Some girls are annoyed that lipsticks solely are available shades of pink, pink, and nude. Plus, they’ve pointless chemical compounds. The Lip Bar provides a wider vary of cocktail-impressed colours, minus the irrelevant parts. Founders Melissa Butler and Rosco Spears pitched on Shark Tank however didn’t get a deal. As of 2024, The Lip Bar is price an estimated $15 million.
About the Founders
Melissa Butler and Rosco Spears are Brooklyn natives. The former at the moment resides in Detroit, Michigan, whereas the latter is in Rutherfordton, North Carolina. Melissa graduated from Florida A&M University and Rosco studied at Ferris State University.
Before turning into an entrepreneur, Butler labored on Wall Street for years. She was a licensed inventory dealer who operated as a monetary analyst at Barclays financial institution.
Though she has a grasp’s diploma in prison justice, Rosco was extra bent on being an artist. She labored as a stylist for firms corresponding to Alice + Olivia, Brooks Brothers, and Macy’s.
Founding the Company
As an empowered woman, Melissa didn’t like that lipstick got here solely in restricted colours. She believed that girls may very well be whoever they needed to be, so she began a lipstick line that’s self-expressive and responsibly made.
Melissa began making lipstick in her kitchen. Furthermore, as a result of she didn’t recognize the dangerous chemical compounds present in typical make-up merchandise, she used vegan-pleasant substances. Butler employed Rosco to function the artistic director of The Lip Bar when it launched in 2011.
They began promoting by way of their web site and created an app the place patrons might customise the colour of their lipstick. After two years in enterprise, the corporate made $107,000 in gross sales.
Shark Tank Appearance
Melissa and Rosco had bother getting distribution with main retailers. In 2015, the duo appeared on season six of Shark Tank, looking for $125,000 for 20%.
Lori Greiner was the one feminine Shark current and was the one who might correctly perceive the potential of the product. Cuban and Herjavec didn’t suppose they have been advertising the product appropriately and didn’t just like the branding.
The girls revealed they have been making round $8,000 per thirty days and have been nonetheless creating the merchandise by hand. Kevin made numerous impolite discouraging feedback to get fun which the viewers didn’t like.
Sharks additionally didn’t like their concept to construct a cellular lipstick cellular. Melissa and Rosco went residence and not using a deal however later, the Sharks would remorse not investing!
After Shark Tank
Despite Kevin’s nasty feedback, Melissa and Rosco didn’t hand over hope and used it as motivation. As the enterprise expanded, Butler moved to Detroit to deal with pitching to magnificence influencers and retailers.
She tracked down folks to contact on LinkedIn and chilly-emailed them. Butler constantly adopted up and bought a breakthrough with a purchaser from Target. In 2016, they launched on Target’s web site, and in 2018 made it into 44 shops.
After self-funding the enterprise for six years, they raised outdoors cash for the primary time. In 2018, the New Voices Fund (owned by Sundial/Unilever) invested $2 million into the beauty model. The funding was used to broaden into retail and is now in over 1000 shops nationwide together with Target and Walmart.
In September 2024, The Lip Bar closed a $6.7 million funding spherical with Pendulum because the lead investor. This capital will likely be used to enhance distribution for The Lip Bar and Thread Beauty, in addition to beginning a 3rd magnificence model. The firm has offered over 2 million models and is making an estimated $1.6 million in annual income.
