Ulta Beauty launched a $20 million VC fund called Prisma Ventures, which focused on digital innovation and tech startups in beauty. 80% of the fund would go to four key areas namely personalised technology, metaverse, tech-powered services, and social commerce. 20% would go into determining disruptive practices in beauty and retail. Prisma Ventures has already invested in startups like Revea, LUUM, Haut.AI, and ReStyle. Ulta Beauty’s previous investments include Adeptmind, Mink, and Iterate.ai. The company allowed the last to test its low-code AI innovation platform as it also aims to form lasting relationships with startups it invests in. This gives them the access to market, innovation team, and consumer insights of Ulta Beauty including its million loyalty program members. Although not all, the company does enlist partners from some of the brands it invests in. For example, it featured a skin testing scan on its app developed by Haut.AI, while delivering insights into product preferences. In 2018, alongside GlamST, the company also acquired QM Scientific which contributed to its recommendation software. The other acquisitions by big companies in similar ventures include Modiface by the L’Oreal group and Sparty by Bold.

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