Cribcut, a Halifax-based mobile hair styling service, has raised $800,000 in the second tranche of a pre-seed financing, bringing the round to $1.06 million.
The investors included Ramen Ventures, Innovacorp, Valhalla Angels, Georgian Angel Network, Broken Glass Angels and fellows and associates with Creative Destruction Lab.
Founded in 2017, Cribcut provides a software-enabled marketplace that connects mobile hair stylists with their customers. It currently serves four Canadian provinces and 27 U.S. states.
Led by CEO David Howe, Cribcut will use the funds raised to expand its presence across North America and grow its teams in Halifax and Toronto.
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Cribcut, a Halifax-based company that has built an international marketplace to connect mobile hair stylists and clients, announced today that they have closed a second round of pre-seed financing of CAD$800,000 (bringing the company’s total pre-seed funding to CAD$1,060,000). Investors in this equity round include Ramen Ventures, Innovacorp, Valhalla Angels, Georgian Angel Network, Broken Glass Angels, and several fellows and associates from the prestigious Creative Destruction Lab, including David Wilson, Frank Sobey, and Tom Hickey.
“Cribcut empowers stylists – often women – to become entrepreneurs and achieve freedom, flexibility, and financial success. We love the team and their mission and we’re excited to support them,” said Adam McNamara, partner, Ramen Ventures, & former VP product, Shopify.
Cribcut co-founder and CEO, David Howe, believes that the salon industry is fundamentally broken; salon-based stylists earn an average of $24,000 per year, giving up more than 50 per cent of their commission to the salon owner. Cribcut has set out to democratize their hair business by allowing a hair stylist to retain 100 per cent of their earnings, while only paying out a small weekly (USD $49) software subscription fee. Cutting out all real estate costs, and creating economies of scale in marketing for stylists, allows Cribcut to retain a very healthy margin while providing stylists with everything they need to run and grow their mobile businesses. The average full time stylist on the Cribcut platform is earning over $44,000 per year.
“Cribcut is a lot more profitable than working in a salon. I am in complete control of where my money goes. A lot of my clients tell me, ‘you couldn’t pay me to go back in the salon,’ and I keep telling them you couldn’t pay me to go back either,” said Rachelle Dulong, Cribcut mobile stylist.
This funding comes on the heels of six straight months of 40%+ growth in both stylists and revenue. Proceeds of the investment will be used to expand Cribcut’s presence across North America (currently serving 27 states and 4 Canadian provinces). The team will also grow both its Halifax and Toronto offices by 50% over the next nine months.
“Cribcut helps hairstylists run mobile salons, disrupting the $300+ billion haircare industry. And we do it without needing to own a single salon, blow dryer, or pair of scissors. Cribcut has done for hair stylists what Uber has done for the average car owner, and what Airbnb has done for the average homeowner,” said David Howe, Cribcut CEO.
Cribcut is a software-enabled marketplace for mobile hair stylists. Our offering includes scheduling software, client acquisition/marketing, and education; empowering mobile hairstylists. Clients think of Cribcut as a full-service mobile hair salon. They can access our stylists whether at home, office or hotel.
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