Seven-figure seed financing for IQONIC.AI - AI company from Berlin

• The AI company IQONIC.AI secures seven-figure seed funding. The fresh capital will enable the start-up to expand its AI models (e.g., in the hair and health sectors) and tap into new markets.

• Brandenburg Kapital, the health tech investor YZR Capital and ARVE Capital have now joined the existing investors in the pre-seed financing. Existing investor APX (the early-stage investor of Axel Springer and Porsche) is also investing again.

• Just a few months after the pre-seed financing, the start-up was already profitable.

Potsdam, 24.10.2023 – IQONIC.AI's software enables suppliers of hair, skin and nutritional supplements to offer their customers a special shopping experience: With the help of specially developed AI algorithms, skin and/or hair are scanned and individually suitable products are suggested. This reduces trial and error purchases, making the industry more sustainable in the long term. At the same time, problems that could have a medical background are also identified. Customers are then made aware of the need to have these problems clarified - a new approach to prevention.

The startup has now received a substantial seven-figure seed financing from well-known investors. Existing investors such as Accel, APX, Thomas Hayo, Michael Schummert and Jens Apermann have been joined by VCs YZR Capital, ARVE Capital and Brandenburg Kapital. IQONIC.AI plans to use the fresh capital to integrate new AI modules into its portfolio and increase its market share in various markets. Sales in the USA in particular are to be driven forward. The company intends to further establish itself there after acquiring its first customer.

The new way to personalize

To date, IQONIC.AI has offered its AI-based skin analysis as an SaaS solution for brands and retailers in the beauty segment. "We use technology and innovation to increase customer satisfaction, reduce purchasing the wrong items and create a sustainable, inclusive and diverse future for the industry," say the founders. Now the company is expanding into another area: hair. Customers can now book the relevant modules. Founder Martin Pentenrieder explains: "For example, we offer an analysis of hair type and density." With this, the company is tapping into another billion-euro market: by 2023, sales in the hair care sector in Germany alone will amount to around 3.06 billion euros. So far, there is no such offering in Germany. A European market competitor is Haut.AI; the largest competitor worldwide is Perfect Corp. Further adjacent business areas are to be developed in the future. These include the health aspect in particular: AI-supported prevention in everyday life is intended to relieve the burden on medical specialists, especially in the field of dermatology.

New business model

A lot has happened since the startup's last financing round in May 2022. In the pre-seed financing, APX, Accel, Thomas Hayo, Michael Schummert, Jens Apermann and other well-known investors invested a high six-figure sum. At that time, Maria-Liisa Bruckert and Martin Pentenrieder's company was still operating under the name SQIN. Since the beginning of the year, they have been operating under the name IQONIC.AI. "The name change was an important step for us. The name SQIN was too focused on the topic of skin - but that is no longer our sole focus. Our business model has also changed massively. We no longer only use our algorithms in our own applications, but also offer them as an SaaS solution," explains Maria-Liisa Bruckert. Almost half a year after the pre-seed financing, the company was already in the black with customers from various markets.

Markus Barnickel, Investment Manager at Brandenburg Kapital, adds: "We are delighted to welcome such an innovative company as IQONIC.AI to our portfolio. In the future, the centerpiece of the product, the AI, will be further developed at the Cottbus site in cooperation with the BTU Cottbus-Senftenberg and the Lausitzer Zentrum für Künstliche Intelligenz (Lusatian Center for Artificial Intelligence - LZKI). IQONIC.AI's approach will make dermatological treatment accessible to everyone and drive digitalization forward in the healthcare sector." 

About IQONIC.AI

IQONIC.AI is a project of SkinTech Corp. GmbH. The AI company was founded in February 2021 by Maria-Liisa Bruckert and Martin Pentenrieder. It addresses the challenges of the beauty industry with its technology solutions. The start-up specializes in developing its own machine learning algorithms that make personalization possible. The skin and hair characteristics of customers are examined using AI-supported image analysis. On this basis, personalized recommendations for action and products are then made.

Press Contact: Lisa Terks (PR & Communications Manager); Email: lisa.terks@iqonic.ai

About Brandenburg Kapital/ILB:

Brandenburg Kapital GmbH is a subsidiary of the Investitionsbank des Landes Brandenburg (ILB). Since 1993, as the venture capital arm of ILB, it has supported Brandenburg-based companies by acquiring equity stakes and equity-like investments. As a public venture capital company, experienced lead investor and active partner, Brandenburg Kapital ensures a strong equity base for start-ups and small and medium-sized enterprises in the State of Brandenburg on the basis of a stable group environment. The Early-stage and Growth Fund is currently available in the amount of around 100 million euros for this purpose. The funds for the Brandenburg Kapital fund, which was set up on behalf of the Brandenburg Ministry of Economics, are currently provided by the European Fund for Regional Development and by the ILB. Through ILB's investment activities, 264 companies have so far been supported on their growth course with around 305 million euros. In addition, private investors have invested more than 690 million euros in the companies to date.

For more information, visit: www.brandenburg-kapital.de