As is the case with any great consumer brand, it’s difficult to completely explain the power of Skims.
TL;DR
- Skims, Kim Kardashian's brand, achieved a $5 billion valuation after securing $225 million in funding.
- The brand's success is attributed to a blend of aspirational marketing and user-friendly pricing and sizing.
- This valuation highlights the enduring appeal and market receptiveness of strong consumer businesses.
- Skims anticipates exceeding $1 billion in net sales by the end of 2025.
As a millennial woman, I can confirm the strong appeal. My closest friend and I don't just follow Skims' collaborations and new releases; we share links instantly, discussing not whether to purchase, but which items. For my 30th birthday, I made it known to anyone who would hear: my sole wish is to relax on the beach in a sweatsuit designed by Kim Kardashian.
What makes Skims so remarkable, in essence, is its successful blend of aspirational marketing, exemplified by collaborations like the one with Dolce&Gabbana, and its user-friendly approach to pricing and sizing. Given its appeal, the announcement yesterday that Skims secured $225 million in funding at a $5 billion valuation was exciting. Goldman Sachs Alternatives spearheaded this investment round, and the company anticipates exceeding $1 billion in net sales by the close of 2025.
“Skims speaks to the power of a consumer product that resonates with a lot of people,” said Shamin Walsh, BAM Ventures managing director, via email. “This is entirely different from the old direct-to-consumer days where they’re buying revenue. Skims has clearly cracked a formula. If they are profitable and producing that much revenue, then it actually seems like a reasonable multiple based on the strength of the brand and the way they’re expanding.”
Beyond Skims, positive developments in the consumer sector were scarce for a period. The surge in direct-to-consumer (DTC) ventures resulted in companies like Glossier achieving inflated valuations they couldn't sustain, revealing that venture-backed consumer enterprises couldn't operate under software industry norms. Consequently, venture capitalists (VCs) and limited partners (LPs) temporarily deprioritized consumer investments. (Silicon Valley Bank data indicates that consumer-centric VC funds saw $65 billion in closures in 2021, dropping to just $9 billion by 2024, a seven-year low.) However, according to Michael Duda, managing partner at Bullish, the consumer market never truly disappeared.
“Consumer never went away,” said Duda. “Consumer’s a big, honking, huge TAM to say the very least. I think narratives have shifted to decline, and even loss of respect. But if your fund size is appropriate, consumer will be back. And I get it, it became really hard for investors who don’t have the background. If you’re a general investor, consumer can be really hard to measure.”
Consumer venture math presents challenges: it's a fiercely competitive arena with substantial customer acquisition expenses initially, alongside the elusive elements of taste and creation. Nevertheless, the vast market potential is evident on a larger scale, as Duda highlights, “68% of the U.S. Economy is powered by consumer spending” and that “it’s a $19.8 trillion category that just became too boring for some investors.”
“There’s a reason why the largest companies in the world are consumer companies,” added BAM’s Walsh. “When something hits a powerful level of volume, especially when it’s a product that’s part of habitual behavior, such as underwear, skincare, and beverages, it’s like there’s a crazy snowball effect that takes brands to the next level.”
There have been some undeniably killer consumer exits this year—Hershey’s $750 million acquisition of organic popcorn maker LesserEvil, PepsiCo’s $1.95 billion acquisition of bright soda brand Poppi, and e.l.f. Beauty’s $1 billion acquisition of Hailey Bieber’s Rhode. (Rhode added about $52 million—roughly 17%—to its new parent’s Q2 2026 net sales, on extremely efficient marketing spending and good margins.)
By all accounts, these ventures are well-managed enterprises that are currently very fashionable. However, consumer preferences are inherently dynamic, not only due to evolving tastes but also because customers frequently exhibit brand-loyalty flexibility. Consequently, operating a highly-efficient business in the most conventional manner is crucial for achieving success.
“82% of U.S. Consumers are up to switching out brands,” said Duda. “We’re becoming less and less brand loyal. The day that consumers get rational, I’m probably out of a job! But we don’t see that changing anytime soon. The narratives will shift from time to time, but the opportunity is and always will be there.”
Consumers' readiness to change brands could pose difficulties, yet substantial prospects exist for those capable of securing that loyalty, however uncommon it might be. This is because I'm certain of one thing: Skims and I are committed for the long term.
See you tomorrow,
Allie Garfinkle
X: @agarfinks
Email: [email protected]
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Venture Deals
- d-Matrixa Santa Clara, Calif.-based firm that develops an AI inference platform for data centers, secured $275 million in Series C financing. The round was led by a group of investors, which included BullhoundCapital, Triatomic Capital, and Temasek led the round and were joined by others.
- SKIMS, a Los Angeles, Calif.-based shapewear company, raised $225 million in funding. Goldman Sachs Alternatives led the round and was joined by BDT & MSD Partners.
