Three Ships Beauty reels in CA$3.5M for better skincare

 Three Ships Beauty reels in CA$3.5M for better skincare

In the photo: Laura Burget (left) & Connie Lo (right). Image courtesy: Three Ships Beauty

Toronto-based natural skincare brand, Three Ships Beauty, has recently announced a CA$3.5 million funding round. BDC Capital’s new Thrive Venture Fund led the round, in which some strategic angel investors also participated.

The company calls itself an effective, transparent and natural skincare brand, all made in Canada. It focuses on natural skincare, claiming to create products with science-backed, plant-derived, filler- and chemical-free ingredients, with fully-recyclable packaging. Its product range includes vegan & cruelty-free skincare cleansers, toners, serums, creams, and masks.

Connie Lo and Laura Burget co-founded the company in 2017, when both were in their early twenties. Both have received recognition and several accolades for their work over the years. These include Forbes 30 Under 30 Class of 2022, the EY Entrepreneur of the Year in Ontario (2022), and RBC Canadian Women Entrepreneurs of the Year (2021). They also took the company’s pitch to CBC’s Dragons’ Den in 2020 and secured a CA$350k royalty deal from Jim Treliving.

In January 2023, Three Ships Beauty became a Certified B Corp, meeting high standards of social and environmental performance, accountability, and transparency. The company sources say that it is one of just 102 skincare companies globally to have met these standards.

Also read: Innovative beauty startup raises new funds for expansion

Three Ships Beauty now targeting growth & expansion

Three Ships Beauty sells its natural skincare products through hundreds of physical stores across North America. Whole Foods, Hudson’s Bay, The Detox Market, Credo Beauty, Indigo, and Holt Renfrew have carried the company’s products. The company now plans to use the latest funding to further expand in the US market and invest in brand & growth marketing. It also aims to strengthen the team with strategic hires to continue scaling retail and e-commerce growth.

While making the announcement, Connie said that this was a huge milestone for the company and BDC Capital’s repeated backing will help them expand their market reach. Laura added that BDC Capital shared the company’s values and it was geared up to expand its brand presence & awareness. Mona Minhas, Partner at Thrive Venture Fund, mentioned that they were exited to have witnessed the company’s growth from up close and looking forward to their next phase.

It’s worth noting that BDC Capital’s Thrive Capital had also led the previous funding round of the company. Announced in January 2023, the company had raised CA$1M then. Martin McCourt (former CEO of Dyson) and Tara Bosch (founder of SmartSweets) had also participated in that round.

Also read: BDC launches new CA$50M vehicle to invest at early stage

United States an obvious destination for Canadian beauty companies

Estimates suggest that the Canadian Beauty & Personal Care market is worth US$8.83 billion today, but the projected growth rate is about 1.6% only. At the same time, the same market in United States is roughly US$100 billion, multifold in size (as is with most industries).

The rapid shift towards natural and organic brands has allowed several new-age vegan beauty brands to establish a toehold in Canada. However, for continued growth, many have set their eyes on penetrating the market across the southern border fairly early.

The Tech Factor had written about the CA$11M fundraise by Omy Laboratoires about a year ago. The company also had plans to expand across North America after their funding. Interestingly, BDC Capital’s Thrive Venture Fund had also participated in that investment.

Apart from Three Ships and Omy, Basd, Boreal Folk, Birch Babe Naturals, BKIND, and Wildcraft are some other Canadian new-age vegan or natural beauty brands.

Also read: The impact of AI on the beauty industry by Rachelle Seguin, Co-founder of Omy Laboratoires


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