Moxie helps nurses open medi-spas by providing most of the tools they need to run their business, from invoicing software and marketing services to discount supplies. The startup raised a $10 million Series B led by existing investor Lachy Groom of Solo Venture Capital, with participation from SignalFire.
The round comes just a year after the startup disclosed a $15.7 million Series A, which valued Moxie at nearly triple its previous valuation.
“Our business has grown more than fourfold in the last year,” Moxie founder and CEO Dan Friedman said. “We didn't need the cash because we still had more than 75% of our Series A capital. But we had really big plans and a big vision, and [new funding] It helps us redouble our efforts.”
Medspas, treatment facilities offering minimally invasive cosmetic procedures such as Botox, specialty facials and laser treatments, are becoming increasingly popular. Most states require registered nurses to administer these procedures, so this growing industry is attracting many healthcare workers who are tired of working in hospitals and starting their own medspa businesses.
Friedman previously co-founded online coding business Thinkful and was looking for his next venture after selling his education company to Chegg for $100 million. He was inspired to start Moxie after hearing from a family friend about the complexities and high costs of opening a medical spa. He developed a “business-in-a-box” solution that allows nurses to set up clinics in a fraction of the time and cost of doing it on their own.
“We make it easier, faster and cheaper to start a medi-spa,” Friedman says, “and then help your medical facility grow with business software including payments, integrated buy now, pay later, marketing tools and a suite of compliance tools.”
The startup also helps medical spa owners save on their biggest expense — supplies — by partnering with large suppliers to negotiate bulk-buying discounts, allowing Moxie's clients to offer lower prices and better compete with larger medical spa chains run by companies like Laser Away and private equity-backed management companies.
Moxie also pairs spa owners with a success coach who coaches them on growing their business. The company makes money by charging clients a percentage of total sales, which is similar in many ways to a franchise model, with one key difference: Moxie doesn't license its brand. “Our client isn't 250 medical spas with 'Moxy' on the door,” Friedman says. “It's 250 medical spas with the entrepreneur's name on the door.”
Other venture-capital-backed companies offering medi-spa services include Addition, Greycroft-backed Ever/Body and Botox provider Peachy, but because Moxie doesn't operate its own clinics, Friedman said he doesn't see those startups as direct competitors.
“Med spas are a big segment, with over $15 billion spent a year,” Friedman said. “They can succeed, and we can succeed.”