No brand in the CBD skincare market has established a clear, differentiated value proposition. This creates a significant opportunity in the premium segment of the market, which currently has no quality, trusted brands offering truly revolutionary and effective skincare products.

The CBD and skincare markets are vast, global, and high growth. The CBD skincare market reached approximately $645M in 2019 and is expected to grow at a CAGR of over 33% through 2027. The global market for skincare is massive, reaching $148B USD in 2020, and remarkably resilient, growing 3-6% per year for the last decade (and declining less than 1% during the Great Recession.)

CBD’s recent legalization in the US and Europe has created a vacuum - skincare conglomerates are risk-averse and are waiting to buy the “winners,” as they frequently do. In 2019 alone the global giants purchased the following upstart beauty brands: Tatcha, Drunk Elephant, Lord Jones, Dr Jart+, Kylie Cosmetics, Filorga, Elemis, Morphe, Olaplex, and others. 

Brands have popped up to serve many aspects of this new industry, but virtually all CBD products on the market today target its effects inside the body - in the form of tinctures, vapes, gummies, and other edibles. Few companies have applied the many proven benefits of CBD to the skin, the body's largest organ!

Existing indie brands that have ventured into CBD skincare have failed to establish a clear differentiated value proposition. Almost all existing CBD skincare brands use "off-the shelf" products and just add CBD oil. Most existing brands are founded by skincare enthusiasts, and do not have a strong executive team, celebrity connections, or the requisite scientific foundation. This creates a significant opportunity in the premium segment of the CBD skincare market, which currently has no quality, trusted brands offering truly revolutionary and effective skincare products.

We set out to create revolutionary skincare formulations. By combining the most effective legacy skincare ingredients with our organic CBD, all delivered deep into the skin via our proprietary BioAdvance CBD delivery system, we created what we believe is the best skincare available on the market.

We only know one way to do business and that's to offer the very best possible products to our customers, to create truly effective skincare products that maximize the healing power of CBD, to be responsible corporate citizens, to be inclusive and representative, and to make a significant difference in the lives of all our stakeholders - our customers, employees, community, and of course our investors!

Starting with this belief, we set out to make revolutionary skincare formulations, sourcing the highest quality ingredients, organic CBD, and iconic packaging. Our scientists created highly effective products that reduce signs of aging and help create beautiful, young-looking skin, with a significant focus on reducing inflammation – the root cause of all skincare concerns.

Regular CBD oil does not penetrate the skin barrier, offering few benefits to the beauty consumer. To solve this problem, we created our proprietary BioAdvance CBD® delivery system which has been shown to deliver up to 30x more CBD into the skin than regular CBD oil, in half the time. We paired organic, water-dispersed CBD with the best proven skincare ingredients including hyaluronic acid, seaweed extracts, natural botanicals, and fruit extracts, squalane, Jojoba oil, and more. This synthesis of the most effective legacy skincare ingredients and our organic CBD, all delivered deep into the skin via the BioAdvance CBD delivery system, creates what we believe is the best skincare available on the market.

The luxury CBD skincare market is wide open for a strong, trusted, science-based brand. We created American Vanity to meet the significant unmet need for highly effective, science-based CBD skincare that penetrates deep into the skin to deliver undeniable results.

We raised a seed round of $600,000; established a deep partnership with our manufacturer (our largest seed-round investor); created a strong team with skincare, sales, marketing, retailing, and operations expertise; formulated a complete line of highly effective skincare products; and have started recruiting a tight passionate team of influencers and affiliates.

Competitive Advantages:

• Intellectual property - our complete product line features unique formulations and proprietary BioAdvance CBD® delivery system that brings CBD deep into the skin to provide its incredible benefits.

• Deep bench - our founding team brings deep expertise in skincare, marketing, sales, and finance, making us positioned for rapid growth.

• Iconic branding - our products and packaging receive rave reviews from skincare experts and consumers. Our distinct packaging is proudly displayed on bath vanities and retail showcases.

• Strong exit potential - recent transactions in beauty value exits at 8-12x revenue. In the last few years Big Beauty has acquired Lord Jones ($300M), Drunk Elephant ($845M), Kylie Cosmetics ($1.2B), KKW Beauty ($1B), Tatcha ($500M), and many others.
• Formulation and manufacturing - we have established a deep partnership with our manufacturer. As a seed-round investor they have a vested interest in the success of AV. This provides us with an unfair advantage - including free formulation and testing, best in industry pricing, and no minimum order quantities.
• Agile R&D - we have in-house capabilities to develop, test, and launch new products in 3-6 months using the latest ingredients and research.

