Deal Dive: Betting on beauty fads is big business

As a woman in her 20s with an Instagram account, I’ve witnessed the explosive rise and destigmatization of medical spa treatments. From the influencer I ran track with in high school posting promos for lip blushing and fillers, to constantly discussing buying a Groupon for Baby Botox with my friend Emily, these treatments have become a part of regular conversation in a way they haven’t in the past.

The underlying medical spa industry has grown rapidly alongside its new popularity, too. Medical spas are projected to be a $30 billion business by 2030, according to a report by Grand View Research. And the American Med Spa Association reports that the number of clinics offering these treatments grew 62% from 2018 to 2022.

Investors are starting to take note of this industry. Most of these medical spas — 81%, according to American Med Spa Association data — are independent clinics or small businesses. Private equity firms are starting to circle like vultures seeking out prime candidates for roll-up strategies. Startups are building tech solutions for these small businesses with VCs seemingly eager to back them.

So when I saw that RepeatMD, a vertical SaaS company for the medical spa industry, raised a sizable $50 million Series A, I wasn’t surprised. But I did have one question.