European investors are playing a growing role in the beauty industry’s deal flow, challenging the long-standing dominance of US firms in backing emerging companies. Firms including Inflexion, Venrex and Manzanita are drawing interest from independent labels through their hands-on approach and track record of exits.
David Benedek, founder of Paris-based niche perfumery BDK Parfums, was open to securing growth capital from investors anywhere in the world. However, conversations with international firms led him to a different conclusion: despite the ease of modern communication, face-to-face meetings remain a decisive part of the investment process.
Benedek’s experience highlights the importance of proximity and personal engagement as European beauty brands seek funding. For founders, the appeal of local or regional investors may extend beyond capital to include closer relationships and more direct involvement in their companies’ growth.
Sources: The Business of Fashion.