Title: Scaling in the beauty industry: the high-stakes quest for investor capital

Authors: Oliver Thomas; Manuel Hess

Addresses: Department of International Business, Zurich University of Applied Sciences, St.-Georgen-Platz 2, 8400 Winterthur, Switzerland ' Grenoble Ecole de Management, 12 Rue Pierre Semard, 38000 Grenoble, France

Abstract: Hair & Skin, a rapidly growing Swiss startup specialising in minimally invasive hair and skin treatments, finds itself at a strategic crossroads. In just three years, under the leadership of CEO Philip Lehmann and a founding team of seasoned entrepreneurs, the company became a market leader. However, after saturating the domestic market with 21 clinics and facing escalating operational costs alongside a negative EBITDA, the company must now decide whether to seek external investment for international expansion and operational professionalisation. This case study explores the tension between rapid revenue growth and sustainable profitability, highlighting key dilemmas such as managing cash burn, adapting the business model for diverse regional markets, and convincing investors to back an ambitious internationalisation strategy. In doing so, the case provides a rich basis for analysing strategic financing, operational management, and investor relations in high-growth industries.

Keywords: startup growth; venture capital; scaling strategy; fundraising challenges; international expansion; cash burn management; revenue growth; sustainable profitability; investor relations.

DOI: 10.1504/IJTCS.2025.149408

International Journal of Teaching and Case Studies, 2025 Vol.15 No.4, pp.331 - 351

Received: 06 Mar 2025
Accepted: 29 Mar 2025
Published online: 29 Oct 2025 *

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