright and eye-grabbing, but Scatty Zebra aims to start foundational products that appeal to "the everyday girl and mass market."

The company plans to release three (vegan) products yearly for five years, starting with a cream multi-use blusher that can be used on your lips and cheeks, followed by bronzer, mascara, and eyebrow gel. 

Katy is the makeup artist behind campaigns for Patrick Tarr, Primate Beauty, Revolution, and Neutrogena. She has an engaged social media following and offers beauty tutorials. 

As a makeup artist, she's seen brands come and go. She believes that makeup startups often fail by training too hard too early:

"I think the mistake makeup startups make is that they get a call from Selfridges or Sephora, and that's great, but you're only as quick as you are in, and you're out if you don't achieve the sales in-store from the get-go.

A distributor in the UK who had 72 stores that wanted to launch Scatty Zebra. This is my dream. But then I thought, "Wait. If I don't have an audience, and if I have no one who wants to buy my product and it's sitting on their shelf unsold, who's going to buy my next product or range?"

In response, Katy is starting with direct-to-consumer sales via a website with a waitlist for the product launch. She explained:

"When you launch, you want every customer to pay full price. Because every penny when you start is so important."

The company will start with per-item sales through its website. "With each launch, the packing will be a different pattern, a different story, and I'm just going to keep it unpredictable and exciting."

In terms of accessing her customers, Katy believes Gen Z and millennial consumerism are adventurous and set the trends. 

"Because of social media, people are trying more makeup than they've ever tried because they see a celebrity with a blue eyeshadow look, and everyone wants a blue eyeshadow look."

She plans to leverage her strong network of fellow makeup artists (including Kendall Jenner's makeup artist), and her clients and social media followers who love makeup and skin care. 

"That's the beauty of social media now. You have celebrities at the tip of your fingertips. You don't need to go through a PR agency. You don't need to have their email. I can just message them. This is critical for driving a new brand."

When it comes to accessing investors, Katy revealed she'd had "an incredible response. 

I live and breathe this industry and have seen many companies' mistakes because I think of artisans. I see the value of restraint, and I think this appeals to the investors.

For example, I did a campaign for a new brand, and they launched 20 foundations, and I thought, 'That's crazy.' Because that's 20 models, 20 different customers, and you'll still struggle to be inclusive."

While it's a full-time slog, she admits, "I bring a lot of knowledge, and I've had an excellent response. I've met a lot of beauty investors, and everyone knows someone else. That's how you build connections."

Katy asserts that when it comes to opening doors, "you've just got to be a bit ballsy. Don't hold back." She messages privately owned makeup companies and asks for advice, which often opens the door for an investment conversation. 

It's a lesson that applies to every vertical, from robotics to sportstech. 

While it flies a bit more under the radar than some other sectors, the beauty and wellness sector is vast. Here are some companies to have on your radar:

Helenis Biocosmetics (Spain) 

Founded in 2023, Helenis Biocosmetics creates skincare products that utilise pre- and post-biotics derived from natural sources to treat common skin conditions and imperfections such as skin redness and irritation and  damage caused by IR/UV radiation. 

The company raised $120,000 from angel investors this year. 

Sparxell (UK)

Sparxell develops high-performance, sustainable, plant-based pigments using fully plant-based cellulose that can be used in a variety of sectors including makeup development. 

The pigments produce vivid, durable, and fade-resistant colourants and the products are toxin-free and fully biodegradable with a colour intensity that lasts longer than traditional colourants and pigments on the market. 

The company raised $3.2 million in April this year. 

Glaize (UK) 

Glaize is a D2C brand using technology to make gel manicures easier, faster, and healthier. It's developed long-lasting, made-to-measure stick-on manicure and pedicure nails that are made from and look like real gel but don't need any curing once on the nail.

It's better for your nails and healthier for the environment. 

Its current formulation is 30-40 per cent bio-based (depending on the shade), and it aims to increase this. 

Evidose (Poland)

Evidose is a specialised company that conducts effectiveness testing for supplements, functional foods, and cosmetics. They assist brands in their marketing, researchm and development efforts by providing objective, proprietary data that can be legally used in advertising.

Unlike traditional clinical trials, Evidose utilises a DCT (Direct Consumer Trial) approach, significantly reducing costs. Their testing methods involve an intuitive app, at-home blood tests, data from wearable health monitoring devices, digital cognitive tests, interactive surveys, and more.

The company raised $500,000 in 2023.