Mad Rabbit Raises $10 Million in Series A Funding, Plans to Become a Leader in the Beauty and Skincare Market
Skin-care brand, Mad Rabbit, is making a name for itself in the tattoo art industry. The company has recently raised $10 million in Series A funding, bringing its total to $16 million. Mad Rabbit provides daily body lotion, sunscreen, and body wash, among other products, to preserve the color and improve the healing process following a fresh tattoo.
The company launched in 2019 with $600 invested between its co-founders, Oliver Zak and Selom Agbitor. They have bootstrapped the business until they were cast on “Shark Tank,” where Mark Cuban invested $500,000 into the brand for 12% equity. Cuban has continued to invest in subsequent fundraising rounds, and the latest round was led by Lucas Brand Equity, with participation from Mark Cuban, Acronym Venture Capital and H Venture Partners, among others.
According to Glossy’s previous reporting, Mad Rabbit was expected to increase sales by 300% in 2022. Since Mad Rabbit’s last fundraising announcement in February 2022, the brand has expanded to 1,200 GNC stores nationwide, with additional retail expansions to come later this year. Mad Rabbit already retails through Amazon and DTC e-commerce, with each comprising roughly 50% of business sales. The goal is to grow the additional, wholesale channel to roughly 30% of business revenue over the next three years. Part of the latest fundraising will go toward building the wholesale team. L.A. based Mad Rabbit also plans to open a headquarters featuring office space, a tattoo parlor, and a content studio for tattoo artists to use.
“We’re trying to become a more powerful player within the broader beauty and skin-care market,” said Zak. “If your tattoo artist recommends and explains why Mad Rabbit aftercare is the best way to heal your tattoo, it’s a much easier sell into our daily use products. Different touchpoints have different advantages, and we’re excited to start capitalizing on them this year.”
The increasing interest in tattoos has also led to more venture capital interest in the industry for at least the prior two years, as reported by Glossy in 2022. A 2015 Harris Poll revealed that 29% of Americans have at least one tattoo, with 47% of millennials having one, compared to 36% of Gen Xers. Tattoos used to be popular only among the previously incarcerated, motorcyclists and manual laborers, but it is now more common among people from all walks of life and is shedding its stigma. A 2018 study published by researchers at the University of Miami and the University of Western Australia Business School saw no statistical difference in earnings or employment level among U.S. survey participants with and without tattoos.
“Global interest in tattoos has exploded over the last decade and has further accelerated through the last few years,” said Ian Knowles, partner at Lucas Brand Equity. “[Mad Rabbit] is far and away leading the charge in meeting consumers’ and artists’ intense demands and needs, while also building a culturally rich and diverse, community-oriented brand ethos.”
As the brand has grown and established itself, its customer demographic has changed since 2022. Last year, men and women were evenly divided as customers, but women now make up closer to 60%. The core age range remains 25-45, but the bucket of 18- to 24-year-olds is quickly growing as Gen Zers mature into adults seeking tattoos.
Mad Rabbit’s top-selling products are its numbing cream with 5% lidocaine and its tattoo balm to preserve and revitalize tattoos. It will launch an undisclosed number of new products this year, some of which will address traditional tattoo needs, while others will cater to newer use cases. This includes skincare meant to be used after permanent makeup, laser hair and tattoo removal services.
“Tattooing is a very inclusive category; consumers are part of a dynamic group. We want to capitalize on that but also showcase how the industry has changed and shifted, and the mindset of consumers has shifted,” said Erin Murray, senior vice president of marketing at Mad Rabbit.
In conclusion, Mad Rabbit’s recent Series A funding puts them in a strong position to grow and become a leader in the beauty and skincare market. Their innovative products, combined with their expansion plans and commitment to becoming a culturally rich and diverse, community-oriented brand ethos, make them a company to watch in the coming years.
