Stress invariant-based failure criteria, which are acknowledged for their simple expression but elegant description, still remain irrational considerations in its original formulation with regard to matrix failure in FRP composite materials. This study firstly re-examines the debatable hypothesis of infinite strength under equi-biaxial transverse compression. Afterwards, further attention is paid to the intrinsic relationship of transverse strengths when employing the assumption of transverse isotropy. During the formulation of the improved failure criteria from invariant theory, one notable feature is that deductions of strength coefficients, rather than direct use of measured strengths, are preferred to satisfy the mathematical and physical logic underlying the predefined assumptions and conditions. The analytical expressions for transverse shear strength and biaxial tensile strengths are deduced with Mohr’s fracture hypothesis, while biaxial compressive strength is estimated according to the theory of ductile/brittle transition. The predictions are validated based on computational micromechanics. The proposed criteria can be totally defined in terms of conventionally uniaxial strengths, thereby eliminating the need of biaxial strength parameters that are difficult to be measured experimentally. Combined practically and virtually experimental evaluations show that more reasonable and more accurate predictions under various stress conditions can be achieved by the developed stress invariant-based criteria, especially for the combined transverse normal stress case.