According to TechCrunch, beauty startup Kiki World is leveraging blockchain technology to democratize the creation of beauty products. The company, which was launched last year, aims to allow consumers to co-create products and co-own the company using web3 technology. Kiki World recently announced that it has raised a $7 million seed round from Andreessen Horowitz's crypto fund, The Estée Lauder Companies’ New Incubation Ventures, OrangeDao, and 2Punks Capital.
Kiki World's co-founder, Jana Bobosikova, believes that the traditional model of brand loyalty can be a negative experience for consumers. She argues that consumers often recommend products to friends and followers on social media platforms like TikTok, but receive little in return beyond targeted ads. Kiki World aims to change this dynamic by allowing its community members to vote on the features they want in beauty products before they are made. In return, voters earn points towards free products and receive digital tokens in the company.
The company's on-demand approach also has the potential to reduce waste, as it could prevent the accumulation of unsold inventory, a common issue in the cosmetics industry. Although the voting process is recorded on the Ethereum blockchain, Bobosikova notes that users do not necessarily need to understand the intricacies of blockchain technology. Users can simply sign in with an email, and Kiki World creates an on-chain account that stores their votes.
Kiki World's innovative approach caught the attention of Andreessen Horowitz, leading to their investment after the startup completed a 10-week crypto startup accelerator program. Ariana Simpson, a general partner at the firm, praised Bobosikova's expertise in the beauty industry and her understanding of web3 technology.
Kiki World has already launched five product collections, including a nail polish pen, and has plans to expand beyond the beauty industry. However, Bobosikova acknowledges that there are significant challenges in manufacturing physical products based on consumer votes, as some products take longer to manufacture than others.