Should you invest in LUUM lashes?
/The beauty ritual of eyelash extensions is believed to date back to Ancient Egypt. Today, accentuating your look with fluttery lashes is not only popular for special occasions, but also for everyday casual wear.
There are over 34,000 lash extension services offered in the U.S. alone. But, these services can take two hours or more for a single appointment. This is super time-consuming for the consumer and is a low ROI for the service provider.
Until LUUM -the world’s first eyelash extension robot. LUUM has created an AI-based lash robot that can delicately extend eyelashes for customers in beauty salons and well-known beauty retail stores. These lash robots are designed to improve business margins with higher quality and safer lash extension services in as little as 20 minutes. As someone who spent two hours every two weeks getting her lashes done, 20 minutes sounds like a dream I never thought was possible.
LUUM’s patented technology is positioned to revolutionize the beauty industry and the best part is the company is making it possible for you to own equity in the company as an investor.
The market potential for eyelash extensions
The eyelash extension industry in the U.S. is roughly a $2 billion market.
According to a report by Technavio, the global eyelash extension market is set to grow $496.83 million USD from 2021 to 2026, at a CAGR of 4.48%. A CAGR (compound annual growth rate) of around 5% is a healthy indicator of stable growth. Too low of CAGR signifies poor growth potential, but too high could mean the industry is growing at an unsustainable rate. Technavio’s estimates are conservative as some research suggests that lash extensions could surpass botox services, a $20 billion global market.
LUUM’s market research found that the average American spends $1,200 each year. I can attest to this from personal experience. I began getting lash extensions after my girlfriend introduced me to her technician. I loved the way my lashes looked after the service. I especially loved waking up flawless without needing to apply mascara.
But, each appointment took up to two hours - twice a month. As an entrepreneur and executive, I could not justify the time it took to maintain my lashes. My technician, also a business owner, would often share that she was hoping to get her business to a place where she could spend more time with her young son. But, the business model required that she put in a ton of hours to turn a profit.
LUUM’s revolutionary product could be the answer we were all looking for, but never knew was possible.
How does LUUM work?
LUUM’s AI-based lash robot delicately applies eyelash extensions on customers. The lash robots augment the beautician’s services and do not replace the provider. This is a key point as many folks, myself included, visit the spa for the human connection with the service provider as well as valuable advice on styling.
How much does it cost?
The lash robot costs $125,000. For large beauty retailers, LUUM intends to charge only half of this up-front, and even less for smaller stores and studios. LUUM is a substantial investment, however, the potential ROI can be equally substantial.
LUUM states studios and retailers can see 3X as many clients, thereby tripling its bottom line. For many service-providers , this could open the doors for expansion and/or the opportunity for a greater work-life balance.
History of LUUM
LUUM was founded by Nathan Harding, the CEO and co-founder of Ekso Bionics - a company specializing in robotic exoskeletons. While exploring what to do next after exiting his company, Harding came across the Amazing Lash Studio chain.
Harding was not familiar with eyelash extensions but was intrigued by the service. After doing some research, he was convinced that he could add value to the industry with his background in robotics. Harding saw an opportunity to use robots to automate the tedious aspects of lash technicians’ jobs and boost their revenues.
Harding then partnered up with Lynn Heublein, CEO and co-founder of SkinSpirit, a medical aesthetics chain with 20-plus locations, to fill in his knowledge gaps.
Should you invest in LUUM
If you’re wondering, “is LUUM a good investment?”, at Money & Mimosas we encourage you to ask yourself three questions:
What is the potential growth or upside?
What are the potential roadblocks?
How does this align with my values and/or overall investment strategy?
For starters, let’s assess the potential roadblocks.
With any investment opportunity, there are risks and potential drawbacks. At Money & Mimosas, a few drawbacks came to mind during our assessment.
What if eyelash extensions are just a trend and consumers lose interest in the service?
Will consumers feel comfortable with a robot or will they always prefer a human?
Although beauty services tend to be recession-proof, are eyelash extensions able to withstand an economic downturn related to inflation?
Unfortunately, we don’t have a crystal ball, so only time will be able to reveal the answers to these questions. As you review any investment opportunity, we suggest doing a similar assessment of economic factors, industry trends, and consumer behavior to build your sophistication muscle as an investor.
Now, let’s review LUUM’s success thus far and its market potential.
Thus far, LUUM has raised $15 million from investors including Foundation Capital and they have also secured a large investment from Ulta Beauty, the #1 beauty retailer in the U.S. Additionally, they hold 31 patents globally.
LUUM’s vision is to expand from its Oakland, CA headquarters into beauty retailers, medi-spas, hotels, and independent lash studios all over the world. . Additionally, the plan is to be present in established lash chains across the country as a way to augment their staff’s services.
At Money & Mimosas, we are impressed by the number of high-profile investors backing LUUM. These investors include the former CEO’s from Rodan + Fields, drybar, Lancome, Philosophy, and other companies that have revolutionized the beauty industry. The endorsement from these leaders, as well as the investment from ULTA Beauty, is a sign that LUUM is poised to join them as a major player within the beauty industry.
We are also impressed by the market potential. As you read at the beginning of the article, the eyelash extension industry is a $2 billion dollar global industry. Research indicates it is a recession-proof segment similar to other products within beauty.
Lastly, but perhaps most importantly, customers really love the product. The biggest indicator of whether a company in the beauty industry will succeed or not is if its target market actually likes the product. The verdict is that eyelash extension enthusiasts love the lash robot experience.
When it comes to your values, we encourage you to research the team, the company’s overall stance on the causes you care about, and conduct your own due diligence on how LUUM could fit into your own personal investment strategy.
How to invest in LUUM
LUUM is currently offering shares at $1.10 (USD). The minimum investment is $990 (approximately 819 shares).
Your investment will be used to support LUUM’s expansion strategy. The funds from your investment will optimize their technology for faster and even higher quality output. They also plan to expand into additional high-volume market verticals, including leading beauty retailers, medi-spa chains, lash-service providers, luxury hotel chains, and even high-end hospitality destinations.
The process of investing is really easy. Head over to LUUM’s investor page and enter your email information into the invitation box. From there, the website will walk you through the seamless process of becoming an investor with LUUM.
Disclaimers
LUUM is offering securities through the use of an Offering Statement that has been qualified by the Securities and Exchange Commission under Tier II of Regulation A. A copy of the Final Offering Circular that forms a part of the Offering Statement may be obtained from: LUUM
Money & Mimosas May Receive Monetary Compensation By The Issuer, Or Its Agency, For Publicizing The Offering Of The Issuer’s Securities. Money & Mimosas And Issuer Of This Offering Make No Promises, Representations, Warranties Or Guarantees That Any Of The Services Will Result In A Profit Or Will Not Result In A Loss. Any Comments Expressed Herein Are Publisher’s Own And Not Intended As Investment Advice Or A Solicitation.
