IQONIC.AI, headquartered in Berlin and formerly known as SQIN, an AI-focused company, revealed that it has successfully raised a seven-figure seed funding round with support from Brandenburg Kapital, YZR Capital, and Arve Capital.
The funding round also witnessed the active participation of existing investors like Accel, APX (the early-stage investor supported by Axel Springer and Porsche), Thomas Hayo, Michael Schummert, and Jens Apermann.
The German company plans to utilize the proceeds to expand its AI models in various domains, including hair analysis and health, while also venturing into new markets. Additionally, the company intends to accelerate its sales efforts in the United States, aiming to solidify its presence there following the acquisition of its first existing customer. Remarkably, the startup achieved profitability just a few months after its pre-seed financing.
Martin Pentenrieder, the founder of IQONIC.AI, elaborates, “For instance, we provide hair type and density analysis, marking our entry into another billion-euro market. In 2023, hair care sector sales in Germany alone are projected to reach approximately €3.06 billion. However, this is just the initial step, as we have plans to explore other related business sectors, with a significant focus on health.”
This announcement comes on the heels of IQONIC.AI’s recent collaboration with Fit & Alive Cosmetics, a Turkish cosmetics brand.
IQONIC.AI: Innovative Solutions for Beauty, Hair, and Health
IQONIC.AI, co-founded by Martin Pentenrieder and Maria-Liisa Bruckert, specializes in providing advanced software solutions to brands and retailers operating in the realms of haircare, skincare, and nutritional supplements.
The company’s software harnesses the power of AI algorithms to analyze users’ skin and hair, subsequently recommending tailor-made products specifically suited to individual needs. This innovative approach not only reduces the need for trial-and-error purchases but also fosters long-term sustainability within the industry.
Furthermore, IQONIC.AI’s software possesses the capability to identify potential health concerns and advise users to consult a healthcare professional, representing a groundbreaking facet of preventive healthcare.
Earlier this year, the company underwent a rebranding transformation, transitioning from SQIN to IQONIC.AI. Maria-Liisa Bruckert explains, “The name change marked a significant milestone for us. The name SQIN was overly focused on skin-related topics, which no longer exclusively define our scope. Additionally, our business model has undergone substantial changes. We no longer restrict the use of our algorithms to our applications but now offer them as a Software as a Service (SaaS) solution.”
Notably, the company achieved profitability within approximately six months after its pre-seed financing, drawing customers from diverse markets.
About the Investor
Since 1993, Brandenburg Kapital, the venture capital arm of ILB, has been steadfastly backing local enterprises through equity investments. This public venture capital firm extends a robust equity foundation to startups and small to medium-sized enterprises (SMEs) in the Brandenburg region. They do so through expert lead investment and active collaboration, fostering a stable and supportive corporate environment.
With a fund totaling approximately €100 million presently at its disposal, Brandenburg Kapital stands ready to bolster startups in their early-stage and growth phases. The establishment of the Brandenburg Kapital fund is attributed to the Brandenburg Ministry of Economic Affairs and is currently fueled by resources from the European Regional Development Fund, as well as ILB’s own funds.
Notably, ILB’s investment initiatives have already provided support to 264 companies on their growth journeys, amounting to a substantial €305 million. Moreover, private investors have contributed an impressive €690 million to these enterprises.