The Funding Disparity: More Than Just a Money Problem

For years, the conversation around Black beauty brands has focused on one thing: funding. It’s true that capital remains a major hurdle—Black-founded beauty brands received just 2.5% of venture capital investment in 2023, despite Black consumers accounting for 11% of total beauty spending​. But the challenge runs deeper than just investment.

The real issue is what happens after the check clears.

Unlike their white counterparts, Black beauty founders face a higher burden of proof when pitching to investors​. They’re expected to educate funders on the market viability of their products, even as Black consumer spending power reaches record highs.  On top of that, many founders bootstrap their businesses for longer, only seeking capital when it becomes an urgent necessity—often at a disadvantageous stage​.

And even when they do secure investment, the terms are often less favourable. Some brands enter restrictive third-party retail agreements that prioritise investor returns over sustainable growth. Others expand too quickly, without the infrastructure to support scaling beyond the initial funding round. "Investors need to stop viewing Black-owned brands as niche and start seeing the vast potential for universal appeal."

That’s where Rose Neal Collective (RNC) comes in.

Rose Neal has become a go-to platform for Black beauty founders looking to grow and scale their businesses. Founded on the belief that everyone deserves to feel seen, valued, and celebrated, RNC was created to elevate underrepresented voices while empowering beauty professionals to thrive in an ever-evolving industry. More than just an investment partner, the team focuses on transforming the beauty landscape—reshaping how BIPOC consumers experience retail, equipping brands with long-term strategies, and mentoring industry professionals at every stage.

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We spoke to Karess Rosemé and Dwight Allen ONeal, the co-founders of Rose Neal Collective, to truly understand why funding is just the beginning for black beauty brands and the impact of smart scaling in 2025 and beyond. “A win for us goes beyond funding,” they tell us. “It’s about cultivating individuals and brands that continue to drive forward and elevate the beauty landscape so there’s lasting impact.” And here's how...

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The Realities of Scaling

The biggest misconception about funding is that money solves all problems. In reality, investment is just a tool—it’s the strategy behind the money that determines a brand’s long-term success. "The funding gap persists because investors take a one-size-fits-all approach, and that doesn’t work for emerging brands," says Rose Neal. Instead, scaling requires:

1/ Strong retail strategy — knowing when (and if) to enter third-party retail, and avoiding the pitfalls of early expansion.

Early expansion into third-party retailers can backfire if brands aren’t operationally prepared. Without a plan for logistics, marketing budgets, and retailer expectations, founders can quickly find themselves overwhelmed by demand they can't meet—or worse, buried in hidden costs that eat away at profitability.

2/ Operational efficiency — ensuring fulfillment, manufacturing, and inventory management align with growth.

Managing fulfillment, inventory, and manufacturing at scale requires deep industry knowledge—knowledge that many Black founders are forced to navigate alone. Without the right infrastructure, brands risk either underproducing and missing opportunities or overproducing and suffering losses.

3/ Market positioning beyond the hype cycle — social media virality is fleeting, but brand longevity requires infrastructure.

Social media can create moments, but without a clear brand identity and a strategic expansion plan, virality is short-lived. Many Black beauty brands face the challenge of being celebrated in niche spaces while struggling to break into the mainstream. Longevity requires infrastructure—consistent retail execution, field team training, and a strong consumer education strategy that extends beyond initial buzz.

RNC helps brands bridge these gaps through hands-on mentorship, data-driven insights, and a roadmap for scaling beyond the startup phase.

The Impact of Strategic Scaling

RNC drives real change through direct in-store retail support. By embedding retail education and operational strategy into the brands they work with, RNC ensures that growth is sustainable—not just situational. When one of their textured hair clients implemented in-store strategy support, their retail performance increased by 70% compared to locations that did not receive direct guidance. This happened with just one visit per month—a clear sign that retail success isn’t just about getting on shelves; it’s about ensuring the brand thrives once it's there.

