Three Roots Capital Invests in Blank Beauty to Support Scalable Growth and Economic Impact in East Tennessee

May 08, 2025

Innovative beauty-tech company raises $6 million Series A to expand operations in Knoxville.

KNOXVILLE, Tenn. – May 8, 2025 — Three Roots Capital (3Roots), an innovative finance company focused on providing impact capital and business coaching for job-creating small businesses, has invested in Blank Beauty, a rapidly growing beauty-tech company that is blending science, software, and robotics to revolutionize personalized cosmetics.

Blank Beauty recently closed a $6 million Series A funding round and is establishing its headquarters and production facility in downtown Knoxville. Although the company did not originate in Knoxville, its leadership has chosen to expand and grow in East Tennessee, drawn by the region’s entrepreneurial spirit, available talent, and supportive innovation ecosystem.

Blank Beauty’s technology platform enables customers to receive precision-matched formulations for beauty products like nail polish. The company plans to expand into additional categories. Its blend of hardware and software solutions is designed to transform how consumers experience and purchase cosmetics.

“Three Roots Capital is enthusiastic about supporting Blank Beauty’s growth and expansion. We have been impressed by Charles and his leadership team, by the technology and product pipeline, by the supporting cast, and by the company’s ability to attract capital from significant strategic investors. We see several ways 3Roots can support the company, including various kinds of direct capital investment, intending to deliver strong financial results and drive economic impact in Knoxville,” said Grady Vanderhoofven, Founder and CEO of Three Roots Capital. “We encouraged the company to explore space in a low-income area in East Tennessee, aligning with our goal to foster economic development. Blank Beauty is the type of high-growth-potential, tech-driven company we want to see thrive in the region.”

Blank Beauty’s Series A round included investment from three other strategic partners: EPSON, a leader in advanced digital printing and imaging technology, and Kirker Enterprises, Inc. (Kirker), a global leader in custom manufacturing and industrial solutions, and Evolution Venture Capital Partners (Evolution VCP), a nationally active investment fund. Each investor brings valuable expertise and resources to support Blank Beauty’s continued growth, including potential applications for their technologies and networks within the cosmetics industry.

The company’s new headquarters is located in a federally designated low-income census tract, which means the company is positioned to generate meaningful economic impact and create jobs as it expands production. Blank Beauty is working with regional partners, including Alcoa-based APTUS DesignWorks, which supports the company’s product development and manufacturing efforts.

“Having local investors in the Knoxville area brings much more than capital to the table. Three Roots Capital’s investment helps Blank Beauty plug into the ecosystem and gain access to an incredible network of local resources and opportunities,” said Charles Brandon, Co-Founder and CEO of Blank Beauty. “We are also thrilled that Three Roots can watch our business grow in their backyard– an investor update can be an impromptu, in-person workshop instead of another Zoom Call.”

Three Roots Capital’s investment is part of a broader strategy to provide flexible capital tailored to early-stage companies with strong leadership, scalable business models, and a commitment to growing in Tennessee and central Appalachia. Blank Beauty stood out for its traction with strategic investors, technical and consumer expertise, and its choice to anchor operations in Knoxville.

Since its founding in 2016, Three Roots Capital has deployed more than $190 million in direct financing and $95 million of New Markets Tax Credits to dozens of entrepreneurs, businesses, and real estate projects across the region. Three Roots is committed to supporting and collaborating with the communities it serves.

About Three Roots Capital

Three Roots Capital is an innovative finance company that provides loans and equity investments to small businesses and real estate projects in Tennessee and Appalachia. 3Roots was established to address the chronic need for investment capital in central and southern Appalachia. 3Roots supports small businesses, entrepreneurs, real estate projects, and communities in economically challenged areas throughout the region. 3Roots is certified by the U.S. Department of the Treasury as a Community Development Financial Institution (CDFI) and Community Development Entity (CDE). For more information, visit www.3rootscapital.org.

About Blank Beauty

Blank Beauty Inc. is a beauty tech startup that is centered around automated production of custom cosmetic products. Blank’s online platform empowers customers to create custom shades of nail polish in minutes that will be delivered to their doorstep. Founded in 2016, Blank Beauty is set out to harness AI-driven color science and automated robotics to deliver on-demand, personalized color cosmetics both in-store and online. Visit BlankBeauty.com to learn more.

