Musely, a direct-to-consumer telemedicine company, has obtained more than $360 million in non-dilutive funding from General Catalyst’s Customer Value Fund (CVF). This funding approach allows the company to scale without giving up ownership.\
For more articles
Focus on Specialized Telehealth Treatments
The platform offers compounded prescription treatments targeting skin conditions, hair care, and menopause-related needs. CEO and co-founder Jack Jia shared that the company wasn’t actively seeking funding when CVF first approached him.
A Profitable Business That Avoided Equity Dilution
Founded in 2014 as a wellness community, Musely shifted to prescription skincare in 2019 and has remained cash-flow positive for several years. Jia had consistently declined traditional venture capital offers to avoid reducing his stake in the company.
How CVF’s Revenue-Share Model Works
Instead of taking equity or charging interest like a loan, CVF provides funding through a capped revenue-share agreement. Companies repay the capital using a fixed percentage of the revenue generated from the investment, making it a flexible financing option for businesses with steady income streams.
Why the Deal Made Financial Sense
Initially cautious, Jia later determined that CVF’s model was more cost-effective than both bank loans and equity financing. After analyzing the numbers, he concluded the structure was highly advantageous for long-term growth.
Funding Growth in a Costly DTC Market
Musely has been expanding rapidly, with revenue increasing დაახლოებით 50% annually and serving over 1.2 million patients. However, customer acquisition in the direct-to-consumer space is expensive. Jia noted that scaling from one billion in revenue to the next often requires equally significant capital investment.
Strengthening Customer Acquisition Efforts
The new funding will be used to boost marketing, sales, and other growth initiatives, helping Musely attract more customers while maintaining its capital-efficient approach.
Joining a Strong Portfolio of Companies
Musely is now part of CVF’s portfolio alongside companies like Grammarly, Lemonade, and Ro. Notably, CVF operates separately from General Catalyst’s primary funds, with its own group of limited partners.
A Capital-Efficient Growth Story
Since raising $20 million in 2014 from investors including DCM, Musely has not taken on additional equity funding. The company continues to provide patients with access to prescription treatments through asynchronous consultations with certified dermatologists and OB-GYNs, maintaining both efficiency and scalability.
