Key Takeaways
- IM8, co-founded by David Beckham, has raised $1 billion.
- The funding comes from General Catalyst’s Customer Value Fund.
- This investment model involves loans rather than equity stakes.
- IM8 focuses on health drinks with longevity-boosting ingredients.
Funding Details
David Beckham’s health drink startup, IM8, announced it has secured $1 billion in funding from General Catalyst’s Customer Value Fund (CVF). This funding approach is distinct from traditional venture capital, as it operates more like a loan with unique repayment terms.
Investment Structure
Unlike standard equity investments, CVF does not acquire stock or ownership in IM8. Instead, the startup will repay the loan amount along with a fixed percentage of its revenue, capped at a certain level. This structure allows IM8 to maintain full ownership without dilution while benefiting from the capital to fuel its growth.
About IM8 and Its Offerings
IM8 was co-founded by CEO Danny Yeung, who previously established Prenetics, a health company that went public in 2022. The partnership with Beckham emerged from their shared connections, leading to the creation of IM8, which offers a subscription-based vitamin drink enriched with ingredients known for their potential health benefits, including açai fruit extract and Coenzyme Q10.
Loan Utilization
The loan from General Catalyst is designed to cover up to 70% of IM8’s customer acquisition costs. In return, General Catalyst will receive a capped share of what it defines as “reference income,” which is calculated based on the revenue generated from customers multiplied by a fixed gross-margin assumption. Once the investment is recouped and the revenue cap is reached, all additional revenue will revert to Prenetics.
Previous Investments
This isn’t the first time General Catalyst has made a significant investment through its CVF. Earlier, the company provided $1 billion to Grammarly, just before its acquisition of Superhuman.