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Organizations across the country pledged over $50 billion after George Floyd’s murder in order to take an active role in dismantling systemic racism. Economic equality (with a focus on mortgages), education, health and culture were some of the biggest areas of investment.
And one of the most overlooked areas for investment: Black entrepreneurship. Specifically giving Black entrepreneurs access to both capital and networks to help them build their businesses and, in turn, build community wealth.
According to a McKinsey report, Black entrepreneurs start with $35,000 in capital compared to $107,000 for their white entrepreneur counterparts. For the first half of 2021, of the record $147 billion in venture capital invested in U.S. start-ups, Black entrepreneurs received only 1.2% of that funding. Much of the current ecosystem does not help Black entrepreneurs to succeed and to thrive.
Glossier, Sephora and Shea Moisture have all taken a stand to build a more inclusive beauty ecosystem by funding and supporting Black-owned beauty businesses. The beauty industry in particular has been under scrutiny for the lack of diversity and inclusivity. Here’s what these brands are doing to show up for Black entrepreneurs.
Glossier
Glossier has made a $10 million commitment to equity and inclusion over the next five years. As part of that commitment, Glossier wants to help amplify and support the next generation of game-changing beauty companies. This means not just granting capital ($500,000 worth of grants available annually), but also providing access to industry advisors.
Glossier’s Grant Program for Black-Owned Businesses is open to any Black-owned beauty business, including those in the growth stage, early stage and pre-launch phase. Grant recipients have monthly advisory calls with domain experts, including supply chain, packaging and content strategy.
Glossier is also using the power of its social network to introduce these founders, their stories and their brands to the Glossier community. Glossier is on a bigger mission to democratize beauty and how the world sees beauty. It can only stay true to the mission if it can be a catalyst in changing the beauty industry by amplifying more Black beauty entrepreneurs. Glossier Grant recipients include Eadem, Luna Magic and Golde Wellness.
Sephora
As a retailer, Sephora’s DEI commitments serve two important audiences: both its employees and its clients. Sephora has taken the 15 Percent Pledge to dedicate at least 15 percent of its shelf space to Black-owned companies. It has also launched Sephora Accelerate, a brand incubator focused on founders of color offering a six-month intensive bootcamp to prepare founders to see their product on Sephora shelves.
Participants must be an early-stage beauty brand (with at least a lab sample or prototype) not yet distributed widely by others. Participants will receive a monetary grant and may be eligible for additional funding.
The program provides founders with learning on how to structure their business model, boost branding and marketing and develop a growth plan to ensure a successful launch at Sephora. They also will receive one-on-one personalized mentoring from Sephora leaders and Beauty Industry Veterans. Past recipients include Kulfi Beauty, 54 Thrones and Imania Beauty.
Shea Moisture
Shea Moisture was founded by Richelieu Dennis, a Black entrepreneur who started selling raw shea butter and African black soap on the streets of Harlem. In 2017, Unilever, a multinational consumer product goods company, acquired the brand for an undisclosed amount, and Shea Moisture continues to serve the Black community.
Brown Girl Jane, named as Refinery 29’s Beauty Innovator of the Year, is a disruptive, plant-based wellness and beauty collection founded by Malaika Jones. Together, with Shea Moisture these two brands teamed up to launch the #BrownGirlSwap Grant Competition.
This year’s program provides $150,000 worth of grants along with mentorship. This grant competition is Shea Moisture and Unilever’s way of supporting Brown Girl Jane’s #BrownGirlSwap campaign, which asks consumers to swap five products they use for those from BIPOC-owned brands.
For the grant program, participants must have revenue under $1M. Past participants include Range Beauty and Base Butter who have both secured retail partnerships.
We need more key players in the beauty industry to step up to address the disparities faced by Black entrepreneurs. By funding and supporting Black beauty entrepreneurs, brands like Glossier, Sephora and Shea Moisture are helping to build a more inclusive ecosystem where more Black and Brown customers will ultimately be seen and heard.
