US-based beauty products retailer Ulta Beauty has officially launched a digital innovation-focused investment unit called Prisma Ventures to modernise the online and in-store shopping experience.
The vehicle is capitalised to the tune of $20m and will focus on seed and series A rounds for companies developing technology related to virtual and augmented reality, metaverse and what it calls personalised and data-driven technology. It will also invest in social commerce and technology-powered beauty products and in-store services.
Since being initially announced during Ulta’s investor day last year, Prisma Ventures has made six investments such as artificial intelligence-powered skin analysis platform Haut.AI, content creator-focused augmented reality product placement platform DPlace and Revea, which provides personalised skincare services.
Other portfolio companies include virtual hair-styling app ReStyle, AI-equipped product discovery platform Adeptmind and eyelash extension robotics company Luum.
“We believe this fund presents opportunities for creative disruptors to further propel the industry forward,” said Prama Bhatt, Ulta Beauty’s chief digital officer.
“We set out to build lasting relationships with startups, welcoming them into our ecosystem, co-creating and experimenting in ways that tap each other’s expertise and ultimately leverage our resources to imagine – and reimagine – what’s next for retail and beauty.”
In addition to funding, the CVC aims to give portfolio companies access to markets as well as data from its 37 million loyalty members. It is also keen to jointly develop technology with its portfolio companies.
Ulta said that the fund will select its investments based on five key metrics, namely its alignment with its investment themes, its intellectual property differentiation, the strength of the business plan, due diligence and compatibility of leadership and culture.
