Madison Reed Locks In $16.1 Million Series C To Grow The Business And Push Into Television
At-home professional hair color delivery startup Madison Reed tells us they’ve pulled in $16.1 million in Series C financing to “scale the business and invest in expanding marketing, specifically on TV.”
The move to television commercials is interesting, considering so many companies – particularly in the startup space – seem to favor digital marketing tactics such as ads on Facebook and Twitter to reach their audiences.
Traditional television viewership is on the decline for women aged 18-24. Shows like The Mindy Project and New Girl are more likely to get views online than they are on your regularly scheduled programming (and account for The Mindy Project’s move from FOX to Hulu this season).
Madison Reed said it spent the first 18 months since launch understanding its customer base – one full of women looking to cover their grays with an upgraded salon-type coloring kit, but in the privacy of their own home.Television commercials could help Madison Reed reach the demographic it intends to go after – women of the age (late 30’s and up) when their hair starts graying a lot more. According to several studies over the years, women watch the most live television.
Part of the television push comes from a relationship with Comcast Ventures, a new investor for Madison Reed’s latest round.
“I saw how exceptionally ambitious the company is, and I’m looking forward to continuing the relationship to innovate their product and the way they connect with their audience through TV and our media channels,” managing director at Comcast Ventures Sam Landman said of the investment.
Comcast Ventures and Shea Ventures are joined by existing investors Norwest Venture Partners and True Ventures.
While there are plenty of at-home coloring kits on the shelf at the local drug store and several options to choose from in coloring at the salon, Madison Reed promises the same results as salon pros, but with a kit you can use on yourself at home.
One other company could compete with Madison Reed in the space. eSalon started out with $11 million in bootstrapped funding and told TechCrunch it is a self-sustaining and profitable business (slated to make about $30 million by the end of this year). It also does practically the same thing as Madison Reed – shipping professional hair color to the customer. However, eSalon personalizes the color match to your hair.
Hair care makes up the third-largest portion of the beauty market globally, and both eSalon and Madison Reed seem to be growing up and to the right, according to their metrics. However, it’s the relationship that matters most to Landman in the Comcast investment with Madison Reed. “We’ve had a long-standing relationship with Amy Errett, who we believe is a fantastic CEO capable of building a world-class brand,” Landman said.
Article source: TechCrunch.com