David Beckham’s health drink startup IM8 takes $1B from General Catalyst’s unusual CVF fund
David Beckham's health startup IM8 has secured $1 billion in non-dilutive funding from General Catalyst's Customer Value Fund. The deal uses a revenue-sharing model rather than traditional equity, allowing the company to scale without ownership dilution.
Why it matters
This deal highlights the growing trend of alternative financing models for startups that prioritize predictable revenue over traditional venture capital equity.
David Beckham’s startup IM8 has taken on $1 billion in funding from General Catalyst’s Customer Value Fund (CVF), the company announced on Tuesday.
CVF doesn’t make standard venture equity investments, but offers what are essentially loans with some non-traditional repayment terms. Startups funded by CVF repay the loan amount along with a fixed, capped the percentage of revenue they generate.
As such, GC isn’t buying stock, and won’t have an ownership stake in IM8. Likewise, the startup’s ownership will not be diluted. As GC previously told TechCrunch , this is an option for startups that have predictable revenue streams and a plan for how more capital will supercharge their growth.
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