Musely secures $360M from General Catalyst without giving up equity
Original: Musely secures $360M from General Catalyst without giving up equity
Why This Matters
Demonstrates alternative financing model for profitable companies seeking growth capital without dilution
Direct-to-consumer telemedicine platform Musely secured over $360 million in non-dilutive capital from General Catalyst's Customer Value Fund. The company specializes in compounded treatments for skin, hair, and menopause care, serving over 1.2 million patients with 50% year-over-year revenue growth.
Musely, founded in 2014 as a wellness community before pivoting to prescription skincare in 2019, received funding through CVF's alternative financing model that operates like a revenue-share agreement rather than traditional equity investment. CEO Jack Jia said he wasn't seeking capital as the company has been cash flow positive for years, but found CVF's terms more favorable than bank loans and less costly than dilutive equity rounds. The funding will support sales, marketing, and customer acquisition efforts to address the high costs of acquiring new customers for DTC brands. Musely joins CVF's portfolio including Grammarly, Lemonade, and Ro.