Ingredients.com Plans Growth Recipe

Having helped build iVillage.com into the 35th most trafficked site on the Internet, Ingredients.com co-founders Katherine Legatos and Amy Ryberg now hope to cultivate a new Internet property that manufactures and distributes personal care products over the Internet.

Leveraging the new media pedigree of its founders and a novel business plan, New York-based Ingredients.com raised $4.5 million July 21 in its first institutional round of venture financing.

Scripps Ventures, the venture capital arm of E.W. Scripps Co., led the Series A round, which also included a commitment from Primus Venture Partners. As part of the deal, Doug Stern, president of Scripps Ventures, and Benjamin Burditt, the firm’s vice president, will join the Ingredients.com board of directors. Primus Managing Partner Jonathan Dick also received a seat on the board.

Proceeds from the investment will develop the Ingredients.com web site, which is expected to launch in October, and fund the manufacture of a signature product line. At least in its initial stages, the company intends to operate without offering established brand-name products.

“Few people are creating the category of personal care for this medium,” Legatos said. “The already sizable profit margins in this space can generate mega-profits if you can create your own products.”

Ryberg said Ingredients.com will likely raise an additional $8 million in venture funding before the end of the year to invest in sales and marketing.