Spacegoods, a London-based direct-to-consumer (D2C) wellness brand specializing in mushrooms and nootropics, proudly announces the successful closure of its £2.5 million seed funding round. Spearheaded by serial entrepreneur Matthew Kelly, Spacegoods intends to utilize the investment to fuel a recruitment drive, supporting market expansion, and introducing new products to its diverse lineup.
The burgeoning market for adaptogenic mushrooms, valued at approximately $10.9 billion in 2022 and projected to grow at a rate of 10 percent annually, presents a lucrative opportunity for Spacegoods. The company aims to solidify its presence in the European marketplace and establish itself as a leader in mushroom-based wellness products.
Founder Matthew Kelly shared his insights on the company’s position in the European market: “Spacegoods emerged as the solution to health and wellness challenges I experienced building previous companies. I explored the benefits of functional mushrooms and natural adaptogens for my own health, leading to the creation of Spacegoods and our first product, Rainbow Dust.”
While champions like MUD/WTR and Dirtea dominate the US market, Spacegoods aims to capture the attention of conscious mushroom drinkers in Europe, making a mark with its unique offerings.
Launched in April 2022, Spacegoods has achieved significant growth through direct-to-consumer sales, holding a strong market position in the United Kingdom and key continental European markets such as the Netherlands and Germany.
Saskia Hoebeé, from Five Seasons Ventures, the lead investor in the seed round, expressed enthusiasm for Spacegoods: “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.”
The €2.9 million seed round was led by Five Seasons Ventures, with participation from Redrice Ventures, Slingshot Ventures, and G-FUND. The funding will empower Spacegoods to continue innovating and expanding its product offerings.
Matthew Kelly emphasized the untapped potential of the European functional mushroom space: “With this investment and the support of our investors, Spacegoods has a huge opportunity to be the European market leader.”
Spacegoods specializes in well-researched and innovative wellness products designed to help customers manage stress and anxiety while enhancing overall well-being. The company collaborates with nutritional experts and testing labs to create highly effective formulas, such as its flagship product, Rainbow Dust, an all-in-one blend that provides focus and energy without the side effects associated with traditional stimulants.
Produced in England, Spacegoods’ blends, including the night blend Astro Dust, are 100 percent natural, vegan, cruelty-free, and versatile for various consumption preferences. The funding will not only support product development and research but also facilitate team expansion in London, with hiring across growth, marketing, and product teams.
Robert Senior, Partner at Redrice Ventures, expressed excitement about participating in the funding round: “We are delighted to participate in the Spacegoods fundraise. We were drawn by the combination of a prescient thematic and an irrepressible founder. If anyone can scale a mushroom and nootropics wellness drink, Matt can.”