Gerry Harvey and Unilever pile into local hair care start-up Straand
Harvey Norman’s Gerry Harvey and Katie Page have invested in Straand, a hair care and scalp brand that has also snared backing from the venture capital fund operated by global consumer goods giant Unilever.
The funding round of $4 million caps an active year for Australian beauty brands. In August, the founders of Bondi Sands sold that self-tanner and skincare brand for $450 million, while Melbourne’s Aesop was acquired by L’Oréal in June for $3.7 billion.
Sarah Hamilton, one of Straand’s co-founders, with Gerry Harvey. Wolter Peeters
Unilever Ventures first invested in Straand last year. They are investing again alongside Mr Harvey and Ms Page, and will use the new financing to expand microbiome scalp care in Sephora, where it is stocked online and will soon be available in stores in Australia. It is already stocked by Adore Beauty.
Gerry Harvey, executive chairman of Harvey Norman, said he took advice from his wife, Ms Page, and his son on where to place money. He said the interest in Straand was based on its fast growth in the category.
“A lot of the decisions I make nowadays is on the basis of not just me on my own, but I want three or four of the others, or two or three of the others, to support what the decision is. Sometimes I might have something that on my own might I might do, but then the other two will vote against me,” Mr Harvey told The Australian Financial Review. “We’ve got so many people coming to you every day with a different proposition.”
Earlier this year, Sephora agreed to stock Straand products in stores in Australia, the United Kingdom and Asia. Straand, founded by Jeremy Hunt, Sarah Hamilton, Tim Brown, Nick Morris and Meagan Pate, is part of a niche but growing category of scalp care.
Ms Hamilton, who also founded skincare brand Sand & Sky and beauty subscription service Bellabox, said dandruff and broader scalp concerns had created a large opportunity for the company.
“Sephora is really pushing into haircare and especially a Gen Z led haircare brand and scalp care as a category is hugely important for them,” she said.
“There is truly whitespace because there’s Selsun Blue, Head & Shoulders and Nioxin. There are a few brands that are really focusing on scalp concerns. You have to solve a problem for someone.”
Just 18 months after launching a handful of products, Straand has lofty aspirations for more than $25 million in sales within five years.
The investment in Straand is a first in the self-care space for Mr Harvey, whose other investments are related to property and agriculture. He owns a baby cumber producer at Peter’s Ridge called Qukes.
Mr Harvey said he “doesn’t care how good the deal is”, adding that he just wouldn’t invest in anything in which he has no personal interest.
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