Topicals Founder on Pitching Venture-Capital Investors With Confidence
- Topicals, a brand that produces products for chronic skin conditions, is led by Olamide Olowe.
- Topicals announced on Thursday that it had raised $10 million in Series A capital from CAVU Venture Capital.
- Olowe shared her advice as a Black female founder on how to pitch investors confidently.
After experiencing ingrown hairs, boils, and other skin problems as a child Olamide Olowe began her skincare line. These issues weren’t discussed much by her peers, or even medical professionals, she stated.
Olowe shared that he grew up feeling isolated and spent a lot time visiting dermatologists and primary-care doctors trying to find treatment. “I didn’t get results, and I didn’t really understand why.”
Olowe, a student in college, learned that people of colour were not only underrepresented within the skincare industry but also frequently missing out on clinical trials and research.
“Darker skin people were not as well studied and didn’t have a good understanding of formulating prescription or over the counter products,” she stated.
After graduating from the University of California in Los Angeles, she set out to transform beauty and industry standards. She founded Topicals in 2020 at 23. Her company develops skincare products to treat chronic conditions and improve self-esteem.
Topicals announced Thursday that it raised $10 million in Series A funding from CAVU Venture Capital, a venture capital firm that invests in consumer-product brands like Beyond Meat or Oatly. Topicals’ total funding now stands at $14.8million.
Here’s Olowe’s confidence pitch to investors
Building confidence
Topicals was launched with $2.6million in seed funding. Olowe wasn’t able to match that amount. Before last year, only 93 Black female founders had raised $1 million or more in venture capital, according to ProjectDiane, a biennial report on the state of Black and Latina women founders by the organization Digitalundivided.
She stated, “It took about two years and probably nearly a hundred pitches before I got funding.”
It might have been faster if she were not young, Black and female. However, it taught her how build confidence.
She stated that she learned quickly at the age of 23 how to be confident and present my business in a way no one can see. “I go into every room. “I know what I am talking about.”
Her greatest strength is her refusal to let the statistics regarding funding Black female entrepreneurs stop her.
She said that there were many reasons she should not have the funding. “But I don’t even consider why this shouldn’t happen.”
Use culture to color the data
Olowe says that her pitch is built on her knowledge and preparedness. That builds respect among investors. She uses data to show why her products are important, profitable, and impactful.
She stated, “It is always driven by data and then we color that culture with data.”
She provides context that allows investors to get a better idea of the market for skincare products in communities of color. When investors inquired why she didn’t include a acne treatment in her product range, she replied that she wanted to begin with a treatment for Hyperpigmentation. This is a common skin problem for people of color.
She stated that “Before entering the market, many people of color didn’t have a lot to use products.” “But their spending was seven- to eight times greater than in other communities.”
Both roles are reversed
Olowe explained that raising capital again was easier than the first. This is because the investors came to Olowe. She realized that she was the one who could offer them a chance and had leverage.
She stated, “I wasn’t begging for money.” “I knew that this company would succeed. I was aware of the future direction of this market in the next 2-5 years.
If an investor misses the chance, they are out of luck.
She stated, “I’m very scrappy.” “I don’t return to you asking for money.”
Correction: November 10, 2022 — An earlier version of this story misstated Topicals’ total funding. It is $14.8million, not $12.6million.