One in four Americans has a chronic skin condition. Inflammatory skin conditions not only lead to discomfort but often feelings of self-consciousness and loneliness during flareups. For some, this can also lead to depression and anxiety; depression, anxiety, and stress are also found to contribute to flare-ups, creating a vicious cycle. Topicals is a skincare product brand focused on providing leading natural products that are formulated to work effectively on all skin types while also raising awareness of the connection between mental health and skin conditions. Founded from the founder’s frustration using conventional over-the-counter products that were not designed for those with darker skin, the brand distributes through its website as well as brick-and-mortar retailers like Sephora, where it’s the fastest-growing skincare brand. All products are developed in conjunction with a scientific advisory board of leading physicians and are free of dyes and animal testing. The company grew revenue 3x in 2021 alone.
LA TechWatch caught up with Topicals CEO and Founder Olamide Olowe to learn more about the business, the company’s strategic plans, latest round of funding, which brings the total funding raised to $12.6M, and much, much more…
Who were your investors and how much did you raise?
$10M was raised in Series A new financing led by CAVU Consumer Partners. The funding comes on the heels of explosive 3x revenue growth for Topicals in 2021 alone.
Tell us about your product or service.
Topicals is transforming the way you feel about skin through effective science-backed products and mental health advocacy. We believe in the philosophy of less frequent, less painful flare-ups or like we like to call it–funner flare-ups. Perfect skin doesn’t exist yet skin conditions can be painful. People with chronic skin conditions live this duality and our mission is to remind you that you make skin look good–not the other way around.
How is it different?
Having lived with a serious skin condition myself, I found there were limited treatment options available, and none of the brands looked like me. I could use an over-the-counter product that didn’t address my specific needs as a Black woman with darker skin, or spend thousands on pricey prescriptions. With all of the amazing beauty products out there, I still didn’t find one that helped me with my flare-ups. I knew we could do better.
We are also focused on creating an inclusive community around real, positive, and authentic discussions about their skin. And since chronic skin conditions often lead to serious mental health issues because of the stigma, shame, and embarrassment often felt by those with them, Topicals is donating 1% of profits to various mental health organizations. Prior to launch, Topicals donated over $10,000 to and partnered with Sad Girls Club, Therapy for Black Girls, and Fearless Femme 100, and are partnering with the JED Foundation at launch.
What market you are targeting and how big is it?
1 in 4 Americans lives with a chronic skin condition and people of color are more likely to find skincare products or dermatologists that understand how to treat skin of color.
What’s your business model?
We sell direct-to-consumer and in 600+ Sephora stores in the US and Canada
How are you preparing for a potential economic slowdown?
Our products are made to replace multiple steps in your skincare routine by combining every ingredient you need in one bottle. We position ourselves as the most effective yet economical skincare on the market.
What was the funding process like?
The Series A process was so much better than the seed round because we had the virality and revenue that proved our original hypothesis around the need for fun, effective skin care products for all shades. The diligence process was more intense, but I feel so lucky to have Jenna and the CAVU team with us on this journey.
What are the biggest challenges that you faced while raising capital?
I spent 2 years pitching to investors trying to get them to understand the need in the market particularly around skin of color, but because of the lack of diversity in the VC world investors didn’t personally experience it and therefore couldn’t wrap their minds around the opportunity.
What factors about your business led your investors to write the check?
Unique insight about an underserved market, cultural storytelling, and distribution partners.
What are the milestones you plan to achieve in the next six months?
To date, Topicals has donated more than $50,000 to support nonprofits providing mental health resources for marginalized communities. To expand this mission, Topicals is launching a 12-month accelerator program designed to provide nonprofits in the mental health space with leadership training, mentorship, and business advisory.
What advice can you offer companies in Los Angeles that do not have a fresh injection of capital in the bank?
My advice to companies in Los Angeles that are not at the capital fundraising part of their journey yet is to spend a lot of time focusing on brand storytelling. When you build out every aspect of your brand’s story intentionally it will become incredibly easy to tell that story day in and day out. So ultimately when the time comes to tell that story or pitch your business it will be second nature.
My advice to companies in Los Angeles that are not at the capital fundraising part of their journey yet is to spend a lot of time focusing on brand storytelling. When you build out every aspect of your brand’s story intentionally it will become incredibly easy to tell that story day in and day out. So ultimately when the time comes to tell that story or pitch your business it will be second nature.
Where do you see the company going now over the near term?
The funding will be used to further propel Topicals’ omnichannel growth, drive new hires, support channel expansion, and fuel brand marketing awareness. The company will also continue its mission of raising awareness around the connection between mental health and skin conditions.
What’s your favorite outdoor activity in LA?
Hiking!
