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As published by Cosmetic Executive Women: In this Q&A, Anchin’s Carolyn Naporlee-Cipolla speaks with Cristina Nuñez of True Beauty Ventures about brand resilience, investor red flags, and what beauty founders often get wrong — and right.

Anchin’s Carolyn Naporlee-Cipolla had the pleasure of interviewing Cristina Nuñez, co-founder of True Beauty Ventures, a leading sector specialized fund in beauty and wellness. Nuñez offered thoughtful perspectives on where brands often miss the mark, what truly sets standout companies apart in today’s competitive landscape, and what continues to fuel her passion for working in the beauty industry. Her reflections are both candid and inspiring, offering valuable insights for anyone interested in brand strategy or the evolving beauty space.

Carolyn Naporlee-Cipolla: Many of our beauty brand clients are concerned about financial resiliency in the face of today’s market volatility. In your opinion, how can beauty brands prepare for potential economic slowdowns, market fluctuations, and tariffs?

Cristina Nuñez: At True Beauty Ventures, we believe resilience starts with margin discipline. From day one, brands should build margin into the business not just as a financial metric, but as a buffer against uncertainty. Whether it’s optimizing cost of goods, simplifying supply chains, or diversifying vendors geographically, brands that proactively manage their unit economics are far better equipped to weather volatility.

Tariffs, in particular, remain a moving target, so brands need the flexibility to pivot sourcing strategies quickly. That means scenario planning isn’t optional; it’s a necessity. I’ve always loved the phrase, “failing to prepare is preparing to fail.” The best-prepared brands aren’t just reactive. They are forward-looking and intentional, which allows them to navigate almost any adversity with agility and confidence.

CNC: Given the conversations I’m having with founders right now, navigating today’s economic uncertainty is top of mind. What advice would you give to beauty founders looking to navigate the current economic climate and position their businesses for long-term success?

CN: Play the long game. In a tighter capital environment, it’s tempting to chase short-term wins, but enduring brands are built over time. Invest in what creates staying power: clear and differentiated positioning, a strong community, healthy margins, and operational rigor. And choose your partners wisely. If you’re lucky enough to have investor options, pick ones who understand your category, roll up their sleeves, and offer true strategic guidance. The right investors can help you avoid costly missteps and support you through both growth and adversity. Also, remember there’s no single definition of success, and most “overnight” wins are years in the making. Don’t get distracted by headlines. Define what success looks like for you, and set clear, achievable milestones that chart a path toward it.

CNC: As both an accountant and advisor to beauty founders, I often help brands prepare for investor conversations—and one of the most common questions I hear is, “What exactly are investors looking for?” What qualities do you look for in a beauty brand before deciding to invest?

CN: At True Beauty Ventures, we use our “5 Ps” framework: Positioning, Product, People, Performance, and Partnership. We look for brands with clear whitespace positioning, standout products, authentic and driven founders, early signs of traction, and openness to collaboration. We don’t just back businesses. We back people. Venture investing is, at its core, a bet on the founders. The right founder shoots the arrow, but the right team ensures it lands. Of all the Ps, People is the one you simply cannot get wrong.

CNC: Working closely with early-stage beauty companies, I’ve seen how easy it is to fall into certain traps, especially when they’re growing fast. Can you share some common mistakes that beauty startups make, and how they can avoid them?

CN: A common mistake is underestimating the capital and operational muscle required to succeed at retail. Getting on shelf is the easy part; winning at retail takes real investment. Another is chasing virality or influencer hype at the expense of brand fundamentals. A moment of attention doesn’t equal lasting loyalty. The strongest brands lead with patience, consistency, and authenticity. And on the team front, too many founders hire fast and fire slow. It should be the opposite. Be quick to part ways with the wrong people and take your time hiring the right ones.

CNC: What inspired you to become an investor in the beauty industry?

CN: After years in private equity and investment banking, I craved more purpose and creativity in my work. Beauty felt both personal and full of potential. It’s a category fueled by consumer passion, cultural relevance, and a space where female founders thrive.

My first operating role at Laura Geller Beauty, and later as GM at Clark’s Botanicals, gave me a hands-on education in brand building. I didn’t expect those roles to lead me back into investing, but they gave me a perspective I never could have gained from the investor seat alone.

Looking back, my career may seem orchestrated, but it wasn’t. It was a series of left and right turns that built a stronger foundation than I could have ever planned. I’m grateful for that journey because it has made me the kind of investor who is both a truth teller and empathetic, encouraging but patient, and strategic while also tactical when needed.

CNC: It’s incredible how even seemingly unrelated experiences can make us even stronger and more well-rounded. Can you share a memorable moment from your career that made you fall in love with the beauty industry?

CN: Absolutely. I remember it clearly. It was my first CEW event, when I was still in private equity. My now cofounder, Rich Gersten, took me because Laura Geller, founder of Laura Geller Beauty, was being honored with a CEW Achiever Award. Walking into that ballroom and seeing hundreds of successful women leading beauty brands was transformational. Until then, I had never had a female mentor or even realized how much success and joy could come from this industry. Finance was the only track I knew, but that day opened my eyes to a whole new path. Hearing those women share their stories made me feel seen. From that moment on, I knew I had to be in that room not just as a guest, but as part of the industry.

CNC: One topic that comes up time and again in my conversations with beauty founders is raising capital—specifically, the challenges of translating vision into investor readiness. There’s often a gap between what founders want to communicate and what investors need to see. From your perspective, what are some common challenges beauty founders face when seeking investment, and how can they overcome them?

CN: One of the biggest challenges is simply getting in front of the right investors. I always encourage founders to do their homework: talk to other founders who have raised capital, understand the investor landscape, and identify which firms invest in your category and stage of growth. A common frustration is the chicken-and-egg dynamic where investors want more proof of concept or traction, but capital is needed to build that traction in the first place. My advice is to ask direct questions and get clear on what specific milestones investors need to see in order to move forward. Then keep them updated as you hit those milestones. It’s a great way to demonstrate not only your progress, but also your capabilities and consistency as a founder. And don’t shy away from sharing the challenges alongside the opportunity. Investors value transparency, coachability, and a growth mindset.

CNC: I’ve also seen how important it is to understand what not to do. What are some red flags that might deter you from investing in a business?

CN: Lack of founder self-awareness is a major one. If a founder can’t acknowledge challenges or isn’t open to feedback, it signals potential friction ahead. Coachability and collaboration are essential at the early stage, especially since the road to growth is rarely linear. Another red flag is poor margin structure or no clear path to profitability. In beauty, strong gross margins aren’t optional. A brand that can’t demonstrate healthy unit economics or a plan to improve them will struggle to scale sustainably. We also pay close attention to product quality and brand differentiation. If a concept feels like a “me-too” brand chasing trends without a clear reason to exist, it’s hard to get conviction. The strongest brands have a distinct identity, an authentic story, and a real emotional connection with their consumer. True Beauty Ventures is a beauty and wellness dedicated emerging growth fund that was created to provide not just capital to indie brands in this space, but also true partnership and sector expertise.