Birchbox gets $15M from inside investors to stay afloat

The original subscription service needs a lifeline.

Birchbox, the once-buzzy beauty startup, raised $15 million in additional funding from current investors in an effort to stave off a cash flow problem, Recode reported.

The money is needed to shore up the company after two rounds of layoffs this year and a $60 million investment in 2014 that pressured the startup to operate at a higher level than it was quite prepared for.

The company, founded in 2010, was the first to master the subscription service, offering samples of beauty products for a $10 monthly fee. Subscribers could then buy full-size versions of the products through Birchbox's website.

Since 2010, the subscription service model has taken off, with Dollar Shave Club's $1 billion acquisition as the most recent success story.

Meanwhile, Birchbox exploded until it had to cut back. Now, it's focusing on reaching profitability.

“Obviously, 2016 has been a very hard year from many perspectives,” Birchbox co-founder and CEO Katia Beauchamp told Recode. “But the idea is to be in control of our own destiny, and now we’ll be able to become profitable very soon and going forward."

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In a statement, the company said its investors supported its long-term vision.

"Birchbox raised $15 million from existing investors to bridge the company to profitability," a spokesperson said. "Birchbox’s investors are very supportive of its ambitious long-term vision, and continue showing their confidence in the business through this round of financing."

Birchbox has now raised about $87 billion, according to Crunchbase. Its most recent round featured no new investors.