Why Ami Colé Shuts Down Despite Strong Support from Investors and Fans
Popular beauty brand Ami Colé is officially shutting down this September, even after raising over $3 million in venture capital and gaining recognition across the industry. Founded by Diarrha N’Diaye-Mbaye, one of the few Black women to secure significant VC backing, the company made waves by creating makeup specifically designed for melanin-rich skin tones. Despite glowing reviews, retail partnerships like Sephora, and celebrity endorsements from Kelly Rowland and Mindy Kaling, Ami Colé couldn’t overcome the harsh realities of today’s consumer market. So why is Ami Colé shutting down even with loyal customers, award wins, and media buzz? Let’s explore the deeper reasons behind the brand’s closure and what it reveals about challenges in the beauty startup world.
Image Credits:Astrid Stawiarz / Stringer / Getty Images
The Rise of Ami Colé: Filling a Void in Inclusive Beauty
When Ami Colé launched in 2021, it quickly filled a gap in the beauty market: high-quality, clean beauty products for people of color. For years, consumers with darker skin tones struggled to find makeup that matched their complexion without looking ashy or unnatural. The brand stood out by prioritizing ingredients that were both effective and safe, catering to melanin-rich skin with foundations, lip oils, and skin tints that felt breathable and looked flawless.
Ami Colé wasn’t just another beauty brand—it was part of a movement that demanded more inclusivity and equity in the beauty industry. Backed by investors like Greycroft and G9 Ventures, and supported by prominent names such as Hannah Bronfman, the brand rode a wave of post-2020 DEI (diversity, equity, and inclusion) investment. Retail giants like Sephora embraced the company, and its popularity surged through authentic word-of-mouth and influencer endorsements.
But as we now know, even genuine consumer love and niche innovation don’t guarantee survival in a market dominated by legacy brands and fluctuating investor support.
Why Ami Colé Shuts Down: Market Pressures and Misaligned Expectations
The decision to close Ami Colé wasn’t sudden—it came after several attempts to navigate financial pressures and investor demands. Founder Diarrha N’Diaye-Mbaye explained in a personal essay for The Cut that continuing operations simply wasn’t sustainable in the current market environment. Despite early support, the brand faced what many Black-led startups do: a disconnect between investor expectations and the realities of operating an inclusive, mission-driven business.
Ami Colé’s situation reflects a broader trend affecting VC-backed consumer brands. Growth was rapid but volatile—one week brought soaring sales; the next saw product sitting unsold. These inconsistencies made it difficult to scale sustainably, especially when compared to larger, well-established competitors with bigger marketing budgets and deeper pockets. As N’Diaye-Mbaye put it, too much time went into “appraising investors” instead of serving loyal customers, a sentiment that highlights the conflict between purpose-driven entrepreneurship and profit-first venture capital.
Moreover, the excitement around supporting Black-owned businesses in 2020 appears to have lost steam. Investor appetite for diversity-focused startups has cooled, leaving many founders feeling abandoned despite continued consumer demand. This shift in investor sentiment may have been one of the final straws that led to the decision to wind down Ami Colé’s operations.
The Legacy of Ami Colé and What It Means for the Future of Beauty Startups
Although Ami Colé is closing, its impact on the beauty industry remains profound. The brand helped change conversations around inclusivity, proving that products for underserved communities can be both high-quality and commercially viable. It also challenged traditional beauty standards and encouraged other companies to diversify their product lines in meaningful ways.
For future beauty founders—especially those from underrepresented backgrounds—the Ami Colé story serves as both inspiration and cautionary tale. Building a purpose-driven brand in an industry ruled by giants and venture capital is no small feat. The reality is that investor enthusiasm can shift, and maintaining alignment between growth goals and brand mission is incredibly difficult.
Still, the demand for inclusive beauty hasn’t disappeared. If anything, it continues to grow. Consumers want more than just representation—they want authenticity, transparency, and quality. What happens next will depend on how investors, retailers, and consumers respond to stories like Ami Colé’s. Will the industry continue to back inclusive innovation, or will brands like Ami Colé remain rare exceptions that struggle to survive long-term?
Either way, the legacy of Ami Colé is far from over. Diarrha N’Diaye-Mbaye has proven herself as a visionary founder, and her journey will undoubtedly influence future startups navigating the complex terrain of beauty, equity, and entrepreneurship.
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