According to Sifted, London-based men’s health startup Manual has secured a $120 million debt facility from US VC firm General Catalyst. The funding came from General Catalyst’s Customer Value Fund in November 2024 and has already been deployed to boost Manual’s marketing efforts. CEO George Pallis confirmed the capital injection is being used to promote the company’s services. This marks the third major deal from General Catalyst’s CVF this year, following $120 million for HRtech Factorial in March and $105 million for Dutch fintech Finom in May. The unique funding model provides growth capital without taking equity, with repayment tied directly to customer value generated from the investment.
The debt-not-equity play
Here’s what makes this deal interesting: General Catalyst isn’t taking equity in Manual. Instead, they’re using their Customer Value Fund model where they only get paid when the company gets paid from customers acquired through this marketing push. Basically, it’s performance-based financing where both sides win if the marketing works. The firm’s website explicitly states they “pre-fund a company’s S&M budget” and “the company never comes out of pocket to pay GC back.” This creates alignment without dilution – pretty clever when you think about it.
The weight-loss gold rush
Manual’s pivot into weight-loss drugs two years ago looks increasingly prescient. They’ve positioned themselves right in the middle of the GLP-1 treatment boom that’s taken over healthcare. With Ozempic and Mounjaro becoming household names, Manual is betting big that men want these treatments delivered through digital health platforms rather than traditional healthcare channels. And they’re not alone – the entire digital health space is chasing this opportunity. But $120 million in pure marketing firepower? That’s enough to make some serious noise in a crowded market.
The bigger trend here
This deal signals something important about where venture capital is heading. General Catalyst is essentially acting like a marketing agency that only gets paid on performance – but with venture-scale dollars. We’re seeing more creative financing structures emerge as companies try to avoid dilution in later rounds. And for Manual, this gives them massive marketing ammunition without giving up ownership. The question is: can they acquire customers efficiently enough to make this model work? With weight-loss drugs being so hot right now, the timing might be perfect. But what happens when the hype cycle cools? That’s the billion-dollar question nobody can answer yet.
