Birchbox

Birchbox was established in September 2010{{cite web|last=Wortham|first=Jenna|title=Birchbox Aims to Simplify the Business of Beauty|url=http://bits.blogs.nytimes.com/2011/04/20/birchbox-aims-to-simplify-the-business-of-beauty/|work=The New York Times|date=20 April 2011|accessdate=27 October 2011}} by Katia Beauchamp and Hayley Barna, both graduates of Harvard Business School.{{cite web|last=Rubin|first=Courtney|title=Hayley Barna and Katia Beauchamp, Founders of Birchbox|date=27 June 2011|url=http://www.inc.com/30under30/2011/profile-hayley-barna-and-katia-beauchamp-founders-of-birchbox.html|publisher=INC.com|accessdate=27 October 2011}} In October 2010, Birchbox's initial funding began with $1.4 million in seed funding from investors including First Round and Accel Partners.

In August 2011, Birchbox received $10.5 million in Series A Funding.{{cite web|last=Zelman|first=Josh|title=(Founder Stories) Birchbox: On The Second Wave Of Ecommerce|url=https://techcrunch.com/2011/10/10/founder-stories-birchbox-ecommerce/|publisher=TechCrunch.com|accessdate=27 October 2011}} In April 2014, it raised $60 million in Series B funding, led by Viking Global Investors, and saw participation from First Round Capital, Accel Partners, Aspect Partners, and Consigliere Brand Capital.

In July 2014, the company opened its first brick-and-mortar store in New York's Soho neighborhood.{{Cite web|title = With a wired store, Birchbox rethinks brick-and-mortar retail|url = http://fortune.com/2014/07/11/birchbox-soho-store/|website = Fortune|access-date = 2016-01-14|last = Griffith|first = Erin}} As of 2014, Birchbox was valued at $485 million.Perez, Sarah. April 21, 2014. Techcrunch "[https://techcrunch.com/2014/04/21/birchbox-raises-60-million/ Birchbox Raises $60 Million]"{{cite web|url=http://mashable.com/2014/04/21/birchbox-raises-60-million/|title=Birchbox Raises $60 Million to Shake Up the Beauty Industry|last=Fiegerman|first=Seth|date=April 21, 2014|publisher=Machable|accessdate=22 April 2014}} In October, it partnered with Soldsie to launch its first Instagram shop. The shop allows Instagram users interested in Birchbox products to purchase directly through Instagram by leaving a comment on a photo with the hashtag #birchboxcart.{{cite web|last=Burza|first=Pawel|title=Birchbox letting consumers shop through Instagram|url=http://evigo.com/17195-birchbox-letting-consumers-shop-instagram/|publisher=Evigo|accessdate=29 October 2014}}

In 2015, Barna stepped down from the co-CEO role at the company and joined the First Round Capital firm as a venture partner.{{cite web|last1=Primack|first1=Dan|title=Birchbox Co-Founder Hayley Barna Joins First Round Capital|url=http://fortune.com/2016/02/16/birchbox-co-founder-hayley-barna-joins-first-round-capital/|website=Fortune.com|accessdate=8 March 2016}} In January 2016, the company cut 15% of its staff.

Five months after raising $90 million, it had a minority stake acquired in October 2018 by Walgreens, whose stores began offering its service.{{Cite web|url=https://techcrunch.com/2018/05/01/birchbox-ownership-changes-hands-after-beauty-business-does-recap/|title=Birchbox ownership changes hands after beauty business does recap – TechCrunch|website=techcrunch.com|language=en-US|access-date=2018-05-02}}{{cite news |title=Walgreens takes a minority stake in Birchbox, which will now come to its stores |author=Sarah Perez |url= https://techcrunch.com/2018/10/04/walgreens-takes-a-minority-stake-in-birchbox-which-will-now-come-to-its-stores |work=TechCrunch |date= 2018 }} However, Birchbox cut 70% of its staff of 230 employees in January 2020. {{Cite web|url=https://expandedramblings.com/index.php/birchbox-statistics-facts/|title=Birchbox Statistics|last=Smith|first=Craig|date=28 October 2019|website=DMR}}{{Cite web|url=https://www.forbes.com/sites/eshachhabra/2015/09/23/key-to-success-beauty-box-company-birchbox-says-its-not-just-about-the-box/|title = Key to Success: Beauty Box Company Birchbox Says It's Not Just About the Box|website = Forbes}}

After being purchased by start-up FemTec for $45 million in October 2021,{{Cite web|url=https://www.forbes.com/sites/laurendebter/2021/10/28/birchbox-acquired-by-femtec-health-next-chapter-healthcare/?sh=138dc1ae1df0/|title = Birchbox Has A New Owner. Its Next Chapter: Healthcare|website = Forbes}} the online subscription service was acquired in 2023 by Retention Brands.

As of Jan 2021, Birchbox has 300 thousand subscribers and 500 thousand active customers. Birchbox's incentive is that the consumer will choose to purchase the full-sized product of whatever sample they've grown to like from the Birchbox website afterward.{{cite news|last=Cohen|first=Deborah|title=Makeup startup thinks inside the box|date=17 November 2010|url=https://www.reuters.com/article/us-column-cohen-birchbox-idUSTRE6AG3B620101117|agency=Reuters.com|accessdate=28 October 2011|archive-date=13 October 2011|archive-url=https://web.archive.org/web/20111013201451/http://www.reuters.com/article/2010/11/17/us-column-cohen-birchbox-idUSTRE6AG3B620101117|url-status=live}} As of 2021, about 5% of box subscribers went on to make full-size purchases.{{Cite news|url=https://www.bloomberg.com/news/articles/2016-06-03/birchbox-finds-cute-boxes-filled-with-makeup-aren-t-enough|title=Birchbox Finds Cute Boxes Filled With Makeup Aren't Enough|date=2016-06-03|newspaper=Bloomberg.com|access-date=2017-01-24}}

After subscribing, the customer takes a "beauty profile" survey that aims to customize their future selections to suit their preferences better.{{cite web|last=Nape|first=Denise|title=Birchbox lets you give new high-end cosmetics a trial run|url=http://beaconnews.suntimes.com/entertainment/7943097-421/birchbox-lets-you-give-newhigh-end-cosmetics-a-trial-run.html|publisher=Chicago Sun-Times|accessdate=27 October 2011|archive-url=https://web.archive.org/web/20111111022652/http://beaconnews.suntimes.com/entertainment/7943097-421/birchbox-lets-you-give-newhigh-end-cosmetics-a-trial-run.html|archive-date=11 November 2011|url-status=dead}}

• Online Retail

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• {{official website|https://www.birchbox.com}}

Category:Cosmetics companies of the United States

Category:Subscription services

Category:2023 mergers and acquisitions