Formulated product. Designed packaging. Established distribution networks. Recruited core team. Recruiting brand ambassadors. Commenced social media and online sales. Many exciting developments planned for 2021.

We commenced operations and product development in January 2019 and have dedicated considerable time and funding toward product research and development. We conducted extensive research of CBD products, various types of CBD used in skincare, existing legacy skincare brands and products, skincare delivery systems, and the most effective traditional skincare ingredients.

We hosted a soft-launch of American Vanity in March 2020 with a star-studded Hollywood event featured on People, DailyMail, Extra, US Weekly, and InTouch.

With the development of BioAdvance CBD® we knew we had something special that would deliver incredible results to our customers and convert them into believers. Our five-year goal is to establish American Vanity as THE dominant CBD brand in the massive global skincare industry. We believe the world’s beauty conglomerates will enter the market through acquisition over the next 3-5 years and all our efforts are going into making American Vanity the most prized asset in the space.

Here are a few milestones we have completed so far:

We are currently working on completing the following milestones. Dates noted are targeted completion dates.

• Building a team of dedicated and enthusiastic skincare experts who will act as credible brand ambassadors and educators and will attract other ambassadors and affiliates. Initial nucleus to be completed February 28, 2021. Expansion of team will be ongoing.
• Building a team of direct salespeople to grow brand awareness and revenue. We will intensify this effort when we raise additional funds and when retail reopens. Initial team to be in place by February 28, 2021. Expansion of team will be ongoing.
• Intensify social media campaign through expanded video and educational content. Once we secure additional funding we will hire an additional digital marketing manager to spearhead campaign. Expected hire and campaign launch – March 31, 2021.
• Launch a campaign to place product on retail shelves at high-end retailers in the US and Europe. Once we receive additional funding will hire an experienced skincare salesperson (already identified) who will lead retail distribution efforts. Expected hire and campaign launch - April 30, 2021.
• Add new lower-priced line of CBD skincare products. Our initial product lineup is intended as aspirational, targeting the premium market segment and the well-to-do consumer to elevate and position the brand. We are now ready to add a more affordable lineup, targeting millennial customers. This lineup will still feature our ultra-high absorption CBD and will also focus on products that are natural, packaging that is sustainable and design that will target a younger demographic - all at a much lower price point. Expected launch June 30, 2021.

In the next five years our plan is to aggressively grow our brand by:

• Expanding distribution into med-spas, skin care boutiques, dermatologists and plastic surgeons across the US, Canada, and Europe.
• Launching and building an affiliate network comprised of thousands of passionate, driven skincare sales professionals.
• Growing our online presence to online skincare specialty and CBD retailers, adding subscriptions, holiday releases, and celebrity collaborations to Americanvanity.com.
• Once possible, begin in-person education campaign to spread knowledge of CBD and further establish American Vanity as the trusted leader in CBD skincare.
• Expand our product line into more affordable, broad market applications such as acne, a teen line, and scalp products for which CBD is very promising.
• Add a non-CBD version of our products to serve markets and consumers that are not yet willing/able to use CBD products.
• Enter mass retailers, with momentum from the above, we will be in a strong position to negotiate with high-quality mass-market retailers.

Skincare is one of the world’s largest markets, and CBD one of the fastest-growing. Our target users are willing to try and adopt new products that are science-based and effective.

The global skincare market is vast, expected to top $150 billion in 2021. More importantly for American Vanity, existing conglomerates are slow to adapt and as a result, so-called Indie brands (independent/young brands) have captured more than 50% of the prestige beauty market and continue to capture more.

Meanwhile, cannabis and CBD are continuing to explode in popularity and are increasingly adopted by consumers. A recent survey found that 84% of consumers believe cannabis and its extracts have valid medical uses. While the market for CBD is young, it is growing extremely quickly - expected to reach $9.3 billion in 2020 and almost triple to $25 billion by 2025.

We expect our largest customer segment to be comprised of successful women 35-44 years old. These consumers are established professionals, are comfortable with trying new brands, shopping online, and are just beginning to experience signs of aging - meaning they are even more willing than previously to try new and effective products. Our secondary target customers are 45-60 year-old women and younger women aged 25-34. While these groups are motivated by different skincare issues, both are open to new products they believe will be effective in resolving their concerns.

Existing clinical research has shown that CBD has 30x the anti-inflammatory action of aspirin, and our BioAdvance CBD is 30x more absorbent than traditional CBD oil. Inflammation is the major cause of most skin issues, including acne, aging, fine-lines, dullness, and dryness. We expect our products will have a wide appeal to all market segments.

