Odyssey, a mushroom-based functional energy drink maker, has raised an additional $6 million in equity investment, bringing its total funding since launching its first drink two years ago to $14 million.
Odyssey's products harness the health benefits of Lion's Mane and Cordyceps mushrooms to create a drink that combines energy boosting with 2,750 milligrams of mushrooms to provide cognitive clarity and focus.
A 2023 National Institutes of Health preliminary study shows that lion's mane, in particular, has a positive impact on cognitive function and mood in young people.
Scott Frohman, founder and CEO of Fort Lauderdale, Fla.-based Odyssey, first learned about the benefits of certain mushrooms from a friend who makes mushroom powder to mix into drinks. I knew.
“I started adding it to my coffee and noticed that everything became clearer,” he told TechCrunch. “The best part was that when I got to work, I realized I didn’t need a second cup of coffee. Plus, I felt more present and got to work right away.” is completed.”
But Frohman didn't like how the powder affected the taste and texture of the drink, preferring energy drink delivery, so he started working on Odyssey in 2021. Currently, the company has 11 SKUs, including flavors such as passion fruit orange. / Mango, Dragon Fruit Lemonade, Blackberry Lemon Twist.
The energy in the drink comes from a combination of L-theanine, ginseng, and green tea caffeine. There's also less added sugar to minimize the “jitteriness” and sugar crash that can be associated with traditional energy drinks, Frohman said. For those looking for an extra caffeine boost, the company recently launched the Odyssey 222 series, which contains 222 milligrams of caffeine in addition to mushrooms.
More than 5,000 stores carry Odyssey products, including Publix, CVS, GNC, Erewhon, 7-Eleven, Thrive Market, Wegmans and Bristol Farms. Frohman did not provide growth metrics, but said sales are increasing at a rate of three to five cans per week per SKU sold.
Growth in the functional beverage industry has accelerated in recent years as consumers increasingly seek healthier foods. The global functional soda category is expected to be worth $208 billion by 2027. This has led to the creation of new brands and led some venture capitalists to invest in this area.
During this time, brands such as healthier soda companies Poppi and Olipop have raised capital in 2022, and The Lil Company has raised $6.7 million for its line of functional instant teas in early 2023. I have procured it.
Odyssey also joins a long list of companies harnessing mushrooms and their roots, mycelium, to make everything from alternative proteins to leather-like materials to building materials. Companies like Infinite Roots also grow mushrooms for commercial purposes.
“The timing is definitely right and mycelium can captivate consumers with taste, nutrition, functionality, scalability, and impact-related benefits,” said PeakBridge CTO Maya Schushan Orgad. I said this while looking back on trends.
Meanwhile, Odyssey's new funding round includes strategic investor Richard Leber of Rocket Beverage Group, who joins an existing group of stakeholders contributing 50% of the total raised. .
Frohman plans to allocate capital to inventory to continue distribution and maintain sales and marketing jobs.
“We look at this as a whole movement, not just a product,” Frohman said.