Matter of Fact Lays Off Remaining Staff

After going via two smaller rounds of layoffs in 2023, premium skincare line Matter of Reality made all remaining workers redundant final week, an individual with data of the matter advised The Enterprise of Magnificence. It had round 13 workers, together with its head workplace and subject crew.

The corporate, which was based in 2018 by Paul Baek, had raised $16 million in enterprise capital over two years, together with a $6 million spherical that was secured in March 2023. In line with paperwork seen by The Enterprise of Magnificence, the corporate tried to lift contemporary funding on the finish of final 12 months. A consultant for Matter of Reality declined to remark.

Although it added Sephora as its first stockist in August 2023, gross sales failed to satisfy expectations, the identical supply confirmed. Matter of Reality’s hero product is its Brightening + Firming Serum, which makes use of patent-pending components and retails for $92.

Securing a high retailer contract, whereas a boon for publicity and gross sales, could cause revenue margins to slim as the corporate lacks economies of scale. Furthermore, younger shopper manufacturers – particularly venture-backed ones – are anticipated to develop quick, each by way of their digital viewers and in addition their market share, which is tougher to do on this financial local weather.

Matter of Reality’s rising pains are being felt by many early-stage manufacturers throughout the trade, as borrowing and digital promoting prices have spiked and class competitors stacks up. Younger firms are additionally extra uncovered to the results of rate of interest adjustments, which may trigger money owed to limit money circulate.

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