Odyssey, a startup specializing in mushroom-based functional energy beverages, has successfully raised an additional $6 million in equity investment. This latest funding brings the total investment in the company to $14 million since the launch of its first drink two years ago.
Key Takeaway
Odyssey secures $6 million in equity investment to further develop its mushroom-based functional energy beverages, tapping into the health benefits of Lion’s Mane and Cordyceps mushrooms.
Health Benefits of Mushroom-Based Products
Odyssey’s products harness the health benefits of Lion’s Mane and Cordyceps mushrooms to create a beverage that not only provides an energy boost but also contains 2,750 milligrams of mushrooms aimed at enhancing cognitive clarity and focus.
Positive Impact on Cognitive Function
A 2023 National Institutes of Health pilot study revealed that Lion’s Mane has the potential to positively impact cognitive function and mood in young adults, further highlighting the potential benefits of Odyssey’s products.
Founder’s Inspiration
Scott Frohman, the founder and CEO of Odyssey, was initially introduced to the benefits of certain mushrooms through a friend who was creating a mushroom powder for beverage mixing. After experiencing the cognitive benefits firsthand, Frohman decided to incorporate these mushrooms into an energy drink format, leading to the inception of Odyssey in 2021.
Product Range and Expansion
Odyssey currently offers 11 different SKUs, featuring flavors such as Passion Fruit Orange/Mango, Dragon Fruit Lemonade, and Blackberry Lemon Twist. The energy in these drinks is derived from a combination of L-Theanine, ginseng, and green tea caffeine, with minimal added sugar to reduce the “jitters” and sugar crashes commonly associated with traditional energy drinks.
Market Presence and Growth
With products available in over 5,000 stores, including major retailers like Publix, CVS, and 7-Eleven, Odyssey has been gaining traction in the market. While specific growth metrics were not disclosed, Frohman noted that the company is observing an increase in sales, with three to five cans per week per SKU being sold.
Expanding Functional Beverage Industry
The functional beverage industry has experienced rapid growth in recent years, driven by consumer demand for healthier alternatives. The global functional soda category is projected to reach a value of $208 billion by 2027, attracting new brands and investment from venture capitalists.
Strategic Investment and Future Plans
Richard Laver from Rocket Beverage Group, a strategic investor, has joined Odyssey’s latest funding round, alongside existing stakeholders. The company intends to utilize the capital to bolster inventory, sustain distribution, and expand its sales and marketing teams.
“We don’t see this as just a product, but a whole movement,” Frohman emphasized, highlighting the broader vision behind Odyssey’s endeavors.
