Five years ago, when Allison Conrad found a gray hair, she went to her long-time hairstylist to see if there was a way to prevent more from appearing. Neither of them could find one, she told L.A. Inno. So, together, they set out to create a line of products to accomplish that.
The result is L.A. startup Arey.
The company recently raised a seed round of more than $4 million, co-led by Greycroft and Female Founders Fund. The round was over-subscribed, with an original target of $2 million.
Most of the funds will be used on R&D, said Conrad, who serves as CEO.
Conrad has started two other companies in the fashion and beauty realm, and has been involved in a handful of other startups in the direct-to-consumer space as an employee, consultant or advisor.
“Working in the DTC startup space significantly shaped how we created and how we run (Arey),” Conrad told L.A. Inno. “We are very focused on unit economics and recurring revenue, as the business is mostly a subscription-based business.”
How it works
Arey is a unisex brand that targets aging hair with a “proactive, science-driven approach,” Conrad said. Its patent-pending Arey Complex is composed of antioxidants and a "clinically-effective" peptide, which the company claims helps to slow down and re-pigment gray hairs.
Conrad said the products work best on people with up to 30% gray hair. So, its main target market is those in their late 20’s to mid-to-late 40’s.
The core package includes a daily supplement, as well as a topical serum. The company also offers shampoo, conditioner, a UV-protectant leave-in conditioner and a recently-launched dry shampoo.
Health claims
Conrad said Arey’s products are healthier than at-home hair dyes.
“Traditionally, hair dye has been the only solution to grey hair, other than acceptance, and studies have shown that there is an increased risk of cancer from using at-home hair dye,” Conrad said.
All of Arey’s ingredients are “backed by science and are screened by our medical and scientific advisory team,” she added.
The products are vegan, gluten-free, made from clean ingredients, and are not tested on animals, she said.
Funding
Conrad invested some of her own capital into starting the company, which launched in 2021.
After launch, the team raised some money from friends and family and business school classmates of Conrad’s from Stanford.
Greycroft and Female Founders Fund led the recent seed round. Greycroft has offices in L.A. and New York City.
“Here at Greycroft, we’re excited to support Arey in their effort to rethink the graying process of hair and how we can better address it,” Greycroft Principal Alaina Hartley, who’s based in L.A., told L.A. Inno. “The demand for Arey demonstrates how those with aging hair have been looking for a more innovative solution.”
Arey’s total funding now stands at $5 million — $4.5 million in equity financing and $500,000 in debt financing, Conrad said.
The global hair care market exceeded $82 billion in 2022. The IMARC Group expects the market to reach more than $107 billion by 2028, with a growth rate of 4.4% from 2023 to 2028.
Benefits of being in LA
Arey is located in Los Angeles, “an area very focused on health and wellness, which are part of our ethos,” Conrad said.
