Why We Invested in Hue: Bridging the Authenticity Gap in eCommerce
In coming back to VC and Fika Ventures, I didn’t expect my first investment to be so squarely aligned with my last 4 years of experience as an operator, but in hindsight it makes so much sense. With the time I spent side-by-side with eCommerce brands over the last few years, I innately know the issues they face day in and day out.
With that, I’m so excited to share that my first investment back is one that solves those problems directly. Hue. is a platform tackling one of the biggest challenges in eCommerce today — authenticity.
This week, they announced their $4.5M seed round co-led by us at Fika Ventures and Underscore. Hue is an AI-powered SaaS platform that addresses this critical need with an end-to-end platform for authentic and scalable user-generated video. Their solution is already trusted by 45 brands and retailers including household names like Tatcha and Credo Beauty.
The Struggle to Produce Content
Similar to how Route enabled brands to compete with the unrealistic expectations that Amazon created for consumers when it came to shipping issues and resolution, Hue is enabling brands to compete with unrealistic content expectations that consumers now have due to platforms like TikTok, Instagram, Snap, and more. It feels like there is never enough content for a consumer no matter how much a brand can turn out, and the struggle to produce that relatable content efficiently, with purpose, and within brand guidelines can feel impossible.
Within that, brands also have to attempt to balance between polished marketing materials and the authentic experiences consumers crave. It can be an impossible task for a marketing team. This disconnect isn’t just frustrating for them — it’s also a major factor in low conversion rates and eroding trust in online shopping for shoppers. The onset of AI-generated creative and visuals has only made trust erode further, with no scalable solution to easily create relatable, human content, until Hue.
The eCommerce Authenticity Challenge
On top of the challenge to produce that sheer volume of content, eCommerce brands are constantly striving to bridge the gap between what consumers experience when shopping in person versus online. While no one doubts the efficiency of ordering online, there is still much to be desired when it comes to the completeness of product information you receive. It’s not an easy problem to solve, especially for any considered purchase or products with personalized aspects to them. This problem is particularly acute for anyone who doesn’t see themself represented by the traditional casting of models and product images.
The expectation and need for authenticity and representation are (rightfully so) louder than ever. Not only do consumers crave real experiences — ones that reflect their personal identities and needs–but also, it is proven to increase conversion and loyalty.
Enter Hue: The Solution That Resonates with Brands and Shoppers Alike
That’s where Hue comes in, allowing consumers to filter video reviews based on their own personal attributes (hair type, skin type, shade, and more depending on category). These filters are set hand-in-hand with their customers to make sure they are optimized for the key areas of shopper interest.
Hue is a platform that integrates authentic, user-generated video content (UGC) directly onto eCommerce websites and across digital marketing channels. They’re laser-focused on helping brands use high-quality video reviews, crafted by vetted content creators, to drive engagement and conversions.
While there are other companies working on video in eCommerce, few have executed as seamlessly as Hue at solving a brand’s actual pain points (scalability, ease of implementation, representation, and conversion). Their platform is a true end-to-end solution that offers the video infrastructure itself, the video content in whatever volume needed, and the data-driven optimization for conversion — all while highlighting representation and inclusion that brands so desperately need.
Why Customers Love Hue
One of the biggest early indicators of success in any B2B business is customer love, and in this case, Hue has it in spades.
The feedback from Hue’s customers has been overwhelmingly positive because they are solving a clear and critical short-term pain while also preparing them for a long-term future.
Some of the things they love most:
- Market Timing and Need: One marketing director at a major retailer emphasized how video has grown in importance over the last five years, with inclusive and scalable relatable video now being a top priority for new product launches. Hue came at the perfect time. Since 2022, Hue has partnered with over 45 brands and retailers across beauty, apparel, and now expanding into footwear and accessories.
- Cross-Functional Value Proposition: Unlike many players in the UGC space, Hue’s solution addresses pain points for marketing, eCommerce, product, and customer experience departments alike. No other platform can solve the needs of each of these departments at once.
- Impressive Conversion Results: Hue’s partners have reported a 5–25% increase in conversion rate and a 60–100% increase in time spent on site, resulting in significant increases in conversion rates and time spent on site, translating to 5–10x ROI for brands. This ROI has made it natural for almost all of their customers to expand from a few product SKUs to many.
- Unique Data and AI-Powered Personalization: With millions of user interactions, Hue’s AI continuously improves its content recommendations personalized to the customer as well as optimized for the brand, surfacing the right products to the right people for conversion and engagement. Hue is able to do this with their unique datasets and user profiles well beyond just basic demographics.
- The Hue Team’s Partnership and Expertise: Hue’s team comes from the industry they serve and therefore their hands-on support is optimized for long-term success for each of their clients. Rather than just building technology, they have built customer success and operations that help each brand thrive beyond just the content or product. They are a true partner to their customers, which in eCommerce enablement, is often far too underlooked.
Coming from Experience
In addition to the standout product, the Hue team stands out on their own as well. Three women of color–Janvi Shah, Nicole Clay, and Sylvan Guo — met at Harvard Business School, drawn together by a shared passion for bringing authenticity and representation to eCommerce. Prior to HBS, Janvi was a PM on the Google Photos team, Nicole was at L’Oreal, and Sylvan was one of the first 100 employees at Airbnb. While each of them came with a unique set of professional skills and experience, they had a shared experience in what they felt was lacking in the eCommerce industry, initially representation for diverse skin tones.
There are over 68,000 unique makeup shades on the market today, which has made finding the right shade match for one’s skin tone the number one pain point consumers have when shopping for makeup online. What initially started as a shade matching business, has evolved into Hue today.
Together, their lived experiences combined with their professional journeys make them uniquely qualified to tackle this problem head-on.
The Future of Authentic eCommerce
The eCommerce industry is at a pivotal moment. In an increasingly AI-native environment, the need for genuine, relatable content is more crucial than ever. Simultaneously, consumers are demanding increased authenticity, and brands that fail to deliver risk being left behind.
As Hue closes their $4.5M seed round, they’re well-positioned to drive the future of scalable authenticity in eCommerce. Hue isn’t just adapting to this new landscape — they’re helping to shape it.
As we look to the future, it’s clear that video will play an increasingly central role in eCommerce. But it’s not just about having video — it’s about having the right video, personalized and authentic, that truly resonates with each shopper. Hue is at the forefront of this transformation, and I’m excited to be their partner in this journey as they work to redefine the online shopping experience.
