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Why we invested in Sourcerie. Sourcerie has raised a £1.8m pre-seed… | by Jeevan Sunner | Playfair Capital Weblog | Mar, 2023

Sourcerie has raised a £1.8m pre-seed spherical, from Playfair, Vorverk Ventures and strategic angels to construct the tech platform and personalisation software program for customers’ skincare, haircare, and bodycare wants

The way it began

I’ve been a skincare nerd since being recognized with grownup pimples on the age of 21. After seeing a dermatologist, I felt misplaced and confused navigating an trade filled with jargon, fairly packaging and intense advertising campaigns. It’s an area that I’ve at all times felt, as a client, wanted revolutionising….

After which we heard of Kristin Cardwell and Alex Beyer by means of our current Playfair portfolio founder — Mandeep Singh (thanks for the intro Mandeep 🙏).

We have been tremendous impressed with the founding group’s background starting from Palantir, Operate of Magnificence, L’Oreal, and Refinery29, to engineering levels from MIT, Cambridge, and Oxford, plus intensive expertise in tech, magnificence and scaling venture-backed companies. Coupled with their ardour for the area, we knew these are the founders to disrupt the established order in magnificence by serving to customers and suppliers apply goal, data-driven decision-making to their private care wants.

Founders Kristin Cardwell and Alex Beyer

The wonder trade is failing its customers

Inside the booming world magnificence trade, skincare is a megatrend. Searchs for the time period on Google have elevated 350% over the previous 5 years, doubtless attributable to its affiliation with well being and wellness. At present, 20% of individuals purchase a number of skincare merchandise every month and pores and skin circumstances are among the many high 10 causes for GP visits.

There over 25,000 world skincare manufacturers making an attempt to faucet into this main market. However that isn’t nice information for customers. Except customers’ pay for the companies of consultants or dermatologists, they’re left to teach themselves by means of manufacturers’ advertising groups or influencers, who’re financially motivated to suggest sure merchandise. In consequence, client are making high-risk, high-intent selections alone.

The consequence: a client overwhelmed by selection and data.

Sourcerie’s resolution

Sourcerie is first constructing a personalised purchasing market between customers, retailers, and types the place customers can entry personalised suggestions based mostly on buyer suggestions and machine studying. Powered by datasets and advice algorithms, this degree of personalisation within the magnificence trade is a gamechanger, enabling customers to make knowledgeable selections which have by no means earlier than been obtainable to them with out the costly companies of a specialist.

Sourcerie will accomplice with trusted manufacturers, retailers, and distributors to supply all kinds of merchandise. Manufacturers will obtain related knowledge about prospects and knowledge insights from Sourcerie, which they might not obtain from different sellers, to proceed bettering their merchandise for customers.

Sourcerie touchdown web page

Our funding thesis

Sourcerie’s beachhead market — the worldwide skincare market — is predicted to develop at 5.2% CAGR over the following 5 years to succeed in $189B by 2025. Their secondary market — the haircare market — will attain $105B in the identical interval.

Sourcerie is getting into the market at precisely the precise second. Shopping for skincare on-line was jumpstarted by the pandemic and is turning into more and more regular, particularly amongst youthful customers. ‘Personalisation’ — matching merchandise which are proper for the person — is a key development.

On the identical time, manufacturers’ buyer acquisition prices have risen dramatically since Fb and Google advert prices doubled in 2021. These tens of 1000’s of manufacturers are struggling to distinguish themselves to customers at an inexpensive worth. It’s more and more troublesome for them to chop by means of the noise through internet marketing channels.

And at last, D2C manufacturers personal and accumulate their knowledge, however after they promote by means of companions or resellers, they lose knowledge oversight. They obtain little knowledge about their customers, and what they do obtain is essentially qualitative. Sourcerie is data-first. The insights on client behaviour and spending habits it could possibly supply manufacturers is invaluable.

Sourcerie’s founders have a robust knowledge and tech benefit that many founders within the magnificence trade lack. It is a compelling proposition for manufacturers who can’t entry related knowledge elsewhere, and for customers, for whom this degree of personalisation is unrivalled.

What’s subsequent

Sourcerie have formally launched their market and can be working carefully with manufacturers to assist them service their prospects.

We’re tremendous excited to assist Kristin and Alex of their subsequent part of progress

A private observe

For those who’re a founder on the very earliest levels of constructing your organization, you possibly can pitch the Playfair group right here. You’ll be able to observe the Playfair group on LinkedIn, Twitter, Forbes, Vimeo and right here on Medium.

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