"Please, Stop Falling Out"... Money Pours Into the 11 Billion Won Hair Loss Market as VCs Chase a Jackpot Dream [VC Now]

A Market Poised for a 'Game Changer' with New Treatments
Unrelenting Demand in Prevention, Including Scalp Care
Korea Accounts for 43% of Global Hair Loss Cosmetic Patent Applications

Venture capital (VC) firms are paying increasing attention to technologies for the treatment and prevention of hair loss. This is due to the rising demand for related products, especially among men, and the potential for exponential added value if a proven treatment is commercialized.

VCs Investing in 'Hair Loss Solutions'

According to the venture capital industry on March 27, scalp care brand Refield’s operator, Konstant, recently secured KRW 11 billion in Series B funding. The investment round was led by Korea Investment Partners, with participation from existing investors such as Amorepacific and Hana Ventures, as well as KT Investment.

Konstant has established a unique presence in the industry by redefining hair loss and scalp management as part of a daily routine rather than a medical treatment. Leveraging over 1 million accumulated data points and AI-based scalp scanning devices, the company enables users to select products tailored to their scalp condition. With this investment, Konstant plans to accelerate its global expansion. The funds will be used not only to advance its scalp care technology but also to expand globally with a focus on North America, and to strengthen brand credibility through marketing.

Hair loss solution startup Qstem also raised KRW 2.2 billion in seed funding. The round was led by FuturePlay, with co-investment from Mashup Ventures and Hallym University Technology Holdings. With this investment, Qstem plans to pursue joint development and testing with manufacturers and to expand its product line, starting with functional cosmetics, in stages.

Qstem’s long-term goal is to provide personalized hair regeneration therapy by directly manufacturing hair using stem cells. This approach allows for an almost unlimited supply of transplantable hair, unlike traditional methods that are limited by the number of available grafts. Building on this technology, the company will first launch a scalp essence containing key components extracted from dermal papilla cells, which drive hair growth and regeneration, thereby establishing its revenue model.

Unceasing Demand... A 'Jackpot' Awaits for New Treatments

The hair loss market could see significant ripple effects if an innovative treatment is developed. Currently, the hair loss market consists of preventative products such as medications that help prevent hair loss; there are not yet solutions that can regrow lost hair. Since there is no dominant "game changer" in the solution segment, it is considered an attractive investment opportunity for VCs.

Demand for preventative products, aside from solutions, is also high. Seong Yunmo, Principal at FuturePlay, noted, "Everyone knows that entering the hair loss market can yield significant profits. It is the only segment in the beauty market where men are willing to spend lavishly."

The market size is on the rise. According to U.S. market research firm Grand View Research, the global hair loss treatment market is expected to grow from USD 8.81 billion (approximately KRW 13 trillion) in 2023 to USD 16 billion (about KRW 24 trillion) by 2030.

Characteristics of the Korean Hair Loss Market

In particular, the domestic market is actively engaged in the development of technologies related to hair loss. According to the Korea Intellectual Property Office, from 2002 to 2023, Korea accounted for 42.9% (576 cases) of all global patent applications related to hair loss cosmetics. This far outpaces Japan (20.2%, 272 cases), the U.S. (17.2%, 231 cases), China (8.9%, 119 cases), and Europe (7.7%, 104 cases).

There are further positive factors, such as increased investment across the entire bio sector driven by government policies to foster the biotechnology industry. According to the Korea Venture Capital Association, new investments in the bio and medical sectors, which had decreased from KRW 1.677 trillion in 2021 to KRW 884.4 billion in 2023, rebounded to KRW 1.0695 trillion in 2024 and KRW 1.1889 trillion last year. Principal Seong added, "With the government increasing investments in the bio sector, such as creating a KRW 1 trillion bio mega fund this year, investment in the hair loss market — where male purchasing power is proven — is expected to become even more active."

However, one VC official explained, "Hair loss is a condition caused by a variety of factors, including hormones, immunity, aging, and genetics. It is a highly challenging field to develop solutions for, to the extent that it is difficult to address with a single technology. While the market itself is attractive, it is extremely important to select teams with truly meaningful technological capabilities."

This content was produced with the assistance of AI translation services.