Neutonic, a company specializing in nootropic drinks, has secured US$3.7 million in its initial funding round, raising its valuation to US$20 million.

The startup was founded in November 2023 by James Smith, Chris Williamson, Luke Betts, and Shan Hanif, CEO of Genflow.

Investors in this funding round include Codie Sanchez, Dan Martell, Mike Thurston, Jay Parker, JDI Investment, Kayla Itsines, and Alan Barratt, founder of the sports nutrition brand Grenade.

Since its launch, Neutonic has sold over three million cans of its “Productivity Drink,” generating US$10 million in sales.

The company reports leading sales on Amazon in both the energy drink and grocery categories.

Looking ahead, Neutonic plans to expand its retail presence in the UK and US while preparing for international launches. The company aims to increase its workforce in 2025 to support growth and distribution efforts.

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🔗 Source: Tech.eu

🧠 Food for thought

1️⃣ Functional beverages riding the sober-curious wave with perfect timing

Neutonic’s rapid growth coincides with a significant shift in drinking habits, particularly among younger consumers.

Nearly half (49%) of Gen Z and Millennials are actively trying to reduce alcohol consumption in 2025, a 44% increase since 2023, with Gen Z leading this change at 65% planning to drink less 1.

This demographic shift represents a massive market opportunity, with UK projections showing low/no-alcohol beverages growing from £380 million in 2024 to £592 million by 2029 2.

Approximately one-third of Gen Z abstains from alcohol entirely, preferring alternatives that still provide sophisticated social drinking experiences without the negative effects 3.

Neutonic’s positioning as a “mindful alternative” directly addresses this consumer pivot toward functional benefits, mental clarity, and health-consciousness that is reshaping beverage consumption patterns.

2️⃣ Nootropic drinks emerging as a scientific response to energy drink concerns

Traditional energy drinks have been linked to negative mental health outcomes, with research showing associations between chronic consumption and increased stress, anxiety, and depression, particularly among young adults 4.

Conventional energy drinks can contain extreme caffeine levels, up to 505mg per serving, potentially triggering adverse health effects and post-consumption crashes 4.

Neutonic’s formulation includes specific cognitive enhancers like Cognizin (citicoline), Rhodiola Rosea, and Panax Ginseng, ingredients increasingly recognized for their evidence-based benefits for mental performance 5.

The company’s claim that 93% of customers report no energy crash 6 directly addresses a primary pain point with traditional energy products, signaling a more sophisticated approach to functional beverages.

This science-focused positioning helps explain Neutonic’s impressive sales trajectory of $10 million and 3 million cans within just 18 months of launch 7, suggesting consumers are increasingly prioritizing formulations with research-backed ingredients.

3️⃣ Category veterans betting on functional beverages as the next growth frontier

Alan Barratt’s investment is particularly significant as he previously built Grenade into a leading sports nutrition brand that sold to Mondelez for £200 million in 2021, demonstrating confidence from successful category builders 7.

The investor mix includes entrepreneurs from diverse but adjacent sectors, such as fitness (Kayla Itsines, Mike Thurston), SaaS (Dan Martell), and apparel (Gym King founder), indicating cross-industry recognition of functional beverages as a growth category 7.

The valuation multiple (approximately 2x revenue at $20 million valuation on $10 million sales) suggests investors see substantial headroom for expansion, particularly as the company plans strategic expansion into retail channels beyond its current direct-to-consumer focus.

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