Spacegoods, a London-based wellness brand specialising in functional mushrooms and nootropics, announces it has secured £2.5M in a seed round led by FoodTech specialist venture capital firm Five Seasons Ventures, with participation from Redrice Ventures, Slingshot Ventures, and G-FUND.
Combining adaptogen mushrooms with nootropics such as ashwagandha and lion’s mane, the products are available in a chocolate flavour and are all vegan, cruelty-free, and can be enjoyed with water or milk or added to teas or protein shakes.
“If anyone can scale a mushroom and nootropics wellness drink, Matt can”
The company states It has gained significant momentum since its foundation in 2021, gaining impressive growth primarily through DTC sales, and says it has achieved a strong position in the UK as well as in the Netherlands and Germany. The capital will enable Spacegoods to solidify its position as the leading mushroom-based wellness brand in Europe through market expansion, team growth, and new product development. Additionally, funds will be allocated to support team expansion in London and hiring across growth, marketing, and product teams.
Launched in April 2022 by seasoned e-commerce entrepreneur Matthew Kelly, Spacegoods embraces the power of functional mushrooms and adaptogens to help with focus, energy, and overall wellness. Spacegoods says it offers well-researched and innovative wellness products that help customers manage stress and anxiety and enhance general well-being. The company collaborates with nutritional experts and testing labs to create highly effective formulas. Its day blend, Rainbow Dust, enhances focus and energy, while its night blend, Astro Dust, promotes relaxation and restful sleep without drowsiness.
“The functional mushroom space is relatively untapped in Europe”
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.”
He 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 functional mushrooms and nootropics markets are expected to continue growing as consumers seek out products that support health, wellness, and cognitive performance. Also known as smart drugs or cognitive enhancers, nootropics include a range of supplements, drugs, and other substances that purport to improve cognitive function. The market encompasses both synthetic and natural nootropics, including certain functional mushrooms like Lion’s Mane. The adaptogenic mushroom market, valued at approximately $10.9Bn in 2022, is expected to grow 10 percent annually, reaching a projected value of $30Bn by 2032.
First mover in a novel category
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”.
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.”
