Brain Fuel Gets a Boost: Neutonic Raises $3.7M to Take on the Functional Drink Market

Courtesy: Neutonic

Eighteen months after its debut, London-born Neutonic has tapped into a growing global demand—and raised $3.7 million in its first funding round at a $20 million valuation. Co-founders James Smith, Chris Williams, Luke Betts, and Shan Hanif launched the brand in November 2023, seeking to redefine how health-conscious consumers fuel their days.

To date, Neutonic has sold over three million cans, hit $10 million in revenue, and taken the #1 spot in both energy drink and grocery categories on Amazon. Its flagship Productivity Drink swaps traditional caffeine highs and sugar lows for a clinically-backed blend of Cognizin (citicoline), Rhodiola rosea, and Panax ginseng—ingredients championed for mental clarity—without offering a crash or comedown.

These results are just one strand in a larger cultural tapestry. The broader functional beverage trend—driven by flavorsome wellness claims spanning gut health, physical energy, and mental sharpness—has ballooned into a multibillion-dollar phenomenon. According to NielsenIQ, U.S. sales of functional drinks surged 54% from March 2020 to March 2024, reaching $9.2 billion and now accounting for 10% of all non-alcoholic beverage revenue.

Within this, nootropics are emerging as a strong subcategory. While global spend on all nootropics was about $3.7–$3.75 billion in 2022–2023, projections suggest it could swell to between $11 billion and $24 billion by 2030–2032, with compound annual growth rates spanning 8–15% depending on the source.

A narrower lens—focusing solely on nootropic and cognitive health drinks—suggests even faster growth: anticipated to rise at ~16.7% annually from 2025 through 2034. North America already leads the charge, accounting for over 40% of the market—an encouraging sign for U.K.-based Neutonic as it eyes expansion across the Atlantic.

The space is growing—and competitive. Neotonic challenges better-known functional nootropic drinks like Magic Mind, HVMN Rise, and Kin Euphorics. The latter, for example, reported over 200% year-over-year sales growth in 2024 and is now valued at over $46 million, with widespread retail expansion globally.

But amid this boom, experts and journalists urge caution. Products often rely on modest or preliminary science, and some claims outpace hard evidence. While nootropics like L-theanine often demonstrate subtle benefits—such as increased alpha-wave activity and calm alertness—they’re not miracle solutions.

Neutonic, in contrast, leans hard into transparency, openly citing clinical studies and highlighting trusted ingredients. Its clear positioning as a mindful alternative in a noisy, sugar-loaded market is resonating with a generation seeking sustainable productivity—not fleeting energy.

Investors are also taking notice. Contrarian Thinking’s Codie Sanchez, SaaS figure Dan Martell, fitness founders Mike Thurston and Jay Parker, Sweat app co-founder Kayla Itsines, and sports nutrition veteran Alan Barratt (who sold Grenade to Mondelez for £200 million in 2021) all signed on. Barratt noted, “I’ve known Chris and James since 2019… we’ve always shared a passion for health and fitness, entrepreneurship, and developing great products that consumers can trust.”

Fuelled by this backing, Neutonic plans to scale staff in 2025, deepen UK and U.S. retail presence, and add regional leadership for bold global launches.

“This investment provides the momentum needed to bring our ambitions for Neutonic to life,” said co-founder James Smith. “We’ve had a clear vision from the outset, and closing this funding round marks a significant milestone. We’re excited to expand into new markets and strengthen our presence in retail.”

Beyond market share and valuation, Neutonic’s ascent signals a broader cultural shift: consumers now expect more than just flavor or caffeine—they demand measurable benefits, ingredient integrity, and drinks that align with mental health and longevity. Whether it can continue to outsell, out‑scientify, and outlast its peers will define its pace in this booming beverage niche.