Birchbox, the beauty e-commerce site that launched this past September, just released some good news. They raised $1.4 million in seed money from venture capitalists First Round Capital and Accel Partners, as well as several other investors.
Investments like this are crucial for new businesses to stay afloat. After the site went live, the company had rapid growth in paid subscribers. One of the founders, Katia Beauchamp, said in a press release that they were going to expand their team and try to increase their membership base.
Early blog posts on the site show the co-founders and intrepid interns all pitching in to pack the gorgeous little sample boxes that have quickly become their trademark. Obviously this is going to start becoming an onerous task as their membership reaches the thousands, and it takes manpower to grow a company.
Just in case you didn't read our previous article, here's the deal on Birchbox: You pay $10 per month (or $110 per year) and get a box full of deluxe beauty samples. E-commerce and a point-based loyalty program round out the site. What is particularly unique about Birchbox is its well-executed beauty articles. Many beauty sites give you a few generic lines, but the “Haute Box” section of their site is dedicated to true beauty editorial. Highlights: Deborah Lippmann gives step-by-step home mani instructions and make-up artist Emily Kate Warren teaches you how to do fake lashes. And there are plenty of gorgeous still images, as well as video.
Obviously the investors thought Birchbox had a winning concept. It will be interesting to see how this company uses its unique platform.