A Skincare Startup Quantifing Its Most Valuable Asset - Brand

Great products get you shelf space. Great brands get you pricing power. But what happens when investors ask what that brand is actually worth?

The Context

A Singapore-based skincare company had grown rapidly over 24 months. It offered clean, refillable formulations with minimalist design, strong customer loyalty, and standout engagement across TikTok and Instagram. Their D2C revenue reached $2.8 million annually with 60% gross margins and a 75% repeat purchase rate.

They had just signed an LOI for a regional retail partnership and were raising a $5M Series A round. But during due diligence, investors repeatedly asked the same question: How much of this valuation is supported by brand equity—and how do you know?

The Problem

Brand was driving retention, pricing power, and earned media. But it wasn’t visible in the financials.

Several gaps stood out:

• No formal IP audit, valuation, or defensibility scoring

• No clear method to isolate the brand’s contribution to margin or customer lifetime value

• No structured data room content to support licensing, white-labeling, or strategic asset discussions

The challenge wasn’t that the brand lacked value. The challenge was that no one could quantify it.

What Solved It

A three-part brand valuation methodology made the brand’s value tangible and investor-ready.

1. Scoring the Brand Across Three Pillars

The brand was evaluated across performance, premium, and protection—each measured with quantitative proxies:

Pillar	What Was Measured	Sample Indicators
Performance	Role in driving revenue and loyalty	Repurchase rate, CAC/LTV vs. white-label benchmarks, organic D2C velocity
Premium	Evidence of price elasticity and brand lift	MSRP vs. category, UGC sentiment, influencer-led conversion differentials
Protection	Legal and market defensibility	Trademark filings (SG, ASEAN, US), IP audit of formulation/packaging, domain asset quality

Each score was benchmarked against category peers and used to weight the brand’s influence on core financial outcomes.

2. Modeling Brand-Driven Enterprise Value

Several analytical steps quantified how brand equity contributed to both revenue and defensibility:

• Price Elasticity Tests: Modeled revenue impact of 5–15% price lifts on hero SKUs

• Retention Clustering: Analyzed LTV differences between users acquired via brand channels vs. paid

• Attribution Mapping: Connected GMV to owned content vs. performance-driven acquisition

Key takeaways:

• Brand-driven pricing premium averaged 30% across top SKUs

• LTV uplift from brand-origin customers added 6–9 months of value

• Brand accounted for ~22% of enterprise value in a revenue-multiple model

3. Structuring for Capital Events

The brand was translated into a capital asset with practical implications:

• A brand valuation report was created for the Series A dataroom, including benchmarks, assumptions, and scenario sensitivity

• Licensing opportunities were structured, supported by a brand/IP memo and geographic spinout analysis

• Cap table scenario planning included non-dilutive monetization options (e.g. co-branded SKUs, licensing income)

The Outcome

The company closed its $5M Series A at a the high end of beauty benchmarks in the region, surpassing 50% of its peers.

In discussions:

• Investors recognized brand value as an operating moat, not just marketing spend

• Retail partners proposed co-branded lines with profit-sharing

• The internal team aligned on treating brand assets as capital drivers, not intangibles

Quantifying brand equity unlocked stronger positioning, strategic leverage, and fundraising confidence.

Why It Matters

In consumer startups, brand is often the primary source of retention, margin, and long-term differentiation. But few teams can explain—let alone prove—what their brand is worth.

Valuing brand equity isn’t about vanity. It’s about control:

• Control in negotiations

• Control over licensing and spinouts

• Control of the narrative when raising capital or entering new markets

If your brand is driving value, make sure it’s priced like it.