tbh Skincare Completes Successful $450k Raise Alongside PE Investment

Connery Chang, Digital Marketing Analyst

D2C skincare industry disruptor tbh Skincare successfully raised over $450k from 217 new investors through its equity crowdfunding campaign - kickstarting an exciting lineup of e-commerce champions on the Equitise platform this final quarter of the year. With these funds and underpinned by its patented technology, tbh will seek to expand into further product lines, alongside new demographic and geographic markets. The company will also seek to increase its margins and efficiencies alongside a growing headcount to underpin its growth strategies. 

Unique to this raise, tbh Skincare received significant investment from a leading global consumer PE fund alongside the crowdfunding campaign giving investors a unique opportunity to invest alongside private equity. How far we’ve come!

What is tbh Skincare

Launched in March 2020 by mother and daughter team Bridget and Rachael, tbh skincare is a direct-to-consumer (D2C) skincare company selling clinically proven treatments for adult acne using patented technology. tbh Skincare aims to fill a gap in the market by creating a brand that formed a bridge between pharmaceutical grade skincare and consumer-centric cult brands.

Since launch, tbh has considered the needs of the acne-prone customer to create a range that continues to fulfil all of their broader skin care needs. The company has delighted over 6,800 customers across Australia in just over a year of operations, with rapid customer growth, new product launches in the pipeline and a wider market of untapped potential.

Key Takeaways

Use of investor rewards 

Given the nature of their consumer base, the use of investor rewards worked great as both a customer acquisition tool and an incentive to existing customers to invest. This presented a great avenue to get a younger demographic to open their wallets and get behind a brand they love. By providing investor rewards such as lifetime discount codes, tbh was able to generate more interest in its equity crowdfunding campaign from a relatively inexperienced audience compared to our usual seasoned investors.

With over 200 new co-owners in this innovative skincare brand, there’s no doubt that tbh Skincare has acquired a plethora of new long-term customers thanks to their use of investor rewards. The loyal customers who invested the minimum $250 amount were placed in the “tbh, we’re vibing” tier and rewarded with a 5% lifetime discount on tbh products. On the other end of the spectrum, “besties” who invested above $1,000 are now automatically eligible for 10-15% lifetime discounts, discounts on new product releases and will also receive a complimentary gift bundle. How’s that for an incentive!

Leveraging media 

Led by co-founder and social media guru, Rachael Tyers, tbh Skincare generated significant engagement and interest from their loyal community using regular social media posts across personal and business platforms as well as live Q&A sessions on Instagram. Using this approach, tbh curated a list of nearly 1000 EOIs, predominantly from its existing fan base.

Over time we at Equitise have learnt that putting community before the product is a key success factor for many of our raises where customer engagement is indeed key. In line with the rationale of equity crowdfunding, companies that prioritise their community are able to benefit from hundreds, if not thousands of organic advocates for their brand which directly contributes to their future successes.

Why We Liked The Company?

Co-Founders on a Mission

Co-founders Bridget and Rachael bring a wealth of experience to the company, pairing Bridget’s extensive background in finance and consulting with Rachael’s Medtech marketing prowess across digital channels and branding. Having suffered from acne herself, Rachael also brings a deep understanding of tbh’s customer experience and has shared her compelling story on Broadsheet, The Beauty Independent and Body and Soul also featuring in articles by, The Sydney Morning Herald, Daily Mail and Popsugar.

Untapped, Loyal & Passionate Community

Owing to its well-crafted customer experience and high-quality products, tbh skincare has amassed a large, loyal and valuable fan base of customers (‘the tbh tribe’). With a limited operating history to date, tbh’s 30% repeat purchase rate is expected to climb even higher, with an average of 40 days between purchases. The brand has hundreds of 5-star reviews and over 20,000 followers across its social channels, which increases its competitive position against any new entrants. 

For Equitise, this raise also presented a great opportunity to engage with a new generation of investors who have traditionally not been a part of the equity crowdfunding demographic and to expand the diversity of our database. We hope to see this group of investors return for our upcoming raise with another e-commerce skincare disruptor, Silvi!

Strong Market Opportunity and Growth Potential

In spite of COVID, tbh Skincare was able to deliver over 10,000 orders to 6,800+ customers in just over a year, generating net revenue of 750k. As a digitally native brand from day one, tbh benefits from a highly scalable model with limited fixed costs. This has allowed the brand to focus on rapid expansion and product development having recently released their new ‘Thirst Trap Moisturiser’ with further new releases in the pipeline.

Furthermore, tapping into a significant gap in the market that is ‘anti-acne products for adults’, tbh is the fresh face in an aging industry. tbh is addressing the growing number of under-served customers with reliable, scientifically-backed products combined with a young and dynamic digital brand. Looking forward, the company is on track to hit $1.3m in sales for FY22 with a stretch target of $1.9m.

Looking Ahead

We are excited to follow tbh Skincare on their journey to disrupt and revolutionise the adult anti-acne and beauty industry. With further releases in the pipeline for following their hit ‘Thirst Trap’ moisturiser release and plans to launch into the male as well as international markets, tbh is well-positioned for growth, tapping into an attractive market opportunity.

Watch this space for upcoming news about our next big raise in this trending industry and catch tbh on this season of Australia’s Love Island as the official SPF supplier!

First in the know
Get first dibs on new offers