On the latest episode of Behind the Buyouts, Rich Gersten and Cristina Nuñez, co-founders of True Beauty Ventures, discussed launching and scaling a venture capital firm dedicated exclusively to beauty and wellness as well as the industry’s evolving M&A landscape.

Founded in 2020, True Beauty Ventures typically invests $1 million to $5 million in equity in emerging brands with proven formulations and strong brand loyalty. The firm has invested in companies such as hair care brands K18 Inc. and Crown Affair and sunscreen maker Vacation Inc.

“We want to invest in the absolute best brands, [and] when you’re investing early, there’s the art and the science to it,” Nuñez said. “But there are some proven frameworks that we use to evaluate opportunities — positioning, product, people, performance and partnership.”

New York-based True Beauty raised $42 million for its first fund in 2021 and $75 million for its second fund in 2024.

Gersten and Nuñez traced their partnership from L Catterton Management Ltd. and Tengram Capital Partners LLC to founding True Beauty, building on decades of investing and operating experience. While the firm has attracted significant attention in the beauty world, it has still faced the same challenges as other emerging investors trying to gain traction among limited partners.

“It’s incredible to live in those two alternative universes where you’re rock stars and your brand is strong in one and you’re an unknown entity in the other,” Gersten said.

Listen to the podcast with Rich Gersten and Cristina Nuñez below:

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