In 2025, the beauty fundraising landscape experienced a notable slowdown compared to previous years, reflecting a shift in market dynamics. Highlighting the trends, Wonderskin, a lip stain brand that gained fame through TikTok, completed a significant $50 million Series A round led by Insight Partners in May, marking the largest fundraising effort globally within the beauty sector this year. Close behind, PS Lifestyle, a provider of salon and spa services, raised $21.6 million in February. This dip in overall fundraising activity suggests a market recalibration, prompting brands to innovate and adapt to changing consumer preferences.
Among other noteworthy capital raises this year was OneSkin, a biotech brand focusing on skin longevity, which secured $20.4 million from Prelude Growth Partners despite lacking retail distribution. In contrast, LYS Beauty, a cosmetics brand that has made its mark at Sephora and TikTok Shop, raised $15 million from Encore Consumer Capital in its inaugural funding round in March. Notably, Wonderskin’s success on TikTok Shop facilitated its recent launch at 350 Sephora locations, illustrating the growing intersection of e-commerce and retail partnerships in beauty.
April saw an infusion of capital into the fragrance sector as DedCool attracted an additional $7.5 million, further solidifying its position in the market with the backing of early investor Sandbridge Capital. Meanwhile, the launch of a tween beauty brand called Sincerely Yours, spearheaded by 16-year-old influencer Salish Matter and her father, Jordan Matter, marked a stirring entry into the industry. The brand raised $7 million in a seed round and enjoyed remarkable success, with its four-piece line selling out within days at Sephora. The excitement surrounding its launch event, which drew more than 80,000 attendees at the American Dream mall, underscores the potential of tapping into youthful demographics.
Reflecting on earlier trends, 2023 highlighted a different approach to funding within the beauty sector, as NewLimit, a health startup, emerged with a staggering $60 million raise. True Botanicals followed with a $30 million Series B round led by NextWorld Evergreen. Interestingly, the role of TikTok in driving virality among beauty brands appeared to diminish in 2025 compared to previous years, suggesting brands may now seek more sustainable pathways to growth beyond social media trends.
Interestingly, the wellness sector outpaced the beauty industry in fundraising this year. David Protein led the charge with a hefty $75 million series A funding round, backed by Greenoaks and Valor Equity Partners. Other wellness brands like Perelel, Cymbiotika, and Veracity also secured significant funding, highlighting a national momentum towards health and wellness products that align with consumers’ evolving priorities. Even wellness shot brand Dose managed to raise $47 million, showcasing a broadening interest beyond traditional beauty solutions.
In the wake of these financial movements, the beauty industry seems poised for a period of reevaluation and reinvention. While TikTok remains a powerful player in brand visibility, companies are increasingly aware of the necessity for longevity and authenticity. The successes of young, dynamic brands suggest that innovation and meeting consumer needs will be key to thriving in an increasingly competitive and diverse market, setting the stage for what comes next in beauty and wellness sectors.