Musely secures $360M from General Catalyst without giving up equity

Musely, a direct-to-consumer telemedicine platform specializing in compounded treatments for skin, hair, and menopause care, has secured over $360 million in non-dilutive capital from General Catalyst’s Customer Value Fund (CVF). Unlike traditional venture capital funding, this deal did not require Musely to give up equity or take on interest-bearing debt. Instead, the funding operates through a revenue-share agreement, allowing Musely to repay the capital with a fixed, capped percentage of revenue generated from the use of the fund. Founded in 2014 as a wellness community before pivoting to prescription skincare in 2019, Musely has remained cash flow positive for years and has avoided dilutive equity rounds since raising $20 million in 2014. CEO Jack Jia emphasized that the company consistently turned down traditional VC offers to preserve ownership. The CVF’s alternative financing model appealed to Jia because it offered more favorable terms than bank loans and avoided equity dilution, enabling Musely to maintain control while fueling growth. Musely has experienced an average revenue growth of 50% year-over-year and served over 1.2 million patients through asynchronous consultations with board-certified dermatologists and OB-GYNs. The company faces high customer acquisition costs typical of direct-to-consumer brands, and the infusion of capital from CVF will support sales, marketing, and other efforts to expand its customer base. Jia noted that scaling from a billion-dollar revenue company to the next level often requires significant capital, which this funding helps provide without the burden of traditional financing. Musely joins a portfolio of notable companies backed by CVF, including Grammarly, Lemonade, and Ro. The fund operates with its own limited partners and is separate from General Catalyst’s main $8 billion fundraise. This deal highlights a growing trend in alternative financing options for high-growth companies seeking capital efficiency and ownership retention in competitive markets.