Overview
Fungtional Labs is a leading provider of cultivation supplies and food-grade functional mushrooms in North America. The market for food-grade functional mushrooms is estimated to be $69 billion in 2024, with growth being driven by restaurants, wholesalers and supplement manufacturers seeking raw materials. The high demand coupled with short supply of mushrooms such as lion’s mane and oysters provides an opportunity for Fungtional Labs to capture market share in this large and growing market.The company’s vertically integrated business model, from cultivation and extraction to testing and end-product sales and distribution, provides robust differentiation over its peers. 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.The company plans to implement its business model over three phases – Phase 1 will focus on providing mycological supplies and producing functional mushroom varieties; Phase 2 will focus on processing finished products, as well as submitting a licensed dealer application to manufacture psilocybin-enhanced products; and Phase 3 will involve providing white labeling service of our products and operating as a licensed dealer in the psychedelics market.Phase 1 – Functional Growing CentreUnder Phase 1, the company aims to produce high-quality gourmet and functional mushroom varieties, provide mycological supplies, and offer consulting services. The company’s new 5,000 sq. ft. facility in Nevada compliments the transition of our Canada facility to direct fulfillment. The new facility will focus on the production of growing media and all-in-one grow bags, to empower cultivators to grow their mushrooms. The growing media and all-in-one grow bags are designed to be user-friendly and accessible to all levels of growers, from beginners to experts.Phase 2 – Processing Finished Products and Licensed Dealer ApplicationPhase 2 will focus on processing finished products, as well as, submitting a licensed dealer application to manufacture psilocybin-enhanced products and expand the reach of its growing media and food mushroom production. The company plans to boost the production of its organic masters mix which has gained popularity among mushroom cultivators in North America. Concurrently, the plan is to build an in-house sales team that can increase the reach of its products across North America. Currently, the company is supplying growing media to two major cultivators in the US.Phase 3 – White Label Services and Licensed DealerPhase 3 will involve B2B white labelling services, as well as, operating as a licensed dealer in the psychedelics market. The goal is to develop IP around functional and psychedelic mushroom extracts. These psilocybin extracts and products will be GMP-grade, can be prescribed by North American doctors, and can be sold through pharmacies and clinics. 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.
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.
Revenue Streams
The vertically integrated business model ensures multiple revenue streams for Fungtional Labs:Food-grade gourmet and functional mushrooms: Selling food-grade functional mushrooms in North America. The increasing demand for raw functional mushrooms in retail should benefit Fungtional Labs.Mycological supplies: Selling bulk substrates, growing medias, genetics, growing equipment, which has generated significant demand among cultivators and commercial growers. The spray- and- grow mushroom kits are also part of this revenue stream.Value-Added Products: Utilizing the creation of value-added products such as mushroom extracts, powders, or supplements for health and wellness purposes.Direct to Consumer: Utilizes online platforms such as Amazon and Shopify to drive retail sales. Making end-user products, mycological supplies and mushroom spray and grow kits accessible to consumers throughout North America. Wholesale Distribution: Establish wholesale partnerships with retailers, distributors, or other suppliers to distribute your products in bulk quantities.White Label Services: White label services foster agility, scalability, and brand extension, empowering businesses to meet customer needs effectively while enhancing their market presence and competitiveness.IP Development: Focusing on IP development around functional and psychedelic mushroom extracts. The growing demand from companies for functional and psychedelic mushroom extracts for R&D purposes is likely to remain a major tailwind. The company anticipates being the first to supply these extracts which are currently unavailable on the market.Consulting Services: Providing consulting services for businesses or individuals looking to start or optimize their mushroom cultivation operations. Developing customized solutions for clients with specific cultivation needs, such as large-scale production facilities or specialized mushroom strains.Research and Development Contracts: Partnering with research institutions or companies to develop new cultivation techniques, products, or strains through R&D contracts.Trade Shows and Events: Generate revenue by exhibiting at industry trade shows, conferences, and events, showcasing your products and expertise.International Expansion: Explore opportunities to expand into international markets by partnering with distributors or establishing overseas operations.
Management Team
Rico Gutierrez – CEORico Gutierrez founded Fungtional Labs and has been active in the mycology industry for many years. Before establishing Fungtional Labs, he was a thriving entrepreneur and the creator of multiple companies across different sectors. Leveraging his expertise and capabilities, he has provided mentorship and aided numerous companies in their business development endeavors.Maria Gutierrez – Chief Financial OfficerMaria Gutierrez brings years of experience opening various companies. She’s highly accomplished in working with executives to create effective financial strategies, focused on achieving organizational goals.Rhea Gutierrez – Chief Operations OfficerRhea Gutierrez has an extensive operational and entrepreneurial background, from owning and operating her small business ventures to managing the daily operations of large corporations.Rhys Gutierrez – Chief Supply Chain Officer CSCORhys Gutierrez oversees Fungtional Labs supply chain and inventory. Ensuring the seamless flow of materials, resources, and products from source to consumer. Rhys is instrumental in optimizing every aspect of our supply chain to ensure efficiency, reliability, and sustainability.Ryle Gutierrez – Chief Sustainability Officer CSORyle Gutierrez oversees the company’s environmental management decisions. She creates policies and procedures to improve our company’s efficiency. She analyzes current environmental impacts, designs methods to improve efficiency and leads sustainability teams. She also reviews local compliance guidelines and collaborates with building professionals to create sustainable designs.
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