It was a busy year for us as at FM Capital Group in 2021. From an investment perspective, it was our busiest year to date for our small team of investors. We saw many more investment opportunities than we had in the past which let us put money to work at a faster clip than in 2020. Hairtelligence was one of those few that we selected for investment. You will soon understand why.
I met the women of Hairtelligence a bit skeptical of the business. They manufacture wigs using artificial intelligence (AI). Ok. But what I couldn’t appreciate from reading the deck initially is the economics involved when AI is introduced to the manufacturing value chain. The costs are reduced so dramatically in an industry that has seen very little price disruption in the supply chain. They can deliver high-end, custom wigs to anyone at mass retail prices. The use of AI to disrupt the market with custom wigs starts with the customer experience. Customers can get a custom fit using the Hairtelligence online application. Long term, using AI throughout the customer experience positions Hairtelligence as a serious player in datasets of diverse women.
Led by the formidable Isoken Igbinedion, the founders are leading the way in disrupting an age-old business. The hair business has had human capital at the heart of its manufacture for centuries. From sourcing the hair to threading the wig to styling and installation, the hair business has human hands involved. By removing as many of those hands as possible, the cost to make the wig drops pretty dramatically. Now it becomes possible for more women to access high-quality hair options. And this is big business. Hair is a $100 billion business globally and Black women are the #1 consumer spending 9 times more on hair care than any other demographic. Who is better positioned to manufacture wigs than the very consumers of those wigs?
Our ability to see the innovation for what it is before it was built speaks to the quality of investors that we work with. We moved quickly once our discussions made the opportunity very clear for us. It took 3 discussions with the team and 2 discussions amongst ourselves to get us through due diligence. We closed in September and our first investor update informed us that Serena had followed us with a subsequent investor. To say that Serena Williams and I are co-investors is kind of dope. And when she wears that hair at Wimbledon, don’t be surprised if its one from Hairtelligence. The product launched in December and customers are raving about it. Follow @hairtelligence to see the products and hear testimonials from a growing cadre of satisfied customers. This investment was our last of 2021 but it has already given us the most upside appreciation in that short time. I look forward to the future, helping them break into more markets beyond the US.
Great work Hairtelligence Team!
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