Prenetics, the Nasdaq-listed consumer health company behind direct-to-consumer premium supplement brand IM8, has secured up to US$1 billion in growth financing from global VC firm General Catalyst’s Customer Value Fund (CVF).
As part of the deal, CVF will fund up to 70 per cent of IM8’s monthly marketing spend in exchange for a capped return, calculated based on each month’s “cohort” of newly acquired customers. The fresh capital will enable IM8 to “invest more aggressively in brand and marketing,” according to a statement by Prenetics.
“For a year, investors have asked whether we were spending too much on customer acquisition,” said Danny Yeung, CEO of Prenetics and co-founder of IM8, in a statement about the financing. “Now the proof is public: every dollar we have ever spent acquiring customers has already returned US$1.44 in gross profit—and that number rises every month, because these are subscribers. The right question was never whether we were spending too much; it’s whether we were spending enough.”