A nail salon might seem like an unusual investment for a venture capital firm—and it is.
Or at least, it used to be. In the seven years since Boston’s Cue Ball Capital made its first investment into next-generation nail salon startup MiniLuxe of Newton, other venture firms have also jumped into the nail salon-oriented space. Andreessen Horowitz has invested in Julep, a salon that’s launched a line of nail polishes, while Bain Capital Ventures has backed Manicube, provider of in-office manicures.
“We’ve always felt that this is an area of tech-enabled retail,” said Tony Tjan, CEO and managing partner at Cue Ball Capital.
Tuesday, MiniLuxe disclosed a $23 million Series C round that aims to take its “Starbucks of nail salons” concept to the national stage. The chain currently has eight locations in the Boston area, including one in the Back Bay; starting in the first quarter of 2015, MiniLuxe plans to begin adding locations around New England before expanding further afield. (The number of planned locations isn’t being disclosed for now.)
The company’s aim since the start has been to redefine what it means to get nail service and improve on many of the weaknesses of traditional nail salons. MiniLuxe is more hygienic due to using medical-grade instrumentation, and uses only non-toxic chemicals.
The company also uses technology to improve the experience for customers; online booking, use of data to understand customer preferences and staffing models, and a mobile app (launching in November).
Worth noting: the service isn’t just for women, as our own Alex Weaver can attest to.
The new funding was led by Horowitz Group — an investor in Lemonade, a West Coast restaurant group — and Cue Ball, whose partners include former Chipotle Chairman Mats Lederhausen. The round also included Murano Group, Silverado, Beechwood Capital, Valley Oak and MIT Media Lab Founder Nicholas Negroponte. It brings the total funding to date for MiniLuxe to $35 million. The company employs 160.
Image courtesy of MiniLuxe
