Mushrooms are having a bit of a time. Whether it's in the form of functional drinks, using mushroom roots to make alternative proteins, creating materials like leather, or the mushrooms themselves, fungi are finding an audience. I am.
Spacegoods is the latest startup to join the bandwagon. The London-based wellness brand utilizes functional mushrooms and nootropics to create a line of powder blends that touts boosting energy, relaxation, mood, and overall well-being. .
E-commerce entrepreneur Matthew Kelly founded a company called Neon Beach, which he grew to £10m, but closed in April 2022 after failing to survive supply chain issues during the global pandemic. The company was launched in . In the aftermath, Kelly told TechCrunch that he was depressed and that he just wasn't taking care of himself.
“I was depressed, gained weight and drank too much coffee,” Kelly said. “I started learning about functional mushrooms and trendy brands in America. There are a lot of people out there who have similar issues, like drinking too much coffee or anxiety, so I wanted to build on a lot of ingredients like that. And in the UK, all the brands on the shelves look the same, so we wanted to stand out with pink.”
Spacegoods' flagship product, 'Rainbow Dust', is similar to coffee, but is made to eliminate the discomfort and crash after drinking it. Rainbow Dust contains 80 milligrams of caffeine and comes in flavors such as chocolate, vanilla cinnamon, and chocolate orange.
It also contains “Astro Dust'', which is formulated for relaxation and sleep. These are intended to be mixed with water, milk, protein shakes or added to evening tea.
Matthew Kelly, founder of Space Goods. Image credits: space goods
The two formulas contain botanicals and mushrooms such as ashwagandha, cordyceps sinensis, and lion's mane mushroom. 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.
In the year since its launch, Spacegoods has attracted more than 75,000 customers. The company primarily sells directly to consumers through its website and Amazon, and sells in European markets such as the UK, Netherlands and Germany. It's also sold in 400 brick-and-mortar stores across the UK, including Holland & Barrett. Kelly said other retailers are also preparing for this year.
Today, Spacegoods announced a £2.5 million ($3.1 million) seed round led by Five Seasons Ventures with participation from Redrice Ventures, Slingshot Ventures and G-FUND. The company has raised a total of £3m, including a pre-seed round from angel investors.
Mr. Kelly plans to invest capital into hiring and accelerating growth. He predicts the company's revenue could triple by 2023. Spacegoods also plans to launch additional powder flavors and gummy products in the coming months.
In supporting Space Goods, Five Seasons Ventures President Saskia Hovey said in a statement that the company is “pioneering a new category of mushroom-based energy and supplements.”
“We operate at the intersection of three trending markets: supplements, functional beverages, and coffee substitutes, all driven by growing consumer demand for clean energy and broader wellness. We expect strong growth in the coming years,” said Hovey.