Clean Skin Club’s $32 million raise proves that investors are betting on brands that build loyal customer communities. Here’s how your brand can do the same.

Earlier this year, like many entrepreneurs, the team behind Clean Skin Club—a skincare brand known for its facial wipes—had their sights set on traditional venture capital funding. After all, venture capital has long been the go-to source of financing for growing brands in the consumer space, especially in beauty. But today’s landscape is different. Securing VC funding isn’t as easy as it once was. Rising interest rates, a shaky economy, and slow consumer spending have left even the most promising brands scrambling to find alternatives.

But against the odds, Clean Skin Club secured $32 million in funding during a time when venture capital was drying up. What’s their secret?

The Tightened Investor Landscape

Investor appetite has cooled significantly. According to PitchBook, in 2023, VC funding in the U.S. dropped by 40% compared to the previous year. Valuations have taken a hit, and investors are now placing more emphasis on profitability rather than potential. As funding becomes more selective, many brands are looking to crowdfunding as an alternative. In fact, the global crowdfunding market is expected to reach $13.34 billion in 2023, growing to $35.87 billion by 2032.

Crowdfunding offers brands a chance to test products before going all in—and, crucially, it creates a pool of passionate brand advocates—customers who are invested in the brand’s success, both financially and emotionally. However, this avenue often brings its own challenges: the funds raised can be smaller and less flexible, which may not support large-scale operations or rapid growth. That’s why brands still aim to avoid relying solely on crowdfunding and continue to pursue more traditional sources of funding as their businesses scale.

The Backstory on Clean Skin Club

The clean beauty market is valued at $9 billion, with consumers increasingly seeking natural, sustainable, and non-toxic products. Clean Skin Club tapped into this growing trend early, launching facial wipes that were both effective and eco-friendly after a disappointing spa experience with hygiene. Founded in 2017, the brand quickly gained a loyal following due to its focus on quality ingredients and sustainable packaging. By 2019, Clean Skin Club was experiencing a 150% year-over-year growth, scaling from $2.6 million in revenue in 2020 to $47 million in 2023.

Despite their growth, Clean Skin Club faced the challenge of securing capital to sustain their expansion. In February 2024, they made a strategic move to roll out into Target, proving that they could meet mass retail demand without compromising the integrity of their product quality. This not only showcased their operational scalability but also made them an even more attractive investment opportunity.

What Other Brands Can Learn

This past week, Clean Skin Club raised $32 million in funding from Astō Consumer Partners and Amberstone. The funds will support continued product development, marketing efforts, and expansion into new markets, helping the brand keep pace with the growing demand for eco-conscious skincare products.

Clean Skin Club’s journey to securing funding highlights a key lesson: it’s not just about having a good product; it’s about building a community of loyal customers who are invested in your brand. Investors today are increasingly focused on metrics that signal a brand’s potential for long-term success. In Clean Skin Club’s case, customer satisfaction played a major role. With over 9,200 Clean Towels reviews and an average rating of 4.8 out of 5 stars, the brand demonstrated strong customer engagement. Additionally, 40% to 50% of their online customers repurchase their towels within a few months, which indicates solid brand loyalty and a high degree of customer trust.

By listening to customer feedback, addressing their pain points, and delivering consistent solutions, Clean Skin Club not only built a trusted brand but also cultivated a loyal customer base—a model that is increasingly appealing to investors in today’s climate.

Is Investor Capital Back?

Signs may look optimistic. Amberstone, which invests in beverage and wellness companies, has also backed upscale DTC haircare label Crown Affair. Compared to other beauty industry brands, Clean Skin Club’s $32 million raise stands out—especially for a clean beauty or sustainable skincare brand. For context, Drunk Elephant, another clean beauty brand, raised just $12 million before being acquired.

However, similar brands in this space that have raised large sums share one important trait: they all demonstrated clear growth trajectories and a loyal, engaged following. This raises a significant point: Clean Skin Club’s success is not necessarily a signal of widespread investor confidence in all sectors. Instead, it shows that brands that can prove scalability and consumer demand are the ones attracting investment today.

The Bigger Picture

What can we take away from Clean Skin Club’s experience? In today’s market, success in securing investment requires much more than just a great product. It’s about building a brand that resonates with customers on a deeper level, cultivating long-term relationships with those who are genuinely invested in your brand's success. Investors are now looking for brands with not just good financials, but also customer engagement metrics that signal a high potential for sustained growth.

Crowdfunding offers an alternative path for brands that may not have access to traditional venture capital, allowing them to build a strong community and prove product-market fit before seeking larger investments. As Clean Skin Club’s journey illustrates, securing investment in today’s market is about more than just meeting financial goals—it’s about showing resilience, fostering meaningful connections with consumers, and demonstrating the ability to scale sustainably.

For brands that can balance these factors, the future is indeed bright.

Curious about managing costs as a growing brand? Check out our latest podcast episode, where we dive into balancing meaningful behavior, costs and profits.