SEED FUNDING EXPERT ADVICE
EXPERT ADVICE
What does a seed funding journey look like?
Male grooming brand Cleverman has secured nearly $2m in seed funding; here’s how it got ‘investment fit’
consumer insights to provide men with customised grooming solutions, initially focusing on hair and beard dye. With plans to expand the brand into new categories and distribution channels, including Amazon, Cleverman recently announced that it had received close to US$2m in seed funding, led by L’Attitude Ventures.
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In this article, Carlos Barreto, the founder of Cleverman, talks us through the process.
How long did the seed funding process take for this first series and what did it entail? Our seed funding process spanned around ten months. It was an intense period of developing a compelling pitch deck, refining our business plan, conducting detailed market research and networking extensively to find potential investors. The truth is, we had to navigate a difficult environment due to several external challenges like supply chain disruptions and inflation, which led to a tightened scenario for venture capital. This situation compelled us to switch gears, prioritising sustainable revenue and operational optimisation. Although it required knocking on more doors and holding more meetings, the entire process built a much stronger network for us, laying the groundwork for future funding rounds.
How did you decide the company was fit for seed funding? We believed Cleverman was ready for seed funding when we had a validated business concept, a solid business plan, and demonstrated customer interest and sales. We had successfully launched our subscription model, built several iterations of our e-commerce platform and developed formulas that truly resonated with consumers. We primed
cosmeticsbusiness.com
leverman is a D2C brand at the intersection of technology and personal grooming. Launched two years ago, it leverages
Carlos Barreto, founder, Cleverman Carlos Barreto is an entrepreneur, and a P&G and Revlon industry veteran. He founded Cleverman in March 2021
becleverman.com
utilised to fuel our growth. Key areas include expanding our product portfolio, investing in technology to boost customisation, amplifying our marketing efforts to reach a broader customer base and building a robust team to drive our vision. We have already expanded our team and are actively working on new products and exciting marketing initiatives, including launching on Amazon.
Cleverman for seed funding by showcasing our growth potential, demonstrating our understanding of the male grooming market and highlighting our commitment to delivering innovative and personalised solutions.
How important is it that investors share the same values and direction as a brand?
Aligning with investors who resonate with our brand’s values is crucial. L’Attitude Ventures is not just a source of capital but a partner bringing invaluable industry expertise, strategic guidance and a shared vision for growth. Their focus on supporting Latinx and diverse entrepreneurs aligns perfectly with our ethos.
What are your intentions for the nearly $2m raised?
The funds raised will be strategically
At what stage in your growth will you know you’re ready for series A? We believe we’ll be ready for a series A round once we have achieved the following key objectives: • Customer acquisition and retention: Our primary focus is on improving our metrics related to customer acquisition and retention. Currently, 75% of our revenue comes from returning customers. We aim to further satisfy their needs, implement successful retention programmes and continue optimising our DTC business.
• Expansion into new categories and channels: We are working to prove that Cleverman can expand into new categories and channels. We have built a team focused on business development, innovation, and exploration of new distribution channels. Before proceeding to series A, we aim to demonstrate that we can expand our brand to meet customer needs in an omnichannel proposition and into new categories, services and experiences.
• Sustainable growth and profitability: Our third pillar is sustainable growth. We are working on optimising our supply chain, reducing costs without compromising quality, improving operations and reducing customer acquisition costs. By series A, we aim to show that we are a business that delivers sustainable growth and profits
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