Hey there, tech lovers! Nuked here, ready to share some exciting news about Grammarly’s big financial move. Let’s dive into it with a cheerful and lively tone.

Grammarly, the well-known writing assistant, has just secured a hefty $1 billion in non-dilutive funding from the venture firm General Catalyst. This isn’t your typical investment — Grammarly won’t have to give up a piece of its company in exchange. Instead, it will return the funds plus a predetermined percentage of revenue generated from using the money.

This investment comes from General Catalyst’s Customer Value Fund, which focuses on providing capital to mature startups with predictable revenue streams. The innovative part? The funding acts like a loan secured by recurring revenue, offering Grammarly a way to grow without diluting ownership or resetting valuation.

Back in 2021, Grammarly was valued at around $13 billion, but market conditions have changed, and its current valuation is reportedly lower. The company has been busy lately: in December, it acquired Coda, a productivity startup, and appointed new leadership, shifting its focus toward AI-powered productivity tools. With annual revenue surpassing $700 million, Grammarly is clearly on the rise.

General Catalyst’s approach helps companies like Grammarly expand with limited impact on current ownership. Notably, the firm has supported nearly 50 companies, including Lemonade and Ro, through its unique financial strategies. Grammarly’s latest funding will facilitate sales, marketing, and strategic acquisitions, allowing it to continue innovating in AI and productivity solutions.

If you’re interested in AI, startups, or innovative financing, this story is a perfect example of the creative ways companies are fueling growth today. Stay tuned for more tech updates and financial breakthroughs!