While there are several Indie brands offering CBD-infused skincare products, none have differentiated themselves or have the science-backed product formulations that are truly effective. The big beauty conglomerates are still avoiding the CBD space and waiting to buy the winners. We have stacked the deck in our favor through several competitive advantages.

The skincare market is intensely competitive and dominated by several legacy skincare conglomerates (L'Oreal, Estee Lauder, Shiseido, COTY and others.) These large companies rely on tried and tested formulas and are slow to change and adapt to today’s consumer wants & needs. Existing indie brands are testing new formulas that include ingredients like CBD, but they either lack proper science to back up their claims or lack the branding and marketing strategy that is required when looking to build long-standing relationships. So far, no CBD-skincare brand has been able to differentiate itself or position itself as the major market player.

While many companies are offering CBD infused skincare products, to date, none are offering science-driven, highly effective products focused on penetrating into the skin to deliver the true benefits of CBD. Almost all current products on the market utilize CBD oil in an oil-based format. This is because CBD comes in oil form and is difficult to formulate into water.

The drawbacks of oil-based formulas are many: the CBD in oil-based formulas will sit on the skin and not penetrate where it could do some good. Oil may clog pores and cause the very skincare problems it is supposed to solve, leave the skin feeling oily, and often smelling like cannabis!

We set out to create a truly revolutionary product. Realizing the drawbacks of existing CBD skin care, we spent almost two years developing BioAdvance CBD®, our proprietary delivery system to bring CBD down deep into the skin where its amazing benefits can be felt and seen almost immediately. The BioAdvance CBD delivery system produces an up to 30x absorption compared to traditional CBD oil.

The feedback from our early users has been stellar - our products have smoothed stubborn wrinkles, hydrated dry flaky skin, cleared up acne and rosacea, and more. We believe there are currently no products on the market that can compete with American Vanity on effectiveness, beauty, and luxury.

Entering the market as a CBD-first skincare company makes our job easier as the major players are sitting on the sidelines waiting to buy the "winners." To maximize our chances of success, and the return on your investment, we have sought to stack the deck in our favor by developing several competitive advantages:

• Formulation and Manufacturing - We have developed a strong partnership with our manufacturer - one of the country's leading formulators and manufacturers of premium skincare.
• Deep bench - Our founding team brings deep expertise in skincare, marketing, sales, business development, and finance, making us uniquely positioned for rapid growth.
• Agile R&D - In-house capabilities to develop, test, and launch new and innovative products every 3-6 months using the latest ingredients and research.
• Intellectual Property - Our product line features proprietary formulations and the trademarked BioAdvance CBD delivery system that delivers CBD deep into the skin to provide its incredible benefits.

Our business model currently focuses on the DTC model, and with the easing of Covid restrictions will be expanded to add major retail. We have identified five primary sales channels.

Our marketing starts with the emotional appeal of our name. To us, the word "Vanity" suggests a positive mindset. Vanity equates to self-improvement, self-care, and empowerment. When we pursue beauty (vanity) we get up early to exercise, eat well, take care of ourselves, and present our best self to the world.

Covid did not deter our efforts. We have pivoted from a retail-first approach to a direct-to-consumer model and have used the past ten months to refine our products, packaging, website, social medial channels, and much more. Our team has been working tirelessly to get us ready for the mainstream market, and we are ready to explode out of the gate.

From our elevated packaging, to our experiential events, to our high level of customer care, we are a human-centered brand. Our customers are our biggest fans and advocates, and we are also building out an army of affiliate marketers and brand ambassadors.

For 2021 we are focused on adding more layers to our omnichannel sales strategy that will include a digital ad buy across premium publishing sites as well as various social media platforms aimed at driving brand awareness and direct-to-consumer sales.

Our sales plan includes selling through five major channels:

• Direct to consumer. Using the funds raised from our crowdfunding investors we will drive traffic through editorial placement into popular skincare and beauty blogs and print publications to generate brand awareness; influencer campaign focused around 50-75 select influencers who will become American Vanity evangelists and brand ambassadors; influencer and community based local brand activation events (on hold due to Covid-19); limited paid advertising where available (CBD continues to be restricted by many popular paid online channels); owned social media channels on Instagram, Facebook, YouTube, Twitter, and the American Vanity blog.
• Med-spa and specialty skincare retailers. We have a sales team in place actively expanding our retail footprint with med-spas, dermatologist and plastic surgeon offices, and other specialty retailers that meet our quality criteria. We anticipate this to be a major source of growth starting in mid-2021.
• Affiliate marketers and brand ambassadors. We have built out affiliate and brand ambassador programs, creating a system of incentives for real-world and online influencers to promote and evangelize American Vanity products. In the long-term this will create a loyal and profitable sales channel.
• Third-party e-commerce. Several high-quality online retailers have launched over the past two years, striving to become the “Sephora” of the fast-growing CBD market, including Fleur Marche, Standard Dose, White Label CBD Market and others. In addition to our direct e-commerce site, American Vanity will approach select third-party e-tailers that match our brand value and target customer. Given the current void in the luxury CBD skincare market, we anticipate rapid acceptance.
• American Vanity will seek distribution into one or more luxury national retailers, including Blue Mercury, Douglas GmbH, Nordstrom, Saks Fifth Avenue, and others. Several luxury chains have shown a willingness to add CBD products and are actively looking for new, high-quality brands across the cannabis product spectrum.

