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.

🔗 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.