Cover Nicolas Travis, founder of Allies of Skin and PSA, suffered severe acne as a teenager and was involved in an accident at 19 that disfigured his face (Photo: Allies of Skin)
Nicolas Travis, founder of Allies of Skin and PSA, suffered severe acne as a teenager and was involved in an accident at 19 that disfigured his face (Photo: Allies of Skin)
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Founded in 2016, the Singapore-started skincare brand Allies of Skin made its first institutional raise from Meaningful Partners in late March to expand its US footprint
In the world of skincare, Allies of Skin has carved a niche for itself with its science-led, supercharged products. The company recently raised $20 million from investment firm Meaningful Partners. It’s the brand’s first raise from an institution, having previously only taken investment from private investors.
Founder Nicolas Travis’ journey into skincare was fuelled by personal struggles. As a teenager, he had severe acne and found the process of finding effective skincare products both frustrating and daunting. It also sparked his interest in skincare. Travis equipped himself with a degree in biochemistry and pharmaceutical science, and a Master of International Business from the Grenoble Graduate School of Business in France, and set out to create solutions that truly work.
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But his life took a dramatic turn when he was 19. He met with a serious accident that disfigured his face and had to undergo reconstructive surgery. The surgery was unsuccessful, leading to multiple infections that further damaged his skin. This affected Travis seriously psychologically, even leading him to attempt suicide several times. It was with the help of a therapist that Travis channelled that pain into helping other people feel more confident in their skin.
In 2016, he launched Allies of Skin with just one product: The 1A All-day Mask. The company kept their offerings lean; with only three products in the first year, gaining a foothold was challenging in an industry dominated by conglomerates driving the belief that more is more. In 2017, four new products were added. Travis recounts the uphill battle in the nascent years of the brand, where he would be the youngest and only Asian in buyer meetings. He faced scepticism about Singapore’s ability to produce an effective beauty brand.
Read more: From Good Light to Allies of Skin, here are 5 beauty brands owned by Asian LGBTQ+ founders
Fast forward to 2024, Allies of Skin has defied those early doubts and is now stocked in over 800 stores across 36 countries and four continents.
Travis also expresses pride in no longer needing to seek out new retailers to work with. Instead, he focuses on deepening existing partnerships and pursuing category leadership in current retailers such as Australia’s Mecca, Dermstore and Cult Beauty in the UK. Earlier this May, the brand launched its first gel sunscreen, which was six years in the making. Allies of Skin’s lineup now spans 19 products.
From Singapore to Berlin
In 2020, Travis moved the headquarters of Allies of Skin to Berlin, Germany and expanded his team of five to 45. The expansion allowed the company to cater to its evolving needs in terms of e-commerce, business development, supply chain, marketing and finance.
Building enterprise value, a measure of a company’s total value, has been a core goal for Travis, who recognised early on the importance of handling key capabilities in-house. Though more capital-intensive initially, this approach would give the company greater control over its operations and customer data.
We speak to Travis about the company’s recent raise in March and the lessons from it that other founders should know.
Read more: What this tech founder realised after his previous business failed
The road to fundraising
What was the goal for your first raise with an institutional investor?
Nicolas Travis (NT): The goal has always been to scale. I knew that if I wanted to penetrate the US market according to my ambitions, I needed the support of institutional funding. The US is one of our biggest markets. Before we got the funding, we were already in 600 JC Penny stores, working with partners like Revolve and had a presence via our direct-to-consumer (DTC) website. It was during Covid that we made the strategic shift to focus on DTC, and I’m proud of that. Our DTC boomed when everybody was in lockdown.
With the funding, we will set up a team in the US, strengthen our DTC model and focus on creating more innovative products.
Did you face any obstacles while fundraising?
NT: Given the tough market conditions, the whole process of fundraising took longer than expected. We were also the first Singapore brand that the investment banking company Raymond James represented. It was a huge endorsement for us and spoke volumes about Allies of Skin. Raymond James [which represented Drunk Elephant and Paula’s Choice] only takes on brands they know they’re going to close.
We also had to look [for funders] outside of Singapore. Our efforts and aspirations didn’t match the capabilities of local funds. Many of them said, “You’re too global for us. We think what you’re doing is incredible but we don’t have the infrastructure [in the US] to support you.” That shows you how nascent the beauty space is [in Singapore].
I didn’t want any a**holes on my cap table
What were you looking for in an investor?
NT: We were at that stage where fit and energy was important. I didn’t want any a**holes on my cap table. Funds have investment committees and investors they need to answer to. Once I realised that and let go of the fact that it had to be perfect, I focused on finding kind people. There will be good and bad days; I know that I will reach the summit and it’s about who I want to take to the summit.
