Quick Takeaways
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Closure Announcement: Diarrha N’Diaye-Mbaye, a pioneering Black woman in venture capital, announced the closure of her beauty startup, Ami Colé, which aimed to provide makeup for darker skin tones.
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Market Struggles: Despite raising over $3 million and gaining celebrity endorsements, the company struggled to compete with larger brands and faced unsustainable growth pressures influenced by investors.
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Impact of Investor Expectations: N’Diaye-Mbaye highlighted friction between her vision for Ami Colé and investor expectations, noting a shift in commitment to diversity and inclusion since 2020.
- Ongoing Commitment: Despite the closure, N’Diaye-Mbaye expressed her belief in the beauty industry and her determination to pursue future opportunities.
The Rise and Fall of Ami Colé
Ami Colé, founded by Diarrha N’Diaye-Mbaye, aimed to fill a significant gap in the beauty industry. It created makeup specifically for darker skin tones, a demographic often overlooked by mainstream brands. After launching in 2021, sales through Sephora soared. Many people admired the brand, as it gained fans like Kelly Rowland and Mindy Kaling. However, after raising over $3 million in venture capital, the company announced it would close its doors this September.
N’Diaye-Mbaye highlighted the challenges that led to this difficult decision. Despite having loyal customers, the company’s rapid growth put immense pressure on its operations. Investors expected quick returns, but competing with established brands proved daunting. The inconsistency in sales complicated the situation further. One week, products sold out; the next, they barely moved off shelves. N’Diaye-Mbaye candidly noted the tension between maintaining a sustainable business and appeasing investor demands, which often shifted in a changing marketplace.
The Broader Implications for Black Founders
The closure of Ami Colé reflects broader trends in funding for Black founders. Recently, venture investments have declined, particularly for startups focused on diversity and inclusion. This downturn comes amid a political environment that often dismisses initiatives perceived as overly focused on DEI. N’Diaye-Mbaye’s experience underscores the precarious nature of startup funding, especially for those challenging the status quo.
Additionally, her reflections on investor relations raise important questions. If venture capitalists prioritize short-term gains over long-term sustainability, they may inadvertently stifle innovation. N’Diaye-Mbaye’s journey highlights the need for a more supportive ecosystem. While Ami Colé may be closing, N’Diaye-Mbaye intends to continue her work in the beauty industry. Her resilience signals hope for future entrepreneurs who dare to tackle the challenges that come with making meaningful change.
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