AI-focused firm IQONIC.AI from Berlin announced the successful completion of a seven-figure seed investment round supported by Brandenburg Kapital, YZR Capital, and Arve Capital.
The revenues will be used to expand the German company’s AI models in multiple disciplines, including hair analysis and health, and to enter new markets. Furthermore, following the acquisition of its first existing customer, the company wants to accelerate its sales efforts in the United States to secure its presence there. Surprisingly, the firm became profitable just a few months after receiving pre-seed funding. This news follows IQONIC.AI’s recent collaboration with Fit & Alive Cosmetics, a Turkish cosmetics business.
“For example, we provide hair type and density analysis, marking our entry into another billion-euro market,” says Martin Pentenrieder, creator of IQONIC.AI. He further, “Haircare sector sales in Germany alone are expected to reach €3.06 billion in 2023. However, this is only the first step; we intend to investigate additional relevant economic sectors, with a strong emphasis on health.”
Existing investors such as Accel, APX (the early-stage investor funded by Axel Springer and Porsche), Thomas Hayo, Michael Schummert, and Jens Apermann participated actively in the investment round.
Pentenrieder and Maria-Liisa Bruckert co-founded IQONIC.AI, which specializes in providing innovative software solutions to companies and retailers in the haircare, skincare, and nutritional supplement industries. The company’s software uses AI algorithms to assess consumers’ skin and hair, recommending tailor-made items tailored to their needs. This unique strategy lowers the need for trial-and-error purchases and promotes long-term industry sustainability. Furthermore, IQONIC.AI’s software may detect potential health issues and suggest users visit a healthcare professional, indicating a game-changing aspect of preventive healthcare.
The company rebranded earlier this year, changing its name from SQIN to IQONIC.AI. “The name change marked a significant milestone for us,” Maria-Liisa Bruckert explains. “SQIN’s name was overly focused on skin-related subjects, which no longer define our reach. Furthermore, our company model has experienced significant adjustments. Our algorithms are no longer limited to our products but are now available as a Software as a Service (SaaS) option.”
Notably, the company attained profitability around six months after receiving pre-seed funding, attracting consumers from various areas.
Brandenburg Kapital, ILB’s venture capital arm, has consistently supported local businesses with equity investments since 1993. This public venture capital institution provides a solid equity basis to Brandenburg startups and small to medium-sized companies (SMEs). They establish a secure and supportive company environment through expert-led investment and active engagement.
Brandenburg Kapital has a fund of around €100 million and is ready to assist entrepreneurs in their early-stage and growth phases. The Brandenburg Ministry of Economic Affairs established the Brandenburg Kapital Fund, which is currently supported by monies from the European Regional Development Fund and ILB’s finances.
Remember that ILB’s investment programs have already assisted 264 companies on their growth journeys, totaling €305 million. Furthermore, private investors have provided €690 million to these businesses.
