The funding comes at a time when many early-stage beauty companies face tightening capital and broader pullbacks in DEI-related initiatives, including the Trump administration’s rollbacks earlier this year.
“With this milestone, founder and CEO Tisha Thompson joins the two percent of exclusively female-founded startups who have successfully raised funding,” the PR continued.
CosmeticsDesign spoke to Thompson for her insights into the investment and the company’s growth and expansion strategies.
Early growth positions brand for capital
According to Thompson, LYS Beauty’s momentum since its 2021 debut helped position the brand for investor confidence. “We launched in the wake of the pandemic, and that period took on completely new energy,” she shared. “People were more experimentative with their looks while also becoming increasingly conscious of ingredients, wellness, and skin health.”
Thompson explained that Encore recognized the brand’s potential early. “Encore Consumer Capital has a keen eye for early disruptors and saw the impact we were making, particularly in clean beauty and complexion,” she said.
“Their investment is a testament to our work in redefining inclusive, high-performance beauty that doesn’t compromise on ingredients,” she added.
Scaling operations and retail footprint
The Series A funding will support growth across multiple areas, including staffing, inventory, and retail expansion. “Most immediately, we’re investing in team growth both at our Atlanta headquarters and in the field,” Thompson shared.
“I’ll be looking to expand our Operations, Marketing, and Sales teams, particularly with field team members who are customer-facing brand experts.”
The brand’s retail presence will significantly increase with its entry into more than 800 Kohl’s locations via Sephora, the release confirmed, alongside sustained demand from existing channels including Sephora and TikTok Shop.
Improving inventory availability is also a top priority, particularly as LYS Beauty broadens its reach in physical retail. “We’re focused on improving inventory availability, which couldn’t be better timed” with the Kohl’s launches, Thompson said.
The expansion into Sephora at Kohl’s represents a significant step toward increasing brand accessibility. “Expanding into Sephora at Kohl’s is a major step in making LYS Beauty even more accessible,” said Thompson. “Whether it’s the soothing properties for sensitive skin, the depth of pigment, or the anti-aging ingredients infused into our complexion products, there’s something in LYS Beauty for everyone to cling to.”
TikTok Shop has emerged as a key revenue and discovery channel for LYS Beauty. “TikTok Shop was a strategic move for us,” said Thompson. “Our approach has been largely organic, with influencers and affiliate partnerships playing a huge role in our success.”
She added that the company has seen “incredible traction without even fully tapping into paid campaigns yet,” and that the brand will use its new capital to build on that momentum, and further noted that the brand will increase investments in experiential marketing, influencer partnerships, and community-driven campaigns.
Clean beauty, proven performance
Thompson shared that the brand’s mission has always been to challenge industry norms around clean beauty. “For a long time, there’s been a misconception that clean beauty doesn’t perform 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 your perfect shade.”
In 2024, the brand’s revenue nearly doubled year-over-year, which Thompson attributed to a combination of accessibility, product efficacy, and loyal customer support. “Our ease of use, shade range, and affordability have created a brand that resonates with everyone—from beauty novices to celebrity makeup artists,” she said.
Using leadership and company culture to propel momentum
Thompson credits the brand’s success to a small but effective internal team. “Any founder will tell you – your team is everything,” she said. “Despite being a lean team, we’ve been able to disrupt the industry in a major way.”
She concluded that “investing in company culture isn’t just about rewards… it’s about creating an environment where people feel valued, heard, and motivated to push boundaries.”