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Fungtional Labs: Integrated Supply Chain for Mushroom Cultivators in North America

Fungtional Labs is a leading provider of cultivation supplies and food-grade functional mushrooms in North America. The company’s vertically integrated business model provides robust differentiation over its peers. From cultivation and extraction to testing and end-product sales and distribution, the model ensures multiple revenue streams for Fungtional Labs.

Fungtional Labs’ cultivation supplies based on its proprietary all-in-one growing media include sterilized media, spawn genetics, all-in-one grow bags, pellets and masters mix. The company’s long-term goal is to develop IP around functional and psychedelic mushroom extracts.

​Revenue Streams

Some of the company’s revenue streams include selling food-grade gourmet and functional mushrooms in North America and bulk substrates, growing medias, genetics, growing equipment, which has generated significant demand among cultivators and commercial growers.

Company Highlights

Fungtional Labs is a vertically integrated business model that provides products from cultivation to end-product consumer sales and distribution. This provides an advantage over peers by eliminating intermediaries.Fungtional Labs is a supplier of cultivation and genetic products for mushroom cultivators in North America, leveraging its proprietary all-in-one growing media. The company’s products include sterilized media, spawn genetics and all-in-one grow bags.The company’s proprietary organic master mix growing media is in high demand among cultivators, providing higher yield at lower costs.The company plans to implement its business model over three phases – Phase 1 will focus on providing mycological supplies and producing functional mushroom varieties; 2) Phase 2 will focus on processing finished products, as well as focus on submitting a licensed dealer application to manufacture psilocybin-enhanced products; and 3) Phase 3 will involve B2B white labelling services, as well as, operating as a licensed dealer in the psychedelics market.The company’s mycological division, which supplies all-natural growth formulas and extraction methods, stands to benefit from sector tailwinds and a large addressable market. The global food fungi market is expected to grow to $69 billion by 2024, while the medicinal mushroom extract market is expected to reach $18 billion by 2024.The company’s long-term goal is to develop IP around functional and psychedelic mushroom extracts. The company anticipates to provide different delivery systems to very evolving psychedelic market. The psychedelic market presents a large opportunity for the company given that the market is projected to grow at a CAGR of 16.3 percent by 2027.

This Fungtional Labs profile is part of a paid investor education campaign.*

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