Musely secures $360M from General Catalyst without giving up equity
Musely, a telemedicine platform offering compounded treatments for skin, hair, and menopause care, has secured over $360 million in non-dilutive funding from General Catalyst's Customer Value Fund. The financing arrangement is structured as a revenue-share agreement rather than equity or debt, allowing Musely to retain full ownership. The capital will support customer acquisition and growth initiatives for the cash flow-positive company.
- ▪Musely has been cash flow positive for years and had not raised equity capital since its initial $20 million round in 2014.
- ▪The $360 million from General Catalyst’s Customer Value Fund is structured as a revenue-share agreement with no equity stake or interest charges.
- ▪Musely has served over 1.2 million patients and grows revenue at an average of 50% year-over-year.
- ▪The funding will be used to scale sales, marketing, and customer acquisition efforts.
- ▪Musely operates through asynchronous consultations with board-certified dermatologists and OB-GYNs.
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Musely, a direct-to-consumer telemedicine platform, has secured over $360 million in non-dilutive capital from General Catalyst’s Customer Value Fund (CVF). The company specializes in compounded treatments for skin, hair, and menopause care. Musely co-founder and CEO, Jack Jia, told TechCrunch that when CVF investors reached out to him last year, he wasn’t looking to raise capital. That’s because Musely, which was founded in 2014 as a wellness community before pivoting to prescription skincare in 2019, has been cash flow positive for years, he said. Jia didn’t want to reduce his ownership in the company by selling off a chunk of it to VCs. They frequently approached him about a potential round and he consistently turned them down, he said.
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