Funding comes as many early stage beauty companies are tightening their capital with DEI-related initiatives, including the Trump administration, and facing a wider pullback Rollback Early this year.
“This milestone has led to founder and CEO Tisha Thompson joining 2% of startups raised solely by women who have successfully raised funds,” PR continued.
CosmeticsDesign spoke to Thompson about her insights on investment and company growth and expansion strategies.
Early Growth Jobs are Brands for Capital
According to Thompson, since its debut in 2021, Lys Beauty’s momentum has helped position the brand for investors’ trust. “We launched in the wake of the pandemic and the period took on a completely new energy,” she shared. “People were making their appearance more experimental and were increasingly conscious of the ingredients, health and skin health.”
Thompson explained that Encore recognized the brand’s potential early. “The capital of the Encore consumers has a keen eye on early vandals, and we saw the impact we had on the beautiful beauty and complexion,” she said.
“Their investments are testament to our work redefining the aesthetics of inclusive, high performance that is uncompromising on materials,” she added.
Scaling operations and retail footprint
This Series A funding supports growth in multiple areas, including staffing, inventory and retail expansion. “Most of the time, we invest in team growth at both Atlanta headquarters and on-site,” Thompson shared.
“I am looking at expanding my operations, marketing and sales teams, especially with my field team members who are experts in brands aimed at clients.”
The brand’s retail presence will increase dramatically with sustained demand from existing channels, including Sephora and Tiktok Shop, when entering more than 800 call locations via Sephora.
Increased availability of inventory is also a top priority, especially as Lys Beauty expands its reach with physical retail. “We are focused on improving inventory availability.
The expansion to Sephora at Coles represents an important step towards improving brand accessibility. “Expanding to Sephora at Coles is a huge step towards making Rice’s beauty even more accessible,” Thompson said. “There’s something about the beauty of Lys because everyone clings to, whether it’s sensitive skin, pigment depth, or soothing properties for anti-aging ingredients injected into our complexion products.”
The Tiktok shop has emerged as a key revenue and discovery channel for Lys Beauty. “The Tiktock Shop was a strategic move for us,” Thompson said. “Our approach is primarily organic, and influencers and affiliate partnerships play a major role in their success.”
She added that the company “still haven’t seen incredible traction without taking full advantage of its paid campaigns yet,” adding that the brand has used new capital to build its momentum, and that it also focused on increasing investments in experiential marketing, influencer partnerships and community-driven campaigns.
Beautiful beauty, proven performance
Thompson shared that the brand’s mission has always been to challenge industry norms with a focus on clean beauty. “For a long time, there was a misconception that pretty beauty doesn’t work as well,” she said. “That belief motivated me to prove that you can take care of your skin, get the performance you want and find the perfect shade for you.”
In 2024, brand revenue almost doubled year-on-year, with Thompson attributing it to a combination of accessibility, product effectiveness and loyal customer support. “Our ease of use, shade range and affordability have created a brand that resonates with everyone, from beauty beginners to celebrity makeup artists,” she said.
Use leadership and corporate culture to drive momentum
Thompson praises the brand’s success with a small but effective internal team. “Every founder tells you – your team is everything,” she said. “Even though we’re a lean team, we’ve been able to disrupt the industry in key ways.”
She concluded, “Investing in a corporate culture is not just about rewards. It’s about creating an environment in which people feel willing to push boundaries.”
