So we just saw that David Beckham raised a billion dollars for IM8, his health drink company, from General Catalyst.

So we just saw that David Beckham raised a billion dollars for IM8, his health drink company, from General Catalyst. A billion dollars for a vitamin drink? I mean, I've seen the man, so whatever is in that, it's working. But the star power is really the headline. The real story is how he raised it, because General Catalyst didn't buy a single share here. Like they're not getting a stake, they're not getting a traditional board seat that they would normally get. So Beckham gave up nothing and got everything. And this might give us a glimpse of how the future of venture may work. Just hear me out. So General Catalyst has a vehicle they call the Customer Value Fund, and it doesn't buy stock. It works more like a loan. They finance up to 70% of customer acquisition costs, the CAC, and then they take a capped slice of the revenue that those customers then generate. And so once GC makes its money and a capped return, then they cut off the tap and everything else goes to the company. So it sort of sounds like venture debt, but it's really a hybrid, because real venture debt is really a fixed loan, no matter what happens. This one floats on actual revenue, and there's no 10-year exit to wait for. And so here's why I think we'll see more of this in the future. Traditional venture is a 10-year bet. You put money in, you wait for a decade and pray for exit. And that works when you can see the future. But right now, copilots became AI native apps and now become AI agents, all in 18 months. The frontier labs are now eating whole verticals. Nvidia is now shipping open source models that undercuts the startups that originally were built on top of it. 10 years is a long time to wait now for something that could be obsolete in like 18 months. So capital will have to adapt. If the exits are unpredictable but the revenue is real, then why wait for an exit? Lend against the cash flow, get paid for the operations. And this isn't just like a consumer drink trick. General Catalyst ran this same structure for Grammarly recently. They put a billion into the AI software company right before they bought Superhuman. So whether it's consumer or software, they're running the same playbook. Beckham's drink is obviously the celebrity headline that gets all the attention, but the structure underneath is the real story, because in a world that's moving too fast for 10-year bets, the smart money is now getting paid from the business itself. And again, if you like this sort of thing and want to stay close, join our community, Frontier, link in bio.