Subscription company Birchbox has been given a much needed boost with $15million in bridge financing raised from existing investors helping take the company towards profitability.
The news comes after Unilever gave a massive boost of confidence towards the subscription based beauty model with its acquisition of subscription grooming site Dollar Shave Club.
Birchbox CEO Katia Beauchamp told WWD.com, “Birchbox raised a $15 million round of internal financing from existing investors to bridge the company to profitability. Birchbox’s investors are very supportive of the company and its ambitious long-term vision, and continue showing their confidence in the business through this financing round.”
While Martin Okner, managing director at SHM Corporate Navigators, told the news site, “[The bridge financing] is likely a way for the company to maintain focus on an operating plan that they’ve put in place…in order to get them to an eventual sale or other form of capital.”
The company’s investor currently include individuals as well as company’s Accel, Aspect Ventures, Bullish, First Round, Forerunner Ventures, Glynn Capital Management, Grace Beauty Capital, Grape Arbor VC, Harrison Metal and Lerer Hippeau Ventures.