How did you prepare for the pitching process?
NT: You have to let them peek under your kimono. Yes, you have to have an executive summary, a 40 to 50-page dossier of your entire business. But they are also looking to invest in the founder; they’re investing in me.
In the beauty sector itself, people buy brands—and brands are entities with a soul. You need somebody to breathe life into a brand. If you know my story, you will realise that my reasons for starting Allies of Skin stem from personal experiences. For investors who first hear my story, it’s compelling. I also have a tattoo of Allies of Skin [on my arm] and I don’t think you find a lot of founders who do that. To me, I have a skincare brand and that needs to be on my skin because this is bigger than me.
Read more: How to find the right VC for your startup
Above Allies of Skin products is available in more than 30 countries worldwide including Australia, United Kingdom and Germany (Photo: Allies of Skin)
Allies of Skin products is available in more than 30 countries worldwide including Australia, United Kingdom and Germany (Photo: Allies of Skin)
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The terms and conditions
How did you determine the optimal amount of funding to raise in this round? What went into that calculation?
NT: I’ve been doing this for almost eight years now, and we previously raised funds from friends, family and family offices. Actor Henry Golding was one of our earliest investors. I know how much things cost and what we need to spend on.
The same amount of effort is needed to raise $5 million and $10 million, so I decided that the amount should be slightly more than what we need. You don’t need to raise a lot more than necessary because you will be accountable for how you’re going to spend the money. Every investor is looking for a multiplier on their dollar, so you must be certain you can give that kind of return. We calculated how much we need to penetrate the US, to get the right people on board and win globally.
How did you balance negotiating favourable terms with securing the capital you needed?
NT: The founder is the heart and soul of the company. Anybody smart will know that they should get the most out of me, and to do that, I need to feel safe. So the terms have to be good for me as well. We weeded out the very opportunistic investors and those who were only focused on themselves. The ones who made me feel safe gave the best terms, and this was clear from the beginning.
After that, it took a few rounds of negotiation between the bankers and the funders. Your bankers have to have your back—you’ll want someone who is objective on your team.
Read more: How Charlotte Cho of Soko Glam and Then I Met You brought K-beauty to the world
There are many ways to climb a mountain. Just because a path works for one person doesn’t mean it’s going to work for you
Tips for others who are fundraising
What advice would you give to founders who are planning to fundraise?
NT: First and foremost, go back to the product; have really great products. No matter what you’re selling, whether it’s SaaS or a beverage, make sure that your product gives people joy. I don’t just mean, “Oh, somebody’s happy to get it for free.” No, it is if they are willing to part with their hard-earned money to obtain it. Are they willing to tell their mother, sister, cousin or best friend about it? Are they willing to be on a waitlist? Does your product give its intended effect? If it’s skincare does this give them visible improvements?
Secondly, focus on why your company exists. If you’re a passionate founder, your products or services will always start with addressing a pain point. Make that pain point evident because it’s about an emotional connection. If you have a pain point, then somebody else would.
Thirdly, it’s important not to be discouraged or give up during the process. You’re going to hear “no” many times, but it’s not the rejections that make you. Ignore the noise and focus on the yes because you just need one person to open the door for you.
Looking back, would you change or do anything differently?
NT: That’s a great question. I would say no because I look back on the emotional muscles that I’ve gained throughout this entire journey and I’m grateful for every experience.
The team and I have been through such uncertain times, what with Covid happening. We lost a lot of revenue due to an event that we couldn’t control. I look back on it and think that something like that has to happen once because I know now what to look out for.
I always say to the team, we should aspire to be the kind of startup that fails fast and recover faster. That’s how you learn. There’s no such thing as a perfect startup. There are many ways to climb a mountain. Just because a path works for one person doesn’t mean it’s going to work for you.
Work
Based in Singapore, Valerie Lim is the digital editor for Tatler Power and Purpose, Tatler Asia’s dynamic platform spotlighting industry leaders across the region. Valerie leads the charge in shaping the platform’s digital presence, from overseeing and producing website content to curating social media strategies.
With a finger on the pulse of the region, she keeps an eye out for news and trends in business, innovation and leadership, ensuring the brand stays ahead of the curve in delivering stories that inspire and inform its community of changemakers.
About
Prior to this role, she worked in marketing and communications. She considers herself Singaporean at heart and international by passion. You may recognise her from her 15 minutes of fame when she was crowned Miss Universe Singapore 2011. When she is not at her desk, you can find her in the gym or at a yoga studio.
Connect with her via Instagram @msvalerielim, LinkedIn or send press materials, and media invites to valerie.lim@tatlerasia.com
