Rachel Reid, founder of Subtl Beauty has just closed a Series A funding round with a substantial investment from consumer investment firm, CULT Capital. CULT Capital’s $5mm investment is a strong vote of confidence in Subtl Beauty’s mission to redefine consumers’ beauty routines and challenge the industry’s status quo. The funding round comes on the heels of Subtl debuting its refreshed, award-winning stackable makeup packaging with cutting-edge bezel technology.
CULT Capital brings a wealth of experience building and scaling consumer brands, and has a proven track record in beauty with brands including Supergoop!, LAWLESS Beauty, and Act+Acre. With the recent close of their second fund, CULT Capital is dedicated to backing the rare and remarkable few brands that are poised to revolutionize the consumer industry. Known for their selective investment approach, CULT Capital evaluates hundreds of companies annually but chooses to invest only in a handful, demonstrating Subtl’s extraordinary allure and potential as a game-changer in the beauty industry. CULT Capital solely considers brands for investment with a minimum of 2 million in revenue, which Subtl substantially exceeded.
“In a sector brimming with choices and complex beauty routines, Subtl stands out with its uniquely convenient and compact stackable beauty solutions,” said Sarah Woelfel, Partner at CULT Capital. “The remarkable scale of the brand, with over 300,000 Staks sold since launch, underscores its strong connection with today’s beauty enthusiasts. This success not only reflects Subtl’s deep understanding of consumer needs but also highlights a significant, unmet demand in the beauty sector.”
Subtl launched in 2018 and has been disrupting the cosmetics industry with revolutionary compact products that meet the evolving needs of beauty consumers. Inspired by her own experiences of the hustle of modern life and the desire to look put together effortlessly, founder Rachel Reid ingeniously designed a compact, stackable, and customizable solution to meet real makeup needs in the midst of everyday life. Subtl’s products are packaged in a convenient, travel-friendly stackable format for on-the-go consumers with all products being vegan, cruelty-free, paraben-free, and fragrance-free formulas. Their new Stak 2.0 packaging recently won a BeautyMatter NEXT award and includes a refillable design with cutting-edge bezel technology. Alongside its fresh repackaging, Subtl reimagined its makeup formulas in response to consumer insights, ensuring clean beauty standards and introducing new skin-conditioning ingredients like Bayberry Fruit Wax and Vitamin E. The significant series A investment funding round comes as no surprise as the beauty brand has grown a notable cult following, and growth has exceeded 170% year over year.
“The partnership with CULT Capital marks a pivotal moment for us; it is a testimony not only to our product but also to our business trajectory,” said Reid, Founder and CEO of Subtl Beauty. “CULT Capital’s network and experience scaling beauty brands is exactly what we need to take our business to the next level. ”
Reid chose to partner with CULT Capital due to the firm’s strong track record of success in the beauty category, having most recently sold a majority stake in Supergoop! to Blackstone Growth for a significant outcome. CULT Capital is excited to partner with Reid on key growth initiatives, including team development, marketing strategies, and securing broader retail distribution.