Funding of $7 million to be directed towards Black-focused cosmetic companies by Ipsy
In the wake of the 2020 protests against systemic racism and police brutality, investments and corporate support from retail beauty brands towards Black-owned beauty companies have shown mixed results up to 2025.
Consumer Demand and Brand Innovation
Several Black-owned beauty brands have gained visibility and support. For instance, Ami Cole, founded by Senegalese American Diarrha N’Diaye in 2021, secured $1 million in pre-seed funding and generated $2.5 million revenue in 2022, with its products designed to cater to melanin-rich skin in multiple shades [1]. Fenty Beauty by Rihanna remains a leading multicultural beauty brand, emphasising diversity and inclusion through extensive product shades and inclusive marketing, currently valued at $2.8 billion [1].
Venture Capital Funding Challenges
However, venture capital funding for Black founders has recently declined. Despite raising over $3 million, Ami Cole is shutting down in 2025 due to a multi-year low in venture capital funding towards Black founders [3]. This suggests that the initial post-2020 momentum has been difficult to sustain in financial investment.
Philanthropic and Corporate Social Responsibility Efforts
On the retail and philanthropic side, companies like Ulta Beauty continue to provide significant charitable support linked to diversity and community wellness programs. Ulta’s partnership with Big Brothers Big Sisters of America raised over $2.4 million in 2025 to support youth wellness initiatives, reflecting indirect but important backing for social causes connected to racial equity [2].
Marketing and Brand Strategy Support
Marketing support and agency assistance have also grown for Black-owned beauty entrepreneurs seeking visibility and growth in the marketplace. Agencies such as The Beauty of Marketing highlight their role in elevating Black beauty founders through brand identity and creative strategy to help these businesses scale [5].
Retailer Commitments
Retailers like Macy's, West Elm, and Madewell have also pledged to support Black-owned businesses in some way. Beauty subscription company Birchbox partnered with the Brown Girl Swap campaign to curate a box of all Black women-owned brands. Ipsy, another direct-to-consumer brand, has launched a program named Beauty Amplified to identify and amplify Black-owned brands for their Glam Bags [4]. Fellow direct-to-consumer brand Glossier plans to give out $1 million in grants to Black-owned businesses in the beauty space and $1 million to various racial justice organizations.
Corporate Demographics
Ipsy released the company's demographics on social media last June, stating that 60% of employees and 41.5% of its leadership team identify as people of color [6]. The Pull Up For Change campaign urges beauty companies to release how many Black executives and employees they have.
The Future
In summary, the landscape for Black-owned beauty brands is complex. Post-2020 enthusiasm has faced financial challenges, but brand innovation, consumer interest, and philanthropic support persist. The trends shaping online retail, including pivots in digital strategies and challenges retailers must overcome with reverse logistics, continue to evolve.
- AI-powered marketing strategies have been increasingly adopted by Black-owned beauty brands, such as Ami Cole, to enhance brand awareness and sales, even as venture capital funding dwindles.
- The financial services sector, recognizing the importance of social justice and diversity, has established programs for funding Black-owned businesses in the beauty industry, ensuring their continued growth and stability.
- The emerging field of space technology offers innovative opportunities for education outreach, connectingBlack-owned beauty brands with diverse communities and fostering new collaborations in business and technology.
- As the race for inclusion and justice gains traction, finance and business leaders are being held accountable in their corporate demographics and addressing the underrepresentation of minority groups, including Black executives and employees, to create a more equitable environment.