- Beacon Biosignals, a Boston, Mass.-based AI-powered brain health company, raised $86 million in Series B funding from Innovia, Google Ventures, Nexus NeuroTech Ventures, and others.
- Sweet Security, a Tel Aviv, Israel-based runtime CNAPP and AI security solutions platform, raised $75 million in Series B funding. Evolution Equity Partners led the round and was joined by Munich Re Ventures, Glilot Capital Partners, and others.
- GC AI, a San Francisco-based AI platform for in-house legal teams, raised $60 million in Series B funding. Scale Venture Partners and Northzone led the round and were joined by Sound Ventures, Aglaé Ventures, and others.
- Tavusa San Francisco-based company that creates AI companions capable of proactive task management and interpreting human body language secured $40 million in Series B financing. CRV led the round and was joined by Scale Venture Partners, Sequoia Capital, Y Combinator, HubSpot Ventures, and Flex Capital.
- Code Metal, a Boston, Mass.-based verifiable code translation platform for mission critical industries, raised $36.5 million in Series A funding. Accel led the round and was joined by RTX Ventures, Bosch Ventures, and others.
- Attentive.ai__pLH_1__, a Wilmington, Del.-based company that creates AI-driven takeoff software for field service and construction businesses, secured $30.5 million in Series B investment. Insight Partners led the round and was joined by Vertex Ventures, Tenacity Ventures, and InfoEdge Venture Fund.
- Arrived, a Seattle, Wash.-based platform for fractional real estate investing, raised $27 million in funding. Neo led the round and was joined by Forerunner Ventures, Bezos Expeditions, Core, and others.
- Evidium, a San Francisco, Calif.-based health care AI company, raised $22 million in Series A funding. Health2047 and WGG Partners led the round and were joined by Interwoven Ventures and Mindset Ventures.
- Humanixa cybersecurity platform based in San Francisco, which detects cyber threats targeting employees, secured $18 million in Series A and seed funding. Acrew Capital led the Series A round and BoldStart Ventures led the seed round.
- The Snow League, a New York City-based winter sports league, raised $15 million in funding from 359 Capital, BITKRAFT Ventures, Wise Ventures, and others.
- Joy, a San Francisco-based platform that connects parents with parenting experts, raised $14 million in Series A funding. Forerunner Ventures and Raga Partners led the round and were joined by Magnify Ventures, Ingeborg Investments, and others.
- Modulight Biotherapeutics, a Boston, Mass.-based developer of medicines for people with neurological disorders, raised $12.2 million in seed funding. Jibe Ventures and LocalGlobe led the round and were joined by Nexus Neurotech Ventures, RedSeed VC, Secret Chord Ventures, and others.
- Deductive AI, a Mountain View, Calif.-based AI-powered root cause analysis and resolution platform, raised $7.5 million in seed funding. CRV led the round and was joined by Databricks Ventures, Thomvest Ventures, and PrimeSet.
- District Cover, a Nashville, Tenn.-based insurance agency focused on covering small businesses in underserved urban communities, raised $6 million in funding. IA Capital led the round and was joined by Mosaic, Impact America Fund, and existing investors.
- Dryfta San Francisco-based company that builds an AI platform for automating human decisions in manufacturing operations secured $5 million in seed funding. General Catalyst led the round and was joined by Neo, Sandberg Bernthal Venture Partners, and angel investors.
- Adclear, a London, U.K.-based AI-powered platform designed for financial promotions compliance, raised £2.1 million ($2.7 million) in seed funding. Outward VC led the round and was joined by AFG Partners, Tenity, and others.
Private Equity
- Clearlake Capital Group agreed to acquire Pathway Capital Management, an Irvine, Calif.-based private market solutions platform. Financial terms were not disclosed.
- Corsica Technologies, backed by Inverness Graham, acquired AccountabiliT, a Scottsdale, Ariz.-based managed service provider. Financial terms were not disclosed.
- Harbor Global, a portfolio company of BayPine, acquired Encoretech, a New York City-based technology training firm for the legal sector. Financial terms were not disclosed.
- Manna Tree acquired a minority stake in Plant People, an Austin, Texas-based gummy supplement brand. Financial terms were not disclosed.
Other
- Stingray Group agreed to acquire TuneIn Holdings, a San Francisco-based live audio streaming and ad monetization platform, for up to $175 million.
People
- Cowboy Ventures, a Palo Alto, Calif.-based venture capital firm, hired Donna Boyer as a venture partner. Previously, she was with WeightWatchers.
- Great Hill Partners, a Boston, Mass. And London, U.K.-based private equity firm, hired Phil Galati as a growth partner. He most recently served as president and CEO of Accelerate Learning.
- Khosla Ventures, a Menlo Park, Calif.-based venture capital firm, hired Adrian Nicholas Radu as a partner. Previously, he was with Lightspeed.
- Vesper Company, a New York City-based private investment firm, hired Ravdeep Chanana as a partner on the company’s investment team. Previously, he was with Gemspring Capital.