IQONIC.AI secures seven-figure seed funding for AI expansion

The Berlin-based AI company IQONIC.AI is profitable after just a few months. The fresh funds will enable the integration of new AI modules, particularly in the hair sector

Berlin, November 10, 2023 - Berlin-based AI company IQONIC.AI has successfully completed a seven-figure seed financing round. The new funds will be used to expand the start-up's AI models in areas such as hair analysis and health and to open up new markets.

The existing investors from the pre-seed financing, including APX, are now joined by Brandenburg Kapital, YZR Capital in the healthcare sector and ARVE Capital. The early-stage investor APX is also participating again in this financing round. It is remarkable that the company became profitable just a few months after the pre-seed financing.

IQONIC.AI offers software solutions for providers of hair, skin and nutritional supplements. With the help of specially developed AI algorithms, skin and hair are scanned in order to suggest individually suitable products. This is intended to reduce trial and error purchases and contribute to a more sustainable industry in the long term. At the same time, the software recognizes potential health problems and recommends that they be clarified by a doctor - an innovative approach to prevention.

Target US market

With the new financing round, IQONIC.AI is increasingly focusing on the US market, having already acquired its first existing customer in the USA. The funds will be used to expand the portfolio with new AI modules and increase market share in various markets.

Founder Martin Pentenrieder explains the expansion into the hair sector: "For example, we offer an analysis of hair type and density." This enables the company to enter another billion-euro market, as sales in the hair care sector in Germany alone will reach around 3.06 billion euros in 2023.

A lot has changed since the last financing round in May 2022. The company, then still known as SQIN, has not only changed its name to IQONIC.AI, but has also adapted its business model. Instead of only using the algorithms in its own applications, IQONIC.AI now offers them as a SaaS solution.

We are delighted to welcome IQONIC.AI, such an innovative company, to our portfolio. In the future, the core of the product, the AI, will be further developed at the Cottbus site in cooperation with the BTU Cottbus-Senftenberg and the Lusatian Center for Artificial Intelligence (LZKI).

Markus Barnickel, Investment Manager at Brandenburg Kapital

IQONIC.AI, as part of SkinTech Corp. GmbH, was founded in February 2021 and focuses on tackling the challenges of the beauty industry with technology solutions. The personalized analysis of skin and hair characteristics enables personalized action and product recommendations.