Skin-care brand Mad Rabbit, which has made a name for itself in the tattoo art category, has raised $10 million in fresh Series A funding bringing its total to $16 million.
Mad Rabbit offers daily body lotion, sunscreen and body wash, among other products, to preserve the color and improve the several-week healing process following a fresh tat. Mad Rabbit launched in 2019 with $600 invested between its co-founders Oliver Zak and Selom Agbitor. They bootstrapped the business until being cast on “Shark Tank,” where Mark Cuban invested $500,000 into the brand for 12% equity. Cuban has further invested in subsequent fundraising rounds. 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 Feb. 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-basedMad 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 touch points have different advantages, and we’re excited to start capitalizing on them this year.”
In 2022, Glossy reported that there had been an increase in venture capital interest in tattoos for at least the prior two years. According to a 2015 Harris Poll, more Americans are getting tattoos, with 29% having at least one. Of millennials, 47% have one, compared to 36% of Gen Xers. What was once considered a body modification only popular among the previously incarcerated, motorcyclists and manual laborers is now more fluid 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 demo 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. The top-selling products for Mad Rabbit 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, with some products that address traditional tattoo needs plus newer use cases. The latter includes skin care 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, svp of marketing at Mad Rabbit.