Wellness startup Spacegoods has closed a £2.5m seed round to accelerate growth of its functional mushrooms and nootropics range.
Matthew Kelly launched the London-based brand in 2022 and has since attracted more than 75,000 customers.
The business makes all-in-one powder blends aimed at enhancing energy, relaxation, mood and general wellbeing, which are marketed as being similar to coffee but without crashes or jitters.
It will use the funding to expand its product portfolio and broaden its customer base, with the seed round led by food tech fund Five Seasons Ventures, alongside backing from Redrice Ventures, Slingshot Ventures and G Fund.
In addition to product development and research, the cash will support team expansion in London, with Spacegoods hiring across growth, marketing and product teams.
“The functional mushroom space is relatively untapped in Europe,” said Kelly. “With this investment, and the support of our investors, Spacegoods has a huge opportunity to be the European market leader.”
Produced in the UK, Spacegoods’ blends are claimed to be 100% natural and made with a combination of adaptogen mushrooms and nootropics, such as ashwagandha and lion’s mane.
Both its flagship Rainbow Dust day blend – which claims to enhance focus and energy – and the Astro Dust night blend – which promotes relaxation and restful sleep – come in a range of flavours.
The business, which also has a presence in Europe, said it had gained significant momentum since launching, with “an impressive growth rate” primarily through DTC sales online.
Five Seasons Ventures principal Saskia Hoebée added: “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.”
The adaptogenic mushroom market was valued at approximately $10.9bn in 2022 and is expected to grow 10% annually, reaching a projected value of $30bn by 2032, according to Global Market Insights data.
Spacegoods previously raised £500k in a pre-seed round from angel investors.
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