Why Smart Capital and Strong Founders Will Define the Next Decade

Investing in the Future of Beauty

Over the past decade, the beauty industry has evolved from a retail-driven business into one of the most dynamic arenas for venture investment. Digital channels, D2C models, and culturally fluent branding have created unprecedented opportunities for scalable growth. Yet, as an experienced investor with deep expertise in consumer goods and beauty, explains, successful investment in this industry requires more than capital: it demands insight, structure, and an understanding of people.

Beauty’s New Investment Logic

“Beauty has become a very interesting industry for investors, not just recently but for the past five to ten years,” says Ayvazyan. “The rise of influencers and direct-to-consumer channels has given small and independent brands easier access to the market.” Where once only established brands could afford traditional retail distribution, today’s founders can build scalable businesses with lean structures and limited resources.

“You can have a cool idea, a great formulation, and reach consumers directly without massive overhead costs,”

He explains. “That accessibility has made beauty brands more investable than ever.” But Ayvazyan notes that investor interest isn’t purely about size: it’s about momentum. “It’s not the absolute numbers that attract investors; it’s the growth rate. A brand going from one to eight to thirty million in revenue in three years tells a far more compelling story than an established company with flat performance.”

Adding Value Beyond Capital

The role of investors, Ayvazyan argues, extends well beyond providing funding. “It depends on the type of investor and the stage of the business,” he says. “At the seed level, smart investors bring coaching, structure, and strategy.”

This hands-on involvement is often critical for founder-led beauty brands, where creativity is strong but financial literacy or operational systems may be less developed. “Many founders are incredibly talented in branding and product, but they may not have the financial acumen to structure a sustainable business,” he explains. “That’s where experienced investors can make the difference, helping to shape governance, financial planning, and go-to-market strategies.” In early-stage investing, Ayvazyan adds:

“Smart money matters. You can raise a million euros, but if it’s not managed with structure, it disappears fast. The right investors guide founders on how to build organisations capable of long-term success.”

What Investors Look for in a Beauty Brand

When evaluating opportunities, Ayvazyan starts not with the product but with the person behind it.

“My starting point is always the founder. You can have the best product and formulation in the world, but without the right founder, it won’t work.”

He looks for founders who are resilient, persuasive, and “street smart”, able to lead teams, pivot under pressure, and maintain focus when challenges arise. “It’s about finding people who don’t lose interest when things get difficult,” he adds. Beyond leadership, Ayvazyan assesses a mix of factors: the brand’s positioning, intellectual property, and operational setup. “I look at whether there’s a clear brand identity, unique value propositions, and the ability to scale,” he says. For revenue-stage businesses, metrics like customer acquisition cost, return on ad spend, and customer lifetime value help gauge commercial health, but even then: “Execution matters more than the numbers on paper.”

Why Female Founders Are an Undervalued Investment Opportunity

A passionate advocate for supporting women in business, Ayvazyan highlights a structural imbalance in the investment ecosystem.

“Around 95% of venture capital funding still goes to male founders. Even in beauty, an industry driven by female consumers, the investor landscape is dominated by men.”

He notes. This imbalance, he says, is not based on merit but on communication gaps and systemic bias. “Many female founders don’t have the same access or speak the same ‘language’ as male investors. As a result, incredible brands are often overlooked.” For investors willing to look deeper, this creates opportunity.

“Within female-founded companies, there are often hidden gems, brands with authentic stories, deep consumer insight, and strong emotional connection,” he explains. “By supporting them, investors can find value others miss, while contributing to a more balanced and inclusive market.” The rise of female-led funds and investor networks, such as Female Founders Fund and Pink Salt Ventures, is beginning to shift this landscape—creating a more supportive ecosystem for women building the next generation of beauty brands.

The Next Phase of Beauty Investment

Looking ahead, Ayvazyan believes the next few years will be defined less by new D2C entrants and more by what happens to those already backed. “A lot of money has gone into digital-first beauty brands,” he says. “The key question now is: how will they evolve?” He expects increased focus on scaling, consolidation, and exits. “In the next two to three years, we’ll see which of these brands move to IPO, which are acquired by strategic players like LVMH or E.l.f. Beauty, and which can sustain growth independently,” he explains.

This transition marks a critical maturation point for beauty investment.

“It’s no longer about finding the next big brand. It’s about building enduring businesses that create lasting value".

About Andranik Ayvazyan

Andranik Ayvazyan is an investor and strategic advisor specialising in early-stage consumer and beauty ventures. With a background in venture capital and corporate development, he focuses on supporting founder-led brands through smart investment, operational guidance, and long-term value creation.