Fungtional Labs Investor Overview | INN

Overview

Fungtional Labs is a number one supplier of cultivation provides and food-grade practical mushrooms in North America. The marketplace for food-grade practical mushrooms is estimated to be $69 billion in 2024, with development being pushed by eating places, wholesalers and complement producers searching for uncooked supplies. The excessive demand coupled with quick provide of mushrooms corresponding to lion’s mane and oysters offers a possibility for Fungtional Labs to seize market share on this giant and rising market.

The corporate’s vertically built-in enterprise mannequin, from cultivation and extraction to testing and end-product gross sales and distribution, offers strong differentiation over its friends. Fungtional Labs’ cultivation provides based mostly on its proprietary all-in-one rising media embody sterilized media, spawn genetics, all-in-one develop luggage, pellets and masters combine. The corporate’s long-term aim is to develop IP round practical and psychedelic mushroom extracts.

The corporate plans to implement its enterprise mannequin over three phases – Section 1 will concentrate on offering mycological provides and producing practical mushroom varieties; Section 2 will concentrate on processing completed merchandise, in addition to submitting a licensed seller utility to fabricate psilocybin-enhanced merchandise; and Section 3 will contain offering white labeling service of our merchandise and working as a licensed seller within the psychedelics market.

Section 1 – Purposeful Rising Centre

Beneath Section 1, the corporate goals to provide high-quality connoisseur and practical mushroom varieties, present mycological provides, and supply consulting providers. The corporate’s new 5,000 sq. ft. facility in Nevada compliments the transition of our Canada facility to direct achievement. The brand new facility will concentrate on the manufacturing of rising media and all-in-one develop luggage, to empower cultivators to develop their mushrooms. The rising media and all-in-one develop luggage are designed to be user-friendly and accessible to all ranges of growers, from novices to consultants.

Section 2 – Processing Completed Merchandise and Licensed Supplier Utility

Section 2 will concentrate on processing completed merchandise, in addition to, submitting a licensed seller utility to fabricate psilocybin-enhanced merchandise and increase the attain of its rising media and meals mushroom manufacturing. The corporate plans to spice up the manufacturing of its natural masters combine which has gained reputation amongst mushroom cultivators in North America. Concurrently, the plan is to construct an in-house gross sales crew that may improve the attain of its merchandise throughout North America. At the moment, the corporate is supplying rising media to 2 main cultivators within the US.

Section 3 – White Label Providers and Licensed Supplier

Section 3 will contain B2B white labelling providers, in addition to, working as a licensed seller within the psychedelics market. The aim is to develop IP round practical and psychedelic mushroom extracts. These psilocybin extracts and merchandise shall be GMP-grade, might be prescribed by North American medical doctors, and might be offered by way of pharmacies and clinics. The psychedelic market presents a big alternative for the corporate provided that the market is projected to develop at a CAGR of 16.3 % by 2027.

Firm Highlights

• Fungtional Labs is a vertically built-in enterprise mannequin that gives merchandise from cultivation to end-