What $100 Million in New Funding Means for Ipsy, Michelle Phan's Beauty Box Startup Before this week, the company hadn't raised venture funding since 2012.

By Geoff Weiss

Opinions expressed by Entrepreneur contributors are their own.

Ipsy
Ipsy's Jennifer Goldfarb, Marcelo Camberos and Michelle Phan.

Ipsy, the beauty subscription startup co-founded by YouTube prodigy Michelle Phan, has long been nipping at the heels of industry forebearer Birchbox. But while Birchbox has raised $72 million to help fuel its growth, Ipsy executives have said that its own growth has mostly been a byproduct of Phan's massive social reach.

That all changed on Monday when the San Francisco-based outfit announced a gobstopping $100 million Series B funding round -- courtesy of TPG Growth and Sherpa Capital -- which is reported to value the company at $800 million. Ipsy had previously raised just under $3 million.

From Ipsy's perspective, the round wasn't totally about money, says president Jennifer Goldfarb. She said that the company has been profitable for the past three years and counts over 1.5 million subscribers and $150 million in annual revenue. Rather, in TPG and Sherpa, the team saw strategic thought partners with connections and experience in the worlds of beauty and media -- a crossroads at which Ipsy is thriving.

Related: How Ipsy, Michelle Phan's Million-Member Sampling Service, Is Giving Birchbox a Run for Its Money

Such connections could materialize in the form of additional beauty brands added to Ipsy's $10 Glam Bags -- the company's flagship offering, which are filled with five sample-sized products every month. Additionally, Ipsy could harness entertainment industry connections to amp up its network of 10,000 digital influencers, who promote the service among their legions of followers on YouTube and Instagram.

"Women are wanting less and less an authoritative perspective. They want something that's personal, they want to follow someone's advice who they really connect with," Goldfarb says of Ipsy's roots in the social influencer community. This is what differentiates the company from competitors, she says, including a forthcoming subscription service from Sephora called Play!

And being that content is central to Ipsy's mission, Goldfarb says the 3-year-old company plans to pour funds back into its creator community. For instance, Ipsy launched OpenStudios last May, a 10,000-square-foot fully-equipped production studio in Santa Monica, Calif. -- with an accompanying suite of mobile apps -- that is available to creators for free. Future investments could comprise more facilities or more apps, Goldfarb said.

Related: Hayley Barna Steps Down as Co-CEO of Birchbox

Geoff Weiss

Former Staff Writer

Geoff Weiss is a former staff writer at Entrepreneur.com.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Science & Technology

How AI Can Free Up Your Time For Less Busywork and More Innovation

If there's one trait every founder needs, it's a willingness to experiment. Today, experimentation is easier and more accessible than ever thanks to AI.

Making a Change

Learn Up to 56 Languages for Just $35

Get lifetime access to the platform that turns language learning into a game.

Business News

Here Are the 10 Highest-Paying Jobs with the Lowest Risk of Being Replaced By AI: 'Safest Jobs Right Now'

A new report from career resources platform Resume Genius finds the top 10 AI-proof careers expected to see the most growth within the next decade.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Science & Technology

How I Went From Side Hustle to 7 Figures Using These 4 AI Tools (No Tech Skills Needed)

Scale faster, work less and grow a 7-figure business — no team needed.

Real Estate

Why Buying a 'Second Home' First is the New Way to Build Wealth — and Enjoy Free Vacations

The dream of owning a home has never felt more out of reach. So, a growing number of aspiring homeowners are making an unconventional choice.