Skims, Kim Kardashian’s business, has raised further capital and is valued at $5 billion

Jens Grede and reality TV star Kim Kardashian launched Skims, a shapewear company valued at $5 billion. On Wednesday, the company revealed that it had raised $225 million in new capital.

Kardashian’s business endeavors, such as her SKKN cosmetics line, have profited from her enormous social media following and drawn in a youthful audience.

Similar to this, venture capital funding was drawn to other celebrity-backed ventures as businesses wagered on the marketing prowess and existing fan base of well-known founders to spur consumer demand.

Earlier this year, Rihanna-backed Fenty Beauty and Khloé Kardashian’s Good American secured venture capital backing, while Elf Beauty agreed to buy Hailey Bieber’s skincare and makeup line, Rhode, for almost $1 billion.

Investment behemoth Goldman Sachs Alternatives led the apparel company’s most recent funding round, which also included entities connected to BDT and MSD Partners.