#114: The Story of Moxie (vSaaS for Medspas), Youth Sports Industry Scorecard
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Alright, let’s get to it…
One Biz Story:
The Story of Moxie - vSaaS for Medspas
The medspa industry is BOOMING, and Moxie is at the forefront of this growth, providing medspa owners with the tailor-made tools to start, run, and grow their business.
Founded in 2022 by Dan Friedman, a seasoned entrepreneur with a proven track record, Moxie was born out of a recognition of the unique challenges faced by medspa businesses.
Friedman’s previous venture, Thinkful, was acquired by Chegg in 2019 for $80 million, and with Moxie, he set out to address the lack of specialized software in the medspa space.
The Medspa Market:
The medspa industry is one of the fastest-growing segments in the beauty and wellness sector. In 2023, the U.S. medspa market was valued at approximately $15-17 billion, with projections to reach $25-27 billion by 2028.
The market is highly fragmented, with around 8,000-10,000 medspas in the U.S., primarily concentrated in urban areas like California, Florida, Texas, and New York. Key drivers of this growth include an aging population, increasing disposable income, and the growing acceptance of aesthetic treatments.
Moxie’s Product:
Moxie offers a comprehensive SaaS platform designed specifically for medspas. Its features include:
Appointment scheduling
Client management
Marketing automation
Payments & Financial reporting
Inventory management
Staff training & development
Revenue and Growth
I asked an AI what they think their revenue is at, it’s estimate is ARR of $15 million. If I had to guess I’d say $10M.
Funding and Investors
Moxie has raised $20M+ with investors like Lachy Groom and Signalfire. With strong financial backing, Moxie is well-positioned to continue its growth trajectory.
Competitors in the Medspa Space
Moxie competes with several other software providers in the medspa industry, including Zenoti, AestheticsPro, and SimpleSpa. Zenoti, for example, offers a cloud-based platform for managing spa and salon operations, while AestheticsPro focuses on HIPAA-compliant solutions for medspas. Moxie differentiates itself with its specialized tools for medspa business management and AI-powered insights.
The Future of the Medspa Industry and Moxie’s Role
The medspa industry is expected to continue its strong growth, driven by technological advancements, increasing consumer demand for non-invasive treatments, and the expansion of services targeting men and older demographics. Moxie is well-positioned to capitalize on this growth by providing medspa owners with the tools they need to manage and scale their businesses efficiently.
I’m excited to see what Moxie does. I think they will build the market-leader in this space. That seems like it is doing nothing but continuing to grow.
One Vertical SaaS Breakdown:
Youth Sports Industry Scorecard
Thinking about building a software business?
Here's an industry scorecard on building or investing in vSaaS for Youth Sports ⬇
Market Overview: The $19.2 Billion Landscape
The youth sports industry represents a massive, yet complex ecosystem that's ripe with both opportunities and challenges for vertical SaaS founders and investors. With a current market size of 19.2 billion and projected growth to 28.7 billion by 2028 (a CAGR of 7.8%), the sector demands a nuanced approach.
Segmentation:
Total Establishments: 100,000+ youth sports organizations
Sports Facilities: ~20,000 dedicated venues
Private Sports Clubs: 38,000 academies
Employment Impact:
Direct Jobs: 400,000
Indirect/Part-time: 2.5 million
Volunteers: 6.5 million
Vertical SaaS Opportunities:
1. Fragmented Management Landscape
The current software ecosystem reveals significant gaps:
There are definetly some big players, I wrote about LeagueApps here (and I’d never want to compete against Brian Litvack and team) but it doesn’t seem like their is a true market leading end-to-end platform that dominates YET.
2. AI-Powered Differentiation
Potential AI applications include:
Automated performance analysis
Injury prevention algorithms
Intelligent team formation
Personalized training recommendations
3. Payment and Financial Technology
Payments definetly seems to be where the money is as youth sports teams can’t cough up a lot of $$ for SaaS subscription fees.
Flexible registration fee structures
Equipment purchase platforms
Tournament fee management
Travel expense processing
4. Business-In-A-Box
Good opportunity for someone to build a business-in-a-box concept here. Think what Moxie did for Medspas, but for Youth Sports. Can you make it very turn key for someone to incorporate their business, set up their bank accounts, and really get going quickly/easily?
Challenges: Why This Market Isn't for the Faint-Hearted
1. Complex Stakeholder Ecosystem
Multiple decision-makers: Parents, Coaches, League Administrators
Varied technological literacy
High customer acquisition costs
2. Low Willingness to Pay
Many organizations operate on tight budgets
Volunteer-driven management
Price sensitivity is extremely high
3. Regulatory and Compliance Hurdles
Child safety regulations
Data privacy concerns
Varying state-level sports management rules
Founder Playbook: Building a Successful Vertical SaaS in Youth Sports
Solve multiple problems simultaneously
Design for low-tech users
Provide clear ROI
Build trust through compliance and safety features
Create network effects within local sports communities
Conclusion: Cautious Optimism
The youth sports software market is not a guaranteed success, but for founders and investors who can navigate its complexities, significant opportunities exist. The key is understanding the nuanced ecosystem, solving real problems, and building solutions that genuinely improve the youth sports experience.
Investment Readiness Score: 6/10
Massive market: ✓
Clear pain points: ✓
Technological potential: ✓
Execution complexity: High
Competition: High
Recommendation: Approach with strategic caution, deep market research, and a willingness to pivot.
PS — I use VSG's AI Research App to run these reports. You can run your own industry report (and chat to an AI about it) over at:
One ’How To’:
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