We operate our business as a mean and lean start-up, keeping expenses at a bare minimum and focusing our cash burn to drive sales. As we raise funds and continue to increase revenue, we will continue to operate lean and quickly achieve profitability, allowing us to reinvest the bulk of net revenue into marketing and sales, and not into overhead.

One of the most experienced, passionate, and motivated teams in the industry, with the knowledge and connections to dominate the CBD skincare space.

Proudly made in Los Angeles, American Vanity is led by a diverse, highly experienced, and motivated team of executives and entrepreneurs with decades of experience in marketing, sales, operations, skincare formulation and manufacturing, aesthetics, and skincare retail. Our founders have started and scaled businesses, produced some of the world's leading skincare brands, and spent over 40 years in the skincare industry.

Veronica Barton-Schwartz, Spokesperson - with more than 40 years of experience in skincare Veronica regularly appears in top beauty publications and TV shows as a skincare and beauty expert. At her Malibu and Santa Monica spas, Veronica's celebrity clients include Julia Roberts, Cher, Miranda Kerr, and many other Hollywood A-listers, world leaders, and royalty (yes, literally.)

Mary Nguyen, CEO - Mary is a successful entrepreneur and founder of The Bridal Collective, one of the world’s leading bridal fashion houses with multiple well-known brands, sold at more than 2,000 retailers in 60 countries. Mary holds an MBA from Chapman University.

Peter Philipp Wingsoe, Head of Strategy - Philipp brings decades of experience building profitable brands and companies around the world and specializes in helping brands grow via strategic marketing, brand and product development, licensing, sales, and distribution. Previously CEO of Mango Asia, Philipp has served as a board member, advisor, and consultant for numerous start-ups including Trimark Companies, Fico Corporation, Moon Ultra, and IntraCare.

Tina Yeghiazarian, Sales Director - Tina has spent more than 20 years in sales, managing sales teams at various beauty and healthcare practices, most recently heading sales for Bosley Hair Restoration. Tina holds an MBA from Woodbury University.

Greg Zilberbrand, COO - Greg is a finance professional with over 20 years of investment banking, operations, transactions, and B2B sales experience. Greg has extensive experience working with business owners and senior managers on optimizing operations, supply chain, corporate finance, distribution, and sales functions. Greg holds an MBA from USC.

Mark Quest, CMO - Mark has been building and growing brands for over 20 years. He was instrumental in the launch of True Religion Brand Jeans and has since operated several independent agencies which he closed to join American Vanity.

Rembrandt Flores, Head of PR - Rembrandt is the founder and CEO if EFG PR and social media influencer with over 20 years of experience in public relations. Rembrandt has helped launch and worked with such brands as Away Luggage, Shiseido, Tinder, Casper, Juul, and Playboy.

David Ryngler, Head of Production - David is the founder of our manufacturing partner Trademark Cosmetics Inc., a leading cosmetics and skincare manufacturer with experience formulating and manufacturing for some of the world’s largest and best-known brands. In addition to being a seed-round investor, David has 30 years of experience in the skin care field and has been an invaluable resource for American Vanity.

In addition to the above executives, our team includes senior chemists, social media coordinators, influencer coordinators, and content producers. Currently, many of our team members work with us on as-needed basis, to allow us to minimize overhead expenses. As we increase sales, we intend to bring certain team members in-house, and expand the team through additional hires, primarily targeting sales.

Financing is needed to develop sales and open new sales channels.

We are seeking financing for several reasons, all focused on increasing sales. We are anticipating scaling our affiliate relationships over the next few quarters, entering into retail distribution contracts with both big luxury retails and smaller specialty retailers like med-spas, and boosting our online ad spend to drive DTC sales through social media channels. This will require us to hire additional salespeople and a digital marketing manager and purchase additional inventory.

As revenues grow, we will scale our team and systems to effectively manage growth. All these activities will cause a net outflow of funds over the next 12 months before our increased sales and profitability can provide enough cash to self-finance future growth.