Top 5 Venture Capital Firms Investing in Beauty Startups

For founders in the beauty, wellness, or consumer goods space, preparing to raise capital means finding an investor who truly understands your market. Identifying the right venture capital firms from the start makes your fundraising process more targeted and efficient.

To assist in your search, the Rho team has curated this overview of active VC firms in the beauty industry. Consider this your starting point for researching potential partners, from early-stage investors to firms that back growing consumer brands.

Rho provides access to business banking, corporate cards, and bill pay — built for startup teams moving fast.

Key Takeaways

• For startups in the beauty space, securing venture funding is about finding a strategic partner who understands your consumer market, not just obtaining capital.

• VMG Partners, Fernbrook Capital Management LLC, Sputnik ATX, and Electric Feel Ventures are a few of the notable VC firms actively investing in beauty and consumer startups.

• If you are raising or have just closed a round, Rho helps you manage your capital with integrated business banking, corporate cards, and automated bill pay.

Which VC Firms in Beauty Are Right for Your Stage?

Whether you’re in the early stages of building your company or preparing for an exit, it’s important to connect with the right investors for your specific needs. To help, we’ve put together a quick overview of active VC firms in the beauty sector, organized by investment stage.

Pre-seed and Seed VC Firms in Beauty

Pre-seed and seed funding are the earliest forms of capital, typically used to validate an idea, build a minimum viable product, and achieve initial market traction. For founders in the beauty industry, startup venture capital firms like Sputnik ATX, Electric Feel Ventures, and Fab Co-Creation Studio Ventures specialize in providing this foundational support.

Early Stage VC Firms in Beauty

Early-stage funding, which includes Series A and Series B rounds, is for companies with a proven product and market fit that need capital to scale operations and grow their customer base. Health and wellness venture capital firms such as Fernbrook Capital Management LLC and VMG Partners are known for backing consumer brands at this growth phase.

Late Stage VC Firms in Beauty

Late-stage venture capital is for established companies preparing for significant expansion, a potential acquisition, or an initial public offering (IPO). A notable investor in this space is VMG Partners, which has a strong history of guiding consumer product companies toward major exits.

Once funding is secured, Rho’s integrated financial tools — including business banking, corporate cards, and automated bill pay — help startups manage and deploy capital efficiently. It is also worth noting that some consumer venture capital firms invest across multiple stages, from seed to exit.

To help you identify the right partner, we've compiled an overview of top VC firms focusing on the beauty industry. Below are key details on their investment stages, geographic focus, and what distinguishes each firm for founders.

1. VMG Partners

VMG Partners is a private equity and venture capital firm that partners with founders to grow consumer brands and the technologies that support them.

The firm invests across multiple stages and has a strong record of guiding brands to major exits. A key example is their investment in skincare brand Drunk Elephant, which was acquired by Shiseido for $845 million.

Founders of consumer brands, particularly in beauty and wellness, who are seeking a hands-on partner to help scale toward a significant acquisition may find VMG to be a good match. Their portfolio demonstrates a clear ability to build household names.

• Investment stages: Seed, early-stage venture, late-stage venture, and private equity
• Industries of focus: Beauty, consumer goods, food and beverage, personal care
• Geographical presence: San Francisco, California
• Founded: 2005
• Notable portfolio companies: Drunk Elephant, Quest Nutrition, KIND Healthy Snacks, Spindrift
• Track record: The firm has a history of high-profile exits, including the $1B acquisition of Quest Nutrition and the $286M acquisition of Justin's.

You can refer to their website here.

2. Fernbrook Capital Management LLC

Fernbrook Capital Management invests in early-stage, tech-enabled companies that serve consumers directly. The firm partners with founders across sectors like beauty, e-commerce, and consumer goods to build lasting brands.

A key characteristic of Fernbrook is its success with direct-to-consumer models, highlighted by its investment in the clean-beauty leader Beautycounter. Their portfolio also includes globally recognized consumer-tech brands like Ember Technologies, showing a focus on companies with a strong product and market appeal.

Founders with a tech-forward consumer product, especially in the beauty or wellness space, may find Fernbrook to be a good fit. The firm is well-positioned to support companies aiming to scale through a direct-to-consumer strategy.

Once you secure funding from a partner like Fernbrook, Rho’s integrated financial tools — including business banking, corporate cards, and automated bill pay — help you manage and deploy that capital efficiently.

• Investment stages: Seed, early-stage, and late-stage venture
• Industries of focus: Beauty, consumer goods, e-commerce, food and beverage, retail
• Geographical presence: New York, New York
• Founded: 2016
• Notable portfolio companies: Beautycounter, Ember Technologies, Birdwell Beach Britches
• Track record: The firm had a successful exit with Beautycounter after it was acquired by The Carlyle Group.

You can refer to their website here.

3. Sputnik ATX

Sputnik ATX is an Austin-based venture fund and startup accelerator that focuses on investing in what it calls “maker-founders.” The firm provides both capital and structured support to early-stage companies.

A defining feature is its dual role as an accelerator and a fund with a broad investment scope, covering sectors from beauty to enterprise software. Its portfolio includes the clean-beauty brand LAMIK, showing its interest in the consumer space.

This firm is a strong match for seed-stage founders who are deeply involved in product development and would benefit from an accelerator program. Their model is ideal for teams seeking hands-on guidance alongside their initial funding.

