Odysseya mushroom-based functional energy drink company, has raised another $6 million in equity investment to give it $14 million in total funding since launching its first drink two years ago.
Odyssey products harness the health benefits of Lion’s Mane and Cordyceps mushrooms to produce a drink that combines an energy boost with 2,750 milligrams of mushrooms to provide cognitive clarity and focus.
Lion’s mane, in particular, has been shown to positively affect cognition and mood in young adults, according to a 2023 National Institutes of Health pilot study.
Scott Frohman, founder and CEO of Fort Lauderdale, Florida-based Odyssey, first learned about the benefits of certain mushrooms from a friend who was making a mushroom powder to mix into drinks.
“I started adding it to my coffee and realized everything was clearer,” he told TechCrunch. “The best part was when I got to work, I realized I didn’t need that second cup of coffee. On top of that, I just felt like I was more present and able to jump into my work.”
However, Frohman didn’t exactly like the way the powder affected the taste and texture of the drinks and preferred an energy drink, so he started working on Odyssey in 2021. Today, the company has 11 SKUs, including flavors like Passion Fruit Orange /Mango, Dragon Fruit Lemonade and Blackberry Lemon Twist.
The energy in the drinks comes from a combination of L-Theanine, ginseng and green tea caffeine. And there’s less added sugar to help minimize the “jitters” and sugar crashes typically associated with traditional energy drinks, Frohman said. For those who want even more of a caffeine boost, the company recently introduced the Odyssey 222 series with 222 milligrams of caffeine in addition to the mushrooms.
Over 5,000 stores including Publix, CVS, GNC, Erewhon, 7-Eleven, Thrive Market, Wegmans and Bristol Farms carry Odyssey products. Frohman did not provide growth metrics, but said the company is seeing sales increase in terms of three to five boxes per week per SKU sold.
Growth in the functional beverage industry has accelerated in recent years as consumers increasingly seek healthier foods. The global operating soda category is expected it will be valued at $208 billion by 2027. This has inspired the emergence of new brands and enticed some venture capitalists to invest in the industry.
During this period, we saw brands such as healthier soft drinks companies Poppi and Olipop raise funds in 2022, while The Ryl Company raised $6.7 million in early 2023 for its functional ready-to-drink tea range.
Odyssey also joins a long list of companies harnessing mushrooms and mycelium, the root of the mushroom, to produce everything from alternative proteins to leather-like materials to building materials. Companies like Infinite Roots even grow mushrooms for commercialization purposes.
“As the timing is undoubtedly right, mycelium can win over consumers with taste, nutrition, functional, scalable and impact-related benefits,” said PeakBridge CTO Maya Schushan Orgad. review of mycelium trends.
Meanwhile, Odyssey’s new funding round includes strategic investor Richard Laver from Rocket Beverage Group, who joins a group of existing stakeholders contributing 50% of the total amount raised.
Frohman plans to use the inventory capital to continue distribution and hiring in sales and marketing.
“We don’t just see it as a product, but as a whole movement,” Frohman said.
