Recently, it is reported that after experiencing two rounds of small-scale layoffs in 2023, high-end skincare brand Matter of Fact laid off all remaining employees last week. It is reported that the company had about 13 employees, including headquarters and field teams. Matter of Fact’s flagship product is its Brightening + Firming Essence, which is priced at $92.
The brand was founded by Paul Baek in 2018 and raised $16 million in venture capital over the course of two years. According to foreign media reports, the company attempted to raise new funds at the end of last year. Representatives of Matter of Fact declined to comment on the matter.
Although in August 2023, Sephora became the company’s first retailer, the sales did not meet expectations. It was indicated that while securing contracts with top retailers can increase exposure and sales, the lack of economies of scale within the company may result in a narrowing profit margin. Additionally, young consumer brands, especially those supported by venture capital, are expected to achieve rapid growth in digital audiences and market share, which is challenging to accomplish in the current economic environment.
