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).

When CVF approached Musely co-founder and CEO Jack Jia last year, he was initially reluctant to raise funds. However, traditional venture capital typically involves selling equity or facing high-interest loans, which Jia wanted to avoid to preserve his ownership stake.

CVF’s alternative financing is akin to a revenue-share agreement where companies with predictable revenue streams can borrow capital and repay it from their profits. This model offers Musely a way to grow its customer base without diluting ownership or incurring high-interest debt, making it an attractive option for the company’s unique business model.

Musely has been growing its revenue by 50% year-over-year and serving over 1.2 million patients. For direct-to-consumer brands like Musely, acquiring new customers can be extremely costly. The funding from CVF will support sales, marketing, and other customer acquisition efforts, ensuring sustainable growth.

The deal also aligns with Musely’s history of being capital-efficient, having raised only $20 million in 2014 and not needing additional equity capital since then. This non-dilutive financing is a game-changer for companies like Musely that prioritize retaining ownership while still needing significant growth capital.