Background: Skims is the shapewear and apparel brand co-founded by Kim Kardashian. It’s best known for its bodysuits, mid-waisted shorts, and shapewear. Skims has grown rapidly with net sales projected to jump to over $1 billion USD in net sales in 2025.

What happened: Now, Skims has just raised $225 million USD in a new funding round led by Goldman Sachs Alternatives, valuing the company at $5 billion.

What else: Skims plans to use the new funding to expand into apparel and activewear, while also doubling down on retail and international growth. It’s another reminder of the power of celebrities not just endorsing brands, but owning them.

What's the key learning?

💡Star power gives a brand a launchpad most startups could never buy. Celebrity-backed brands inherently have marketing power built into their business model, which allows them to reach huge audiences almost immediately.

💡This rapid visibility makes them attractive to investors who are looking for brands that can quickly penetrate the market.

💡There are a number of celebrity-backed brands that have attracting major investment and even acquisitions:

• Hailey Bieber’s Rhode, which was sold to E.l.f Beauty for around $800 million USD
• George Clooney’s Casamigos, acquired by Diageo for $1 billion USD
• Rihanna’s Fenty Beauty, which has secured substantial investment dollars and reached younger shoppers instantly