By Dan Miner – Reporter, BuffaloInno

ShearShare moved from Dallas to Buffalo after winning a $500,000 investment in October’s 43North competition.

The startup, led by co-founders Tye and Courtney Caldwell, is a gig-economy take on the beauty industry – using software to match independent contractors with empty chairs at salons and barber shops.

The company already has hired a handful of employees in Buffalo who will work from the new home base at the 43North incubator in Seneca One Tower. And it made news recently when it closed a $2.3 million bridge round of funding that will support sales, marketing and engineering efforts this year.

The round was led by Atlanta-based Fearless Fund and included contributions from local angel investors Jack Greco and Wayne and Mary Bacon; Empire State Development Corp.’s New York Ventures Fund; Portfolia’s FemTech II Fund; and Hearst Corp.’s Level Up Ventures.

Another notable investor is venture capital firm Chloe Capital, based in Ithaca. Chloe Capital has been active in hosting events throughout central and western New York. ShearShare is the first investment in that footprint.

Chloe Capital co-founder and partner Kathryn Cartini spoke with Business First about that investment.

How did the ShearShare investment come together?
We first set our sights on ShearShare at 43North (in October). I was one of the pre-qualifying judges, and I got to meet some new investors and reconnect with some old friends.

We watched ShearShare win $500,000. It was clear they were onto something and that other investors were interested.

I said, ‘Hey, everyone, they have a small bridge round open. I will collect all the materials, do the due diligence and put this together. Let me know what you need, but we’d love for you to entertain investing in this company, too.’ That’s what we did through the holidays.

Why do you like ShearShare as an investment?
We liked them initially because of their specific industry and their take on the gig economy. In this post-Covid era, you have a lot of businesses that have struggled and a lot of people who are trying to make a living (as independent contractors). It’s not only about making a living anymore, it’s about believing in what you’re doing and pursuing your passion.

The gig or sharing economy is something like a $1.5 trillion market in the next couple of years, and the beauty and barber market is a huge chunk of that addressable market. When I look at the opportunity they have, that’s what got us excited at Chloe Capital.

We went in and looked at the technology, because with a company at this early stage, sometimes they haven’t built (meaningful technology yet). But ShearShare has an entire app and platform. They have patents. They are validated. They are in the market and generating revenue in multiple states.

Finally, they have a way to supply insurance in the beauty and barbering industry.

What is your take on the founders?
First of all, they are a pleasure. They are knowledgeable and kind and hardworking. They are beautiful people, inside and out. I have enjoyed every single interaction with them, getting to experience their hustle and their heart. We were just in Austin for the South by Southwest conference. They’re from that area and we got to be in the audience as Courtney gave a presentation, and then to hang out with them and continue building that relationship.

You’re already an investor. Why is it important to continue nurturing that relationship?
It’s important to us that the relationship between the investors and the founders actually means something. We consider everything a partnership because our success depends on their success. We want to be with the company as they continue their journeys, and if they raise more money, we want to be able to invest in them.

The round included quite the roster of investors, both from a local and national perspective.
Hearst’s Level Up fund is a new fund dedicated to Black and Latina founders, and they became one of the very first investors. Our friends at Portfolia – which helped invent funding for underrepresented founders – came in as well. Everyone in town knows Jack Greco, who is an investor in Chloe Capital, and when we said, ‘We love ShearShare,’ he said, ‘I like them and I’m in on that, too.’ So now he’s invested twice. Wayne and Mary Bacon have been great. They were on the call with the other investors and they were able not only to come in on the cap table but to teach them more about this process and pay it forward.

Finally, ESD’s NY Ventures Fund pushed it across the finish line. That’s a big one. I’ve never seen them come into a round this early.

Talk to me about Chloe Capital’s mission.
As women in the sales, fundraising and technology industries, we have to figure out how to get involved in relationships with founders who are unique to us, or (with whom we have) commonalities. In the case of ShearShare, we found those commonalities. When Courtney was speaking on the stage at South by Southwest, we were in the audience as cheerleaders for her. And then we all met up afterward for hugs and strategy.

Chloe Capital is a venture capital firm that invests in women-led tech companies around the world, and we also partner with universities and corporate innovators to help catalyze capital for underrepresented founders. Our Invest in Women tour has been a huge success. To date, Chloe Capital has invested in 19 early-stage, women-led technology companies.