You are the one who has to de-risk this for your client.
This page is written for the manager, business manager, agent or attorney who will actually evaluate the opportunity. It answers the questions you have to answer internally before you would ever put this in front of talent: who funds it, who owns it, what the artist is actually committing to, and what happens if they walk away.
Why an adviser brings this to a client at all
Most beauty opportunities that reach your desk are licensing or endorsement deals: a fee, a term, a usage grant, and nothing at the end of it. They are simple to paper and they expire. What we build is a company the artist holds equity in, so the upside is an asset on their balance sheet rather than income in a single tax year.
That difference is the whole reason to read further. It also means the diligence you owe your client is heavier than an endorsement, which is why everything below is stated plainly rather than sold.
What we are not. We are not a private-label vendor, an influencer merch service, or a broker taking a cut of an endorsement. We build operating companies, one artist at a time, and we do not pursue talent whose audience or interests do not genuinely fit the category.
Who funds what
This is usually the first real question, and the honest answer is that the artist is not the source of capital.
| Function | Who carries it | Artist capital required |
|---|---|---|
| Formulation & product development | Korean ODM partner, inside product cost | None |
| Manufacturing, QC, stability testing | Korean ODM partner, inside product cost | None |
| Regulatory dossiers & market registration | ODM plus the Atypical Beauty platform | None |
| Brand identity, packaging, naming | StarPower and engaged specialists | None |
| E-commerce, logistics, payments | Existing Atypical Beauty operating platform | None |
| First production run & launch inventory | Financed at the venture level, structured per deal | None required |
| Audience, creative direction, cultural authority | The artist | Time and involvement, not cash |
An artist may elect to invest capital for a larger initial position, priced separately. It is never a condition of the deal. Inventory financing terms vary by launch size, market and manufacturer and are set in the definitive agreements.
Ownership structures we will actually discuss
We do not publish one rigid cap table, because the right structure depends on what the artist brings, what they want to be responsible for, and what their counsel will accept. These are the live options, described so your side can form a view before any call.
Founder equity from day one, with retention conditions
The artist is issued a substantial founder position at signing rather than earning it from zero. The position is subject to agreed retention conditions tied to the activations they have already said they will do. Nothing is clawed back for ordinary commercial disappointment, only for non-participation.
Guaranteed minimum plus equity
A contractual minimum payable to the artist regardless of sell-through, recoupable against future distributions, sitting alongside the equity position. This addresses the artist expectation of value at signature without asking them to rely solely on future performance.
Royalty-first, converting to equity
The artist takes a royalty on net revenue from the first unit, with a defined right to convert into equity at agreed points. Lower risk for the artist, and it lets both sides see real trading data before the permanent cap table is set.
Paid capsule pilot
A single limited drop on commercial terms, with no long-form commitment. It produces real sell-through evidence, a finished product in the artist's hands, and a defensible basis for pricing the full venture afterwards.
Percentages, gates, vesting mechanics and governance terms are negotiated per venture and are documented in definitive agreements prepared by counsel. Nothing on this page is an offer, and nothing here is legal, tax or investment advice. Your client should have independent counsel review any structure before signing.
The questions you will be asked internally
Who owns the trademark, the formula and the customer data?
The venture entity owns the brand trademark, the formulation rights negotiated with the manufacturer, and the first-party customer data. The artist's name, likeness and personal marks remain the artist's property and are licensed to the venture on defined terms, with the licence drafted so it survives an orderly exit and does not travel with the company by default.
How much of the artist's time does this actually take?
Materially less than a touring or film commitment, and it is scheduled around their calendar. In practice: product selection and approval sessions, one factory visit if they want it, creative direction on identity and packaging, and appearing in the content their own channels already produce. We do not build a plan that assumes an artist becomes an operator.
How is my client's reputation protected?
Identity consent rights over name, likeness and campaign usage sit with the artist, so nothing goes out with their face on it without approval. Product quality and regulatory compliance are carried by tier-one Korean manufacturing rather than a low-cost filler. Launches are quiet by design until the product is real, which protects the artist from announcing something that has not been made yet.
What happens if the artist changes their mind?
There is a defined exit at every stage, and the earlier stages are deliberately reversible. A capsule pilot ends when the drop ends. In a full venture, disengagement stops the unvested portion of the position from continuing to release while leaving already-vested economics intact. Ordinary change of heart is not treated as a breach.
What does StarPower earn?
We hold equity in the venture alongside the artist and we take our return the same way they do, from distributions and from the value of the company. We are not on a fee against their income and we do not take a commission on their endorsement work.
What information do you need before an NDA, and what opens up after?
Before an NDA we need almost nothing: your name, your firm, your role, and the category or a confidential descriptor of the client. You never have to name your artist to start a conversation. After an NDA we will name the manufacturing partners, share the operating and economic model, and prepare a written brief specific to your client.
How do you decide an artist is a fit?
Audience trust and beauty relevance matter more than follower count. We look for a credible personal reason the artist would build in this category, a market where they are difficult to substitute, and the absence of a conflicting personal-care commitment. We would rather decline than launch a brand that reads as a licensing exercise.
What we bring, stated without inflation
Korean manufacturing access
Direct, relationship-level access to tier-one Korean cosmetics ODMs. Named partners and the nature of each relationship are disclosed under NDA rather than advertised here.
A live LatAm operating platform
Atypical Beauty is an existing operating business with market-entry, e-commerce, logistics and regulatory workflows already running. The venture plugs into it rather than rebuilding it.
Deal and capital structuring
Structuring led by a cross-border M&A and private-equity background, including prior beauty-sector transaction work. The economics are designed to survive your counsel reading them.
Capabilities that cannot be publicly evidenced are described here as available under NDA rather than asserted as fact. Where a relationship is confidential, we would rather say so than imply more than we can show.
A written brief, before any meeting
For a qualified artist we prepare a confidential preliminary brief: category fit, whitespace, two or three hero-product directions, launch-market options, ownership questions to resolve, and the honest risks. You can read it before deciding whether a call is worth your client's time.
Request a Confidential Brief