Beauty
CROWDFUNDING STARTUP, BEAUTY
BACKER, INTRODUCES NEW “COVAID”
CATEGORY ALLOWING SMALL
BUSINESSES IMPACTED BY THE
CORONAVIRUS TO COLLECT
DONATIONS WITH ZERO FEES
Beauty Backer announced COVaid, a new category
on its crowdfunding platform. COVaid provides
access to zero-fee fundraising for small businesses,
entrepreneurs, and startups to keep their business-
es afloat as the world fights the Coronavirus and
offers a way for communities to support local small
businesses.
Beauty Backer is a reward-based crowdfunding
platform exclusively for cosmetics and personal
care campaigns. To help other small businesses,
who may not qualify for other forms of COVID-19
funding, Beauty Backer created a new category and
made it accessible to all!
COVaid is a donation-based category on Beauty
Backer, open to small businesses, entrepreneurs and
startups of all industries – brick and mortar, di-
rect-to-consumer and online. Jacqueline Gutierrez,
CEO of Beauty Backer states: “We’ve carved out
a very specific place for small business owners to
raise funds without paying fees, we don’t want it to
be difficult to get the support you need, we want to
make it as easy as possible.”
Beauty Backer is not collecting any fees on contri-
butions to businesses made through COVaid, how-
ever, Stripe processing fees will still apply. Guti-
errez has reached out to Stripe, without response,
to partner on this initiative in hopes that they will
waive their processing fees.
On platforms like Indiegogo and Kickstarter, the
competition to be noticed and funded is too steep
30 C O S M O B I Z
M A G A Z I N E
for individual beauty products. Approximately
70% of their contributors are men and the success
rate for beauty is only about 25% on Kickstarter,
even though crowdfunding is an important step
on a brand’s journey to success. In the meantime,
the global beauty market is expected to grow from
$432.7 billion in 2016 to $750 billion by 2024.
COVaid allows these businesses to quickly set up a
crowdfunding campaign and start collecting do-
nations from family, friends, loyal customers and
anyone else who wants to keep local businesses
functioning, and serving the community, when so-
cial restrictions are lifted. Gutierrez says: “We want
to be sure that our favorite hair salon, pizzeria or