Once you secure funding from a partner like Sputnik ATX, Rho’s integrated financial tools — including business banking, corporate cards, and automated bill pay — help you manage and deploy that capital efficiently.

• Investment stages: Seed, early-stage venture
• Industries of focus: Beauty, enterprise, fashion, retail, social
• Geographical presence: Austin, Texas
• Founded: 2017
• Notable portfolio companies: LAMIK, Cognitive View, Kargoplex
• Model: Venture capital fund and startup accelerator

You can refer to their website here.

4. Electric Feel Ventures

Electric Feel Ventures is the venture capital arm of Electric Feel Entertainment, focusing on early-stage consumer packaged goods (CPG) and consumer technology startups. The firm leverages its deep roots in the entertainment industry to support its portfolio companies.

A key aspect of their strategy is backing brands with strong cultural relevance, including influencer-led companies like Chamberlain Coffee and celebrity-backed ventures like Goodles. Their investments in the crypto-payments firm MoonPay and United Talent Agency also show a focus on high-growth consumer tech and media.

This firm is an excellent match for founders whose brands, particularly in beauty or food and beverage, are built around strong storytelling and could benefit from access to entertainment networks. Early-stage companies with a direct-to-consumer model and high-profile partnerships are a great fit.

Once you secure funding from a partner like Electric Feel Ventures, Rho’s integrated financial tools — including business banking, corporate cards, and automated bill pay — help you manage and deploy that capital efficiently.

• Investment stages: Seed, early-stage venture
• Industries of focus: Beauty, consumer, food and beverage, consumer software, music
• Geographical presence: Miami, Florida
• Founded: 2020
• Notable portfolio companies: MoonPay, Chamberlain Coffee, Goodles, United Talent Agency
• Model: Corporate venture arm of Electric Feel Entertainment

You can refer to their website here.

5. Fab Co-Creation Studio Ventures

Fab Co-Creation Studio Ventures invests in early-stage, direct-to-consumer brands with a focus on conscious beauty and fashion. The firm also backs companies building new commerce platforms and retail technology.

A key part of their strategy is backing “conscious” brands, with a portfolio that includes sustainable material science and circular logistics platforms. Their investments in companies like the clean-skincare brand DAMDAM Tokyo and the shoppable video app Trendio highlight a focus on both impact and new retail models.

This firm is a great match for founders building direct-to-consumer businesses in beauty or fashion with a strong commitment to sustainability. It's also a good fit for those creating the technology that powers the future of retail.

Once you secure funding from a partner like Fab Co-Creation Studio Ventures, Rho’s integrated financial tools — including business banking, corporate cards, and automated bill pay — help you manage and deploy that capital efficiently.

• Investment stages: Seed, early-stage venture
• Industries of focus: Beauty, fashion, e-commerce, retail technology, impact investing
• Geographical presence: Los Angeles, California
• Founded: 2020
• Notable portfolio companies: DAMDAM Tokyo, Function Health, Trendio, Kintra Fibers, SuperCircle
• Portfolio size: 25 investments

You can refer to their website here.

What This Tells Us About The VC Scene for Beauty Companies

This overview of venture capital firms shows a healthy and varied funding scene for beauty companies. There is a notable concentration of support at the pre-seed and early stages, with several firms specializing in foundational capital. This suggests a strong appetite for new and emerging brands in the beauty sector.

The investors are also geographically diverse, with a presence in key markets from California to New York and Texas. This variety extends to their investment models, which include accelerators, corporate venture arms, and impact-focused funds. For you as a founder, this means you have options to find a partner that aligns with your company’s stage, location, and mission.

Once funding is secured, Rho’s integrated financial tools — including business banking, corporate cards, and automated bill pay — help startups manage and deploy capital efficiently.

Raise Confidently with Rho

Fundraising requires significant focus. A targeted list of investors who understand your industry helps you direct your energy toward the conversations that matter most.

When you successfully close a round, the next step is putting that capital to work. If you’ve just raised, Rho can help you set up your financial stack in minutes.

Our platform gives you the tools to manage your new funding with confidence. We offer integrated business banking, corporate cards, and automated bill pay, all in one place.

FAQs about Venture Capital Firms Focused on Beauty

Which early-stage VC firms in NYC focus on consumer brands?

New York is a hub for consumer-focused VCs. Firms like Fernbrook Capital Management specialize in early-stage consumer brands, including those in beauty and e-commerce, making the city a key location for founders seeking funding in this sector.

Are there many beauty-focused VC firms in California?

Yes, California is home to many VCs investing in beauty and consumer goods. Firms like VMG Partners in San Francisco and Fab Co-Creation Studio Ventures in Los Angeles actively fund brands, from seed stage to private equity rounds.

What is the difference between angel investors and venture capital firms?

Angel investors are typically individuals providing seed capital, while VC firms are institutional investors that fund across stages. VCs often provide more capital and structured support, but angels can offer valuable early-stage mentorship and industry connections.

What do early-stage investors look for in a beauty company?

Early-stage investors want to see a strong founding team, a clear brand identity, and initial market traction. They also look for a unique product, a defined target audience, and a scalable business model with strong growth potential.

How can Rho help after I secure funding for my beauty startup?

Once you close your round, Rho helps you manage your new capital. Our platform offers integrated business banking, corporate cards, and automated bill pay, giving you the financial tools to scale your company efficiently.