IM8 Secures $1B Funding From General Catalyst's Customer Value Fund
David Beckham-backed health drink startup IM8 has secured $1 billion in funding from General Catalyst's Customer Value Fund (CVF). Announced on Tuesday, the financing stands apart from a traditional venture capital investment because it does not involve General Catalyst taking an ownership stake in the company or diluting existing shareholders.
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| Credit: IM8 |
General Catalyst Uses an Alternative Funding Model
Unlike conventional venture capital firms that exchange funding for equity, General Catalyst's Customer Value Fund (CVF) provides financing through a different model.
Rather than purchasing shares in the business, CVF offers what are effectively loans with non-traditional repayment terms. Companies repay the funding they receive along with a fixed, capped percentage of the revenue generated from customers acquired through the financed growth.
Because of this structure, General Catalyst does not acquire stock in IM8 and will not become a shareholder. Likewise, IM8 avoids shareholder dilution while gaining access to capital intended to accelerate expansion.
General Catalyst has previously described this financing approach as being well suited to startups with predictable revenue streams and a clear strategy for using additional capital to drive growth.
How the IM8 Financing Works
The agreement is designed specifically around IM8's customer acquisition efforts.
Under the deal, the financing will cover up to 70% of IM8's customer acquisition costs.
In return, General Catalyst will receive a capped share of what it refers to as "reference income." According to the announcement, reference income is defined as the revenue generated by customers acquired through the financing, multiplied by a fixed gross-margin assumption.
Once General Catalyst has fully recovered its investment and reached the agreed cap on revenue sharing, all future revenue from those customers will return entirely to Prenetics, IM8's parent company.
This structure allows the lender to participate in customer-driven revenue until a predetermined limit is reached while enabling the company to retain all long-term customer value afterward.
IM8 Was Born From an Unlikely Partnership
IM8 was co-founded by CEO Danny Yeung, who describes himself as a high-school dropout before launching his entrepreneurial career.
Yeung previously founded the health company Prenetics, which became a publicly traded company in 2022.
Following Prenetics' public listing, Yeung moved in circles that eventually led to a dinner with David Beckham. According to the company, that meeting ultimately inspired the creation of IM8.
Today, IM8 operates as a subsidiary of Prenetics.
IM8 Focuses on Subscription-Based Health Drinks
IM8 sells a vitamin drink containing a range of compounds associated with longevity.
According to the company, the formulation includes ingredients ranging from açai fruit extract to Coenzyme Q10.
Customers purchase the product through a subscription model, creating the recurring revenue stream that aligns with General Catalyst's Customer Value Fund financing strategy.
Because the repayment model depends on customer-generated revenue, businesses with subscription-based income can be suitable candidates for this type of funding arrangement.
Why the Deal Avoids Equity Dilution
One of the defining features of the financing is that it allows IM8 to raise substantial capital without issuing new shares.
Traditional venture funding typically requires startups to exchange equity for investment, reducing the ownership percentages of existing shareholders.
Under the CVF model, General Catalyst instead earns a capped share of qualifying customer revenue until it reaches its agreed return. Once that cap has been met, the revenue generated by those customers flows entirely back to Prenetics.
This approach gives companies access to growth financing while preserving their ownership structure.
Grammarly Previously Used the Same Funding Vehicle
IM8 is not the first company to receive a $1 billion commitment through General Catalyst's Customer Value Fund.
As previously reported, Grammarly also secured $1 billion from the CVF in May 2025, shortly before completing its acquisition of Superhuman.
That earlier transaction demonstrated another example of General Catalyst using the fund to finance growth without taking an equity position in the recipient company.
IM8's $1 billion financing from General Catalyst's Customer Value Fund highlights an alternative approach to startup funding that prioritizes customer-generated revenue over equity ownership. By avoiding shareholder dilution while financing up to 70% of customer acquisition costs, the arrangement gives IM8 significant capital to support its expansion.
As more companies with predictable recurring revenue explore non-traditional financing options, the Customer Value Fund model continues to offer a different path for funding growth without changing company ownership.
Stay tuned for more updates on startup funding, health technology, and venture capital as new developments emerge.
