Hip-hop mogul and billionaire Jay-Z backed the beauty brand Madison Reed in an investment round totaling $33 million.
Forbes reported that the popular beauty brand raised the money in new financing led by Sandbridge Capital, with participation from Jay-Z’s Marcy Venture Partners. The funding will be used to further its omnichannel expansion of hair color bars and retail locations and continue its investments in product innovations.
Madison Reed was founded in 2013 by CEO Amy Errett and has grown from a direct-to-consumer brand to having its own retail locations and partnerships with other face and beauty brands like Ulta Beauty and Target.
Errett told Forbes her goal for Madison Reed was to provide access for everyone to color their hair with high-quality results through its direct-to-consumer model, its hair color bars, and retail partners.
Hair coloring typically varies by person. Those trying to avoid high prices at the salon gravitate to kits at a pharmacy or a retail store. However, the directions are often complicated and include a lot of chemicals. Those who want a more professional look have their hair dyed at a salon but often pay $50 and up for it.
“Our business is the epitome of omnichannel, customers know our brand, they see the same products that we are known for in the direct-to-consumer line as we have in our own Hair Color Bars and in our partner locations,” Errett said according to Forbes.
Jay-Z has invested in a wide range of businesses, including beauty companies. Last year, he teamed with L Catterton and Sonoma Brands to participate in a $20 million Series A round for MERIT beauty, which was reportedly the largest amount raised by a venture capital-backed company in the beauty and cosmetic sector in 2021.
Madison Reed plans to expand to 80 locations with more than 800 new colorists in New York City, South Florida, California, Chicago, Washington D.C., and Texas by year’s end. The U.S. haircare industry is expected to generate more than $13 billion in 2022, according to Statista.