News

Retail beauty player Birchbox gets robust investment infusion

August 4, 2016

Investors are investing $15 million, in the form of a convertible note, in retail beauty startup Birchbox.

In 2014, after raising $60 million, the company was valued at $500 million. However, rapid hires and marketing costs led to an unsustainable market, according to a release.

In January of 2016, the company laid off 15 percent of staff and followed with another layoff of 12 percent in June.

“The idea is to be in control of our own destiny, and now we’ll be able to become profitable very soon and going forward," said Co-founder and CEO Katia Beauchamp in the release.

Just 35 percent of the company’s revenues come from sale of full-sized products so Birchbox hopes to increase that figure as well as open additional brick-and-mortar locations.