| FemTec Health sold off subsidiary Birchbox's assets to Retention Brand for an undisclosed sum.
FemTec acquired the subscription beauty box startup Birchbox in late
2021 for $45M, a fraction of its peak valuation of $485M. The company
made the move to satisfy creditors. - Birchbox
—started by Harvard Business School graduates Katia Beauchamp and
Hayley Barna—pioneered the beauty subscription box business model,
selling designer beauty products for $10 per month.
- The company raised $97M from investors, including a $60M Series B round led by Viking Global Investors in 2014, giving it its peak valuation.
- Other notable backers of the firm include Accel Partners, First Round Capital, and Walgreens.
- Struggles
surfaced at the firm after several companies started offering similar
products. In 2016, at least 300 subscription beauty service providers
were competing in the market, per the WSJ.
- Viking Global provided a $15M buyout in 2018 after it ran low on cash and struggled to find a buyer.
- However, the company continued to lose subscribers, forcing downsize its global team by 25% in early 2020.
- Birchbox's troubles continued even after FemTec acquired the firm in 2021.
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