Mushrooms take a moment. Whether it’s in the form of a functional drink, using the mushroom root to produce alternative proteins, creating leather-like materials, or just the mushroom itself, fungi are gaining traction.
Space goods is the latest startup to join this craze. The London-based wellness brand harnesses functional mushrooms and nootropically creating a line of powder blends that it touts boost energy, relaxation, mood and general well-being.
E-commerce entrepreneur Matthew Kelly founded the company in April 2022 after building a company called Neon Beach which grew to £10m but could not withstand supply chain problems during the global pandemic. Afterwards, Kelly told TechCrunch that he was depressed and just wasn’t taking care of himself.
“I was depressed, gaining weight and drinking a lot of coffee,” Kelly said. “I started learning about functional mushrooms and trendy brands in America. A lot of people have similar issues with too much coffee and stress, so I wanted to stack a lot of these ingredients. And in the UK, the brands all look the same on the shelf, so I wanted to stand out with something pink.”
Spacegoods’ flagship product, called “Rainbow Dust,” was created to look like coffee, but without the after-drink jitters and crashes. Rainbow Dust has 80 milligrams of caffeine and comes in flavors like chocolate, vanilla cinnamon, and chocolate orange.
It also has an ‘Astro Dust’ product designed for relaxation and sleep. They are meant to be mixed with water, milk, protein shakes or added to evening tea.
Spacegoods founder Matthew Kelly. Image Credits: Space goods
The two formulations include plants and mushrooms, including ashwagandha and Cordyceps and Lion’s Mane mushrooms. 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.
In the year since launch, Spacegoods has attracted more than 75,000 customers. The company is mainly direct-to-consumer, through its website and Amazon, and sells in the UK and European markets such as the Netherlands and Germany. It is also available in 400 UK bricks and mortar stores, including Holland & Barrett. Other retailers are in the works for this year, Kelly said.
Today, Spacegoods announced a £2.5 million ($3.1 million) round led by Five Seasons Ventures, with participation from Redrice Ventures, Slingshot Ventures and G-FUND. In total, the company has raised £3m, which includes a pre-seed round from angel investors.
Kelly plans to invest the capital in hiring and accelerating growth. He predicts that the company will be able to grow revenue by 3x what it did in 2023. Spacegoods is also launching additional powder flavors and a sticky product in the coming months.
Backing Spacegoods, Saskia Hoebée, director of Five Seasons Ventures, said in a statement that the company is “an early mover in the new mushroom-based energy and supplement category.”
“The company operates at the crossroads of three modern markets: supplements, functional drinks and coffee substitutes, all of which are expected to see high growth in the coming years due to increased consumer demand for clean energy and broader wellness,” said Hoebée.
