Functional Mushroom Brand Spacegoods Raises £2.5M

Spacegoods, a pioneering wellness brand that focuses on functional mushrooms and nootropics, secured a £2.5 million seed investment.

This round of funding was spearheaded by the FoodTech venture capital firm, Five Seasons Ventures, and saw contributions from Redrice Ventures, Slingshot Ventures, and G-FUND.

The capital injection is set to bolster Spacegoods' stature as the premier mushroom-based wellness brand in Europe. It aims to achieve this through geographical expansion, augmentation of its team, and the introduction of novel products. Prior to this, Spacegoods attracted £500,000 in a pre-seed round from angel investors.

Founded in April 2022 by the experienced e-commerce entrepreneur, Matthew Kelly, Spacegoods leverages the benefits of functional mushrooms and adaptogens to enhance focus, energy, and overall wellness.

Matthew Kelly, Founder of Spacegoods, said, “Spacegoods emerged as the solution to health and wellness challenges I experienced building previous companies. I explored the benefits of functional mushrooms and natural adaptogens for my own health, and this led to the creation of Spacegoods and our first product, Rainbow Dust. An all-in-one blend that helps focus and provides an energy boost similar to coffee but free from anxiety, jitters and crashes. We want to help more people to feel their best through the benefits of functional mushrooms.”

Kelly continued, “The functional mushroom space is relatively untapped in Europe - with this investment and the support of our investors, Spacegoods has a huge opportunity to be the European market leader.”

The adaptogenic mushroom market, valued at approximately $10.9 billion in 2022, is expected to grow 10% annually, reaching a projected value of $30 billion by 2032.

Saskia Hoebée, Principal at Five Seasons Ventures, commented: “Spacegoods is a first mover in a novel category of mushroom-based energy and supplements and has the vision to become a category leader in the space. The company operates at the crossroads of three trendy markets: supplements, functional drinks and coffee replacements, all in which high growth is expected in the coming years due to increased consumer demand for clean energy and broader wellness.”

Spacegoods delivers meticulously researched and cutting-edge wellness products designed to aid customers in stress and anxiety management while promoting overall well-being. The brand has experienced remarkable growth, primarily fuelled by direct-to-consumer sales via its online platform. It holds a commanding presence in the United Kingdom and crucial European markets, including the Netherlands and Germany.

In collaboration with nutritional experts and testing laboratories, the company has developed formulas that are highly effective. Its daytime blend, Rainbow Dust, is crafted to boost focus and energy, whereas the nighttime blend, Astro Dust, encourages relaxation and a restful sleep without inducing drowsiness.

Crafted in England, these blends are 100% natural and safe, combining adaptogenic mushrooms with nootropics like ashwagandha and lion's mane. Both are available in a chocolate flavour, vegan, cruelty-free, and designed for versatility, suitable for mixing with water or milk, or for incorporation into evening tea or a protein shake.

Robert Senior, Partner at Redrice Ventures, adds: “We are delighted to participate in the Spacegoods fundraise. We were drawn by the combination of a prescient thematic and an irrepressible founder. If anyone can scale a mushroom and nootropics wellness drink, Matt can.”

In addition to product development and research, the funding will support team expansion in London, with Spacegoods hiring across growth, marketing, and product teams.