Moxie helps nurses open medspas by providing them with most of the tools they need to run their businesses, from billing software and marketing services to discounted supplies. The startup has raised a $10 million Series B led by existing investor Lachy Groom, a solo VC, with participation from SignalFire.
The round comes only a year after the startup announced its $15.7 million Series A, which values Moxie at nearly triple its previous valuation.
“Our business grew more than 4x over the last year,” said Moxie’s founder and CEO Dan Friedman. “We still had more than 75% of the capital from Series A, so there was no need for cash. But we also have a really big agenda and a big vision, and the [new funding] helps us double down.”
Medspas — treatment facilities that offer minimally invasive aesthetic procedures such as Botox, specialized facials, and laser treatments — have bee increasing in popularity. Because most states require that registered nurses administer these procedures, the growing industry has attracted healthcare workers, many of whom were burned out at their hospital jobs, to launch their own medspa businesses.
Friedman, who previously co-founded Thinkful, an online coding business, was looking for his next entrepreneurial act after selling his educational company to Chegg for $100 millio . Friedman decided to start Moxie after learning from a family friend about the complexities and high costs involved in launching a medspa. He developed a “business-in-a-box” solution that allows nurses to have their clinics ready for operation at a fraction of the time and cost compared to if they do it themselves.
“We make it easier, faster, and cheaper to launch a medspa,” Friedman said. “Then we support the growth of the practice with business software, including payments, integrated buy now, pay later, marketing tooling, and a suite of compliance tools.”
The startup also helps medspa owners save on their most significant expense, supplies, by partnering with major suppliers to negotiate bulk discounts. This enables Moxie’s clients to offer lower pricing and better compete with major medspa chains, such as Laser Away and those operated by private equity-backed management companies.
Moxie also pairs spa owners with success coaches who guide business growth. The company makes money by charging its clients a percentage of total sales, which resembles a franchise model in many ways, but there is one key differentiator: Moxie isn’t licensing its brand. “Our clients are not 250 medspas with ‘Moxie’ on the door,” Friedman said. “These are 250 medspas with their entrepreneurs’ names on the door.”
Other VC-backed companies that offer medspa services include Addition and Greycroft-backed Ever/Body and Botox provider Peachy. But since Moxie doesn’t run its own clinics, Friedman said he doesn’t view these startups as direct competitors.
“It’s a big category with more than $15 billion a year spent on medspas,” Friedman said. “They can succeed, and we can succeed.”