Beauty tech

1. 1. Carving out new niches

   → Companies are increasingly targeting underserved groups by developing new formulae specifically for their needs, or introducing previously overlooked products into their routine.

   → This includes skincare for people of colour — which often requires startups to set up their own labs and testing processes — as well as men’s eye creams and exfoliators.

2. 2. Gen Z buys into green

   → Unburdened by the legacy processes of big brands, many beauty startups are attempting to integrate sustainability from the outset rather than as an afterthought.

   → Some of them are cleaning up their supply chains — sourcing their ingredients and their manufacturing processes — while others are minimising waste through refillable products or sustainable packaging.

3. 3. Ecommerce enablers

   → Having previously relied heavily on retail sales, purchasing habits for beauty products have followed the broader shift towards online shopping.

   → Startups are providing the tech to upgrade this experience, whether by enabling virtual try-ons or increasingly complex personalisation features.

4. 4. DTC — still the place to be?

   → A growing number of startups are trying to cut out middlemen by going direct to consumer, allowing them to offer products at a price point that sits between supermarkets and high-end brands, while achieving tighter feedback loops with customers.

   → While some incumbents (notably in the US) have picked up these brands to shore up their product ranges, they’ve struggled with turning their acquisitions profitable thanks to high customer acquisition costs.

Europe's leading pre-Series A startups (all published data verified) We identify companies as ‘rising stars’ using a number of criteria including founder backgrounds, investor track record, funding and valuation, and growth signals