A New York-based chain of facial spas for the digital generation has established its first location in Southern California and plans to open more with the help of an $8 million funding round led by Venice-based Fifth Wall Ventures.
Heyday Wellness’ new facial shop at 7228 Beverly Blvd. in West Hollywood is its first outside of New York, said Adam Ross, the company’s chief executive and co-founder. Ross said Heyday is building a foundation for moves into other major U.S. cities, including Boston, Chicago, Dallas, San Francisco and Washington, D.C.
The company’s business model aims to smooth the lines between the in-person facial-spa experience and the ease of online appointment-booking and shopping. Heyday collects data on customers’ skin type and facial features, and helps clients keep track of their skin-care regimen between appointments.
Since the first Heyday shop opened on Broadway in New York in June 2015, the skincare chain has drawn venture capital interest. Among its first investors in a $3 million seed round were venture capital firms Lerer Hippeau and Brainchild Holdings.
In the latest Series-A round, Fifth Wall was joined by the previous funders (Lerer Hippeau and Brainchild Holdings) as well as new investors M3 Ventures and CircleUp. Fifth Wall Principal Kevin Campos has joined Heyday’s board to help map out growth.
The $8 million in new funding will go toward the company’s brick-and-mortar expansion in Los Angeles and other parts of California. Ross, a former mergers and acquisitions banker in New York, said, “Our strategy for Heyday is to replicate what was done in New York. …We see a path to more doors in L.A. than New York.”
The company’s current crop of six storefronts, each about 2,000 square feet in size, are generating a total of “slightly north of $10 million” for the company in annual revenue, according to Ross.
Heyday is exploring expansion in L.A. neighborhoods known for steady foot traffic, including Silver Lake, Santa Monica, Brentwood, Century City, Culver City and Beverly Hills, as well as downtown to cater to its fast-growing professional crowd.
“The goal is to reach the right level. You don’t want to oversaturate the area,” said Brendan Wallace, co-founder and managing partner with Fifth Wall, which targets its investments in digital-friendly companies building a physical presence.
Heyday also announced a new hire in its West Coast operation − Ashley Peterson, who will execute Heyday’s expansion plans. Peterson previously served as the vice president of experience at Sweetgreen Inc. where she helped build the Culver City-based fast-casual salad chain to a national business with nearly 100 stores from a small regional brand with fewer than 20. Heyday said Peterson will bring the same strategic approach to its growth in Southern California and beyond.
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