Ulta Beauty has officially launched its Prisma Ventures capital fund with a $20 million commitment to support retail innovators creating technology to refine the retail product discovery process, personalization and convenience.
Prisma Ventures will partner with early-stage startups that are primarily Series Seed and Series A technology companies working with personalized and data-driven technology; AR, VR and the metaverse; technology-powered custom beauty products and in-store services; and social commerce.
Other investments will be reserved for opportunistic, disruptive technologies beyond the core digital strategy, the company said.
The beauty retail giant announced at its investor day in late 2021 that it would form the venture capital entity. In the interim, the company has formed partnerships with and invested in startups including Haut.ai, Adeptmind, Revea, LUUM and ReStyle. Ulta (Nasdaq: ULTA) said the investments have impacted personalization and diagnosis within its digital skin and hair experiences.
Prisma Ventures hopes to nurture long-term, strategic partnerships, the company said, pairing Ulta Beauty’s size and scale with the agility and singular focus of tech startups, the company said. Beyond capital investment, Prisma Ventures will provide access to Ulta’s expertise and resources, including the beauty retailer’s innovation team, consumer insights and in-market testing opportunities.
“We believe this fund presents opportunities for creative disruptors to further propel the industry forward,” said Prama Bhatt, chief digital officer, Ulta Beauty. “We set out to build lasting relationships with startups, welcoming them into our ecosystem, co-creating and experimenting in ways that tap each other’s expertise and ultimately leverage our resources to imagine – and reimagine – what’s next for retail and beauty.”
Bolingbrook, Illinois-based Ulta Beauty (Nasdaq: ULTA) operates more than 1,300 retail stores across 50 states.