Another cornerstone of RNC’s strategy is its Account Associate (AA) program, which equips beauty brands with the field team support necessary to drive long-term retail success. Rather than relying solely on a brand’s internal team, the AA program trains industry professionals who can advocate for brands at the retail level—ensuring stronger consumer engagement and consistent sales.

This approach has been instrumental in generating over $300,000 in AA-driven sales and more than $3 million in total brand revenue. In addition, RNC has trained over 4,780 Beauty Advisors across the U.S. and Canada—extending the influence of Black-owned beauty brands far beyond a single point of sale.

The goal is to create sustained consumer connection—not just a quick boost in numbers. By embedding real strategy into brand-building, RNC ensures that Black-owned beauty brands don’t just get visibility—they get staying power.

Repositioning Black Beauty Beyond the "Niche" Narrative

The challenge for Black-owned beauty brands isn’t just about gaining investment or retail access—it’s about navigating an industry that often views them through a limited lens. Too often, Black beauty brands are categorized as “niche,” despite their ability to resonate with a far broader audience.

This perception creates barriers, particularly when seeking investment. Some VCs still hesitate to back Black-owned beauty brands unless they see clear evidence that they can scale beyond the Black consumer base. Meanwhile, mainstream brands have the freedom to enter and exit the multicultural beauty space at will, often profiting from trends without long-term commitment.

This is why Black beauty brands must be intentional about their expansion strategies. Thoughtful product development, smart retail partnerships, and consistent consumer engagement are key to ensuring that brands grow without losing their identity or community trust.

What Founders Need to Know

For beauty entrepreneurs navigating this space, the biggest takeaway is growth should be intentional. RNC offers key insights:

• Understand your data. Your sales numbers, consumer insights, and performance data should guide every expansion decision. "Investors may focus on numbers, but what truly sets you apart is your ability to show how your brand resonates with people," co-founder, O'Neal tells us.
• Know your retail readiness. Retail partnerships should align with your brand’s ability to deliver—not just with external demand. "Highlight the impact your brand is making, it’s about showing not just what you’ve achieved but what’s possible," he says. "Don’t be afraid to start small [...] Crowdfunding and strategic partnerships can be powerful ways to build both resources and relationships."
• Don’t chase virality—build longevity: Brands need more than a moment. If you can’t sustain demand, you’ll end up losing money on every sale.

"RNC is not about just launching products or services—we are about launching people."

At the heart of this approach is mentorship, infrastructure, and a long-term vision—exactly what RNC is bringing to the table.

So, What Comes After Funding?

While investment remains crucial, as data and real-life cases show, the real game-changer for Black beauty brands is access to smart scaling strategies. This means more accelerators, better retail education, and targeted support—because financial backing without business backing leads nowhere.

That’s why RNC is expanding its impact beyond funding, focusing on initiatives that provide brands with both the strategic insight and hands-on experience needed to scale sustainably. One of these is the Sales Dashboard program, which is designed to help brands track their performance and make data-driven decisions at every stage of growth. “This forward-thinking expansion allows us to offer a customized, analytics-driven approach that helps brands better understand their performance, identify growth opportunities, and make data-informed decisions,” explains the RNC team.

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But data alone isn’t enough. For emerging brands, real-world retail experience is just as critical as analytics. That’s where RNC’s Collective Pop-Up initiative comes in—a curated, apothecary-style retail experience that serves as both a visibility platform and a mentorship hub. “Our Collective Pop-Up is more than just a physical space; it is a dynamic incubator where up-and-coming brands can gain visibility, engage directly with diverse audiences, and benefit from strategic mentorship,” they tell us.

By combining data-backed strategy with immersive retail opportunities, RNC is ensuring that brands are not just securing investment, but building the operational resilience needed to thrive long-term. Because in the end, the brands that succeed won’t be the ones that raise the most money—but the ones that scale with strategy.