Brand incubator Gloss Ventures, the parent company of viral peel-off lip liner brand Sacheu Beauty, has landed a $15 million investment.
The growth capital from Salt Lake City-based firm Peterson Partners comes as the patent-pending lip liner has gained much traction on TikTok Shop and Amazon over the past year. Sacheu is also available at Ulta Beauty in the U.S. and Boots in the U.K.
According to Gloss Ventures, Sacheu Beauty, launched in 2021 in partnership with influencer Sarah Cheung and Third Act Ventures, generated more than $40 million in revenues last year and is currently on track to hit $100 million in the next couple of years.
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“We’re thrilled to partner with Peterson Partners and look forward to tapping into their experience and resources as we expand product categories, build the team and scale internationally,” said Quinn Roukema, CEO of Gloss Ventures.
“This is an exciting time for Sacheu as it continues to leverage unique technology and innovative marketing in capturing share. We believe that people make all the difference and are thrilled to be working with Quinn, Sarah and the rest of the team in building the next great beauty brand,” added Brett Stohlton, partner at Peterson Partners. Its previous investments include SolidCore, Glowbar, Madison Reed, Allbirds and Rails.
Initially launching with skin care tools, Sacheu debuted makeup in February 2023 with its Lip Liner Stay-N, $12. TikTok Shop became an eight-figure business for the brand within mere months.
“TikTok is definitely a good chunk of our business,” said Roukema, although he noted other channels are larger.
TikTok went dark in the U.S. Saturday after being banned, but came back Sunday when then President-elect Donald Trump, who was inaugurated Monday, provided the app with necessary assurances that he would extend the period of time before the law’s prohibitions take effect.
Nevertheless, in the case that TikTok is banned in the U.S., the company has a “very strong” contingency plan, according to Roukema. “We can thrive on all channels, but if one falls away, the whole business still is very powerful.”
Gloss Ventures also owns Glossmetics, a skin care brand which was launched 2023, targeting Generations Alpha and Z.
The brand is set to expand into more than 5,000 U.S. retail doors in 2025 and has a big U.K. launch teed up for spring 2025 as well, Gloss Ventures said.
For now, Roukema told WWD it is focused mainly on these two brands and is not working on developing anything new. Instead, the funds will be used to invest in building brand equity, brand positioning and scaling a bigger direct-to-consumer business for both Sacheu and Glossmetics.
In 2021, Gloss Ventures raised $9.5 million in senior debt from a Canadian institution, the name of which remains undisclosed.
In the latest deal, Sacheu was advised by Michael Toure, founder of Toure Capital.
