Black female-founded beauty startup raises $1m in seed funding
Clean health and beauty company Naturaz has announced it has successfully raised $1 million in seed funding. The company, which specializes in 100% vegan hair care products for curly hair, received significant support from the Philadelphia investment community, with key contributions from the Philadelphia Community Impact Fund and other impact and angel investors.
This funding milestone positions Naturaz for expanded growth and highlights the ongoing challenges Black female founders face in securing venture capital.
A significant milestone for Naturaz
Founded and led by Mumbi Dunjwa, an award-winning chemist from the American Chemical Society with a background in chemistry, pharmaceuticals, healthcare, and technology, Naturaz has developed a product line specifically designed to deliver and sustain more moisture for curly hair. The company's approach to hair care has resonated with consumers seeking high-quality, effective products that prioritize the health of textured hair.
According to the press release, Dunjwa's expertise has been instrumental in the company's growth, allowing Naturaz to stand out in a competitive market. The $1 million raised in the seed round will enable Naturaz to execute its retail expansion strategy, bringing its vegan hair care products to a broader audience across the United States.
The funding will also support the company's continued efforts to develop and introduce new 100% vegan, non-GMO, and scientifically formulated products to meet curly hair's unique needs.
Overcoming funding challenges
The success of Naturaz in securing $1 million in funding is particularly noteworthy given the broader context of fundraising challenges for female founders, especially Black women. According to a recent report by PitchBook, companies founded solely by women receive less than 3% of all venture capital investments, as detailed in the company's press release. As a result, Black female founders, in particular, face significant hurdles in accessing the capital needed to grow their businesses.
Dunjwa's achievement in raising $1 million is, therefore, a testament to the strength of the Naturaz brand. By building strong relationships with investors and connecting them with the company's brand strategy and growth trajectory, Dunjwa overcame the barriers that many Black female founders face in the venture capital space.
The role of Philadelphia's Investment Community
The support from the Philadelphia Community Impact Fund, which invested $300,000 in the round, was crucial to Naturaz's fundraising success. The press release reported that this investment, along with contributions from the Bucks County Industrial Development Authority (IDA) and other investors, helped Naturaz raise over $700,000 in the last six months, including $500,000 in July alone. The strong backing from Philadelphia's investment community highlights the city's commitment to supporting innovative and socially inclusive companies like Naturaz.
In a press statement, Dunjwa shared "we are so grateful that the Philadelphia investment ecosystem has been so supportive of Naturaz and our mission," adding that "the funds that have come from the Philadelphia Community Impact Fund, in addition to other investors who have been instrumental in this process, will go a long way in ensuring Naturaz products become available and accessible to curly-haired women and their families across the United States," and that "we're hopeful that sharing our story serves as an example and an inspiration for female entrepreneurs."
With the newly secured funding, Naturaz is well-positioned to expand its retail footprint and continue developing high-quality, effective products for curly-haired consumers. As the company moves forward, it plans to close this round of funding soon and continue formulating innovative products that meet its customers' evolving needs.