Three Roots Capital Receives $50 Million Allocation of New Markets Tax Credits

September 27, 2024

Team photo: Featured (from left to right): Kevin McDonnell (Controller), Keith Hickey (Chief Lending Officer, SVP), Grady Vanderhoofven (President & Chief Executive Officer), Kim Krebs (Loan and Investment Administrator), Chris Miller (Chief Financial Officer), Dennis Corley (Director of Small Business Lending and Investing), and Anderson Olds (Portfolio and Reporting Analyst).

The innovative finance company awarded NMTCs second year in a row, one of three awardees in Tennessee

Media Contact: Peyton Mills | peyton@piper-communications.com

KNOXVILLE, Tenn. – The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) recently awarded $5 billion in New Markets Tax Credits (NMTCs) to 104 Community Development Entities (CDEs) nationwide. This highly competitive program saw 196 applicants request $14.8 billion of credits. Three Roots Capital, an innovative finance company focused on economic and social impacts in low-income geographies, is pleased to announce it received $50 million from the NMTC Program, marking its second allocation in back-to-back award cycles. View the entire list of recipients here.

Three Roots Capital’s NMTC investment strategy is to provide flexible qualified low-income community investment (QLICI) loans to manufacturing and office projects that create quality, accessible jobs throughout highly distressed communities in the Appalachian and Delta regions.

“NMTCs are among the most efficient and effective economic development tools ever created. Winning these credits lets us support job-creating companies in some of the most distressed areas we serve,” said Chris Miller, Chief Financial Officer of Three Roots Capital. “Receiving back-to-back allocations of NMTCs is uncommon. Our team worked hard to deploy our prior year award and to write a compelling application for additional credits. Three Roots Capital is very encouraged and honored to be part of this exceptional group of awardees.”

Three Roots Capital is one of three awardees based in Tennessee. With its previous $45 million allocation, the company made two $22.5 million investments in rural manufacturers: Fitzgerald Trailers in Byrdstown, Tennessee and Hopkinsville, Kentucky; and Quality Metal Stamping in Henderson, Tennessee. Read more here.

About Three Roots Capital

Three Roots Capital is an innovative finance company that provides loans and equity investments to small businesses and real estate projects in Tennessee and Appalachia. 3Roots was established to address the chronic need for investment capital in central and southern Appalachia. 3Roots supports small businesses, entrepreneurs, real estate projects, and communities in economically challenged areas throughout the region. 3Roots is certified by the U.S. Department of the Treasury as a Community Development Financial Institution (CDFI) and as a Community Development Entity (CDE). For more information, visit www.3rootscapital.org.

Three Roots Capital Receives $45 Million Allocation of New Markets Tax Credits

October 04, 2023

The innovative finance company was one of only two recipients in Tennessee

Media Contact: Sarah Pope | sarah@piper-communications.com

KNOXVILLE, Tenn. – The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) recently awarded $5 billion in New Markets Tax Credits to 102 Community Development Entities (CDEs) nationwide. Three Roots Capital, an innovative finance company focused on economic and social impacts, is pleased to announce it is one of two recipients in Tennessee to receive $45 million from the New Markets Tax Credit (NMTC) Program.

Three Roots Capital seeks to use this allocation of federal tax credits to help finance industrial, manufacturing and commercial office projects in severely distressed regions of Appalachia, including East Tennessee.

“Receiving this $45 million allocation of NMTCs allows Three Roots Capital to add a powerful tool to our financial toolbox. Since our founding in 2016, Three Roots Capital has deployed more than $133 million of direct financing and fostered partnerships with 15 banks to better support our regional communities,” said Grady Vanderhoofven, President and Chief Executive Officer of Three Roots Capital. “With these New Market Tax Credits, we will continue this legacy and leverage these credits to create lasting economic and social impacts for years to come.”

About Three Roots Capital

Three Roots Capital is an innovative finance company that provides loans and equity investments to small businesses and real estate projects in Tennessee and Appalachia. 3Roots was established to address the chronic need for investment capital in central and southern Appalachia. 3Roots supports small businesses, entrepreneurs, real estate projects, and communities in economically challenged areas throughout the region. 3Roots is certified by the U.S. Department of the Treasury as a Community Development Financial Institution (CDFI) and as a Community Development Entity (CDE). For more information, visit www.3rootscapital.org.

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