Latest news with #BYOBlush
Miami Herald
2 days ago
- Business
- Miami Herald
Mark Cuban-backed 'Shark Tank' beauty brand closes, no bankruptcy
"Hi, I'm Fiona Co Chan. I'm from San Francisco, California, and I'm here seeking $400,000 for 5% equity in my company." That's how Co Chan started her appearance on "Shark Tank," which led to an unlikely outcome for her company, Youthforia. "Shark Tank," a show where businesses pitch shares in their companies to actual investors (the Sharks), has funded hundreds, maybe thousands of entrepreneurs, but the Sharks tend to stay in their lane. Related: Fast-growing coffee chain is coming for Starbucks' crown Kevin "Mr. Wonderful" O'leary, for example, has a wedding platform and while that may not seem like his niche, he often looks for companies that expand that portfolio. Lori Grenier tends to look for products that she can launch on the QVC shopping channel while Daymond John often leans into his experience manufacturing clothing. Mark Cuban has done a wide array of deals, but he tends to stay in the technology space, That's not the only area where he has invested, but he generally has avoided beauty companies because that's not exactly his brand. Co Chan, however, seemed to captivate him as she sold her beauty brand, Youthforia, as a tech company of sorts. "Our beauty products are bio-based, meaning we're using plant-based, renewable ingredients which are great for your skin and good for the planet. We are best known for our BYO Blush, the world's first color-changing blush oil that reacts to your skin's pH to give you the perfect shade," she shared. "You know, I don't know anything about this, but to Barbara's point, I was super curious because when you have something that's completely differentiated, you ride that and you don't do anything else because that just dilutes your efforts. And sometimes you shouldn't listen to your customers. When you have something unique, you play that edge," Cuban said. He then dropped out of the bidding. Cuban, however, never really went away and it's not uncommon for Sharks to drop out then come back in. "I wish I knew a lot about this space because I think this could be the real deal and you could use some guidance on it," Cuban added. He then jumped back in. "Would you do $400,000?...No, for me. Maybe my daughters will like this. I know they'll understand it, right? But I need more equity, right? Because you're getting three of us, Alyssa, Alexis, and Mark. And Tiffany, my wife, too. So 400,000 for 10%, no royalty," he offered. More Retail: Warren Buffett's Berkshire Hathaway dire retail warningsHuge retail chain nears Chapter 11 bankruptcy after harsh closureWalmart introduces mobile new store format for younger customers Co Chan countered asking if Cuban would do the deal at 8%. "I'll even go do demos," Cuban offered. O'Leary countered offered to take lower equity, but asking for a higher royalty, while Cuban did not ask for a royalty at all. "Just to prove a point, I'll do it at 8% no royalty," Cuban countered. Co Chan barely hesitated. "You've got a deal. Co Chan posted a message on Instagram that bluntly shared that Youthforia was being closed. "We're closing Youthforia," she wrote. "I just want to thank you from the bottom of my heart for all of your wonderful support over the past few years. It's been a dream to create such a beautiful brand - but unfortunately, I've made the hard decision to shut down Youthforia." Co Chan did not explain the decision. She did announce that the Youforia website was still open and that the company would be selling off its inventory in a 50% off sale. The website shared the news as well. "We're shutting down our business - thank you so much for the past few years. We appreciate you. No code needed. Shop makeup that acts like skincare," it posted on its homepage. The company is not accepting any returns and is offering free shipping on orders over $100. Youthforia's website still shares Chan's original mission prominently. "I believe that makeup should be an extension of your skincare and that means being able to fall asleep with makeup on without waking up feeling guilty," she wrote. Related: Department store giant offers big discounts to win back customers The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Business of Fashion
7 days ago
- Business
- Business of Fashion
Indie Beauty Brand Youthforia to Close
Independent beauty brand Youthforia announced on Monday that it would shutter its business via an announcement on its e-commerce website and Instagram broadcast channel. Its remaining stock is now on final sale. Founded by Fiona Co Chan in 2021, Youthforia gained early traction with its viral BYO Blush, claims that its cosmetics products were safe to be slept in, and secured a $400,000 investment from Mark Cuban on 'Shark Tank', in 2023, his first deal with a beauty brand on the show. Later that year, the brand later a further funding round with seasoned beauty investors True Beauty Ventures and Willow Growth Partners to support its expansion into Ulta Beauty, Amazon and other retail channels. The closure follows a major scandal in 2024, where the launch of its Date Night foundation received widespread criticism, initially for its limited range of shades for darker skin tones, and then for a subsequent line extension of darker shades which appeared to be solely a jet black pigment. Backlash from influencers, cosmetic experts, and consumers prompted retailers like Credo Beauty, Thirteen Lune, and Revolve to pull the brand from shelves, and online traffic and social media engagement dropped significantly. In addition to appearing on 'Shark Tank', prior to its foundation controversy, the line had been featured in publications such as Allure and Vogue. Learn more: What to Do When a Beauty Product Launch Goes Wrong The backlash that follows a botched product launch can quickly spill over from a bad news cycle to an all-out PR crisis. Beauty brands have the power to foresee these events, and stop them happening, providing they're willing to do the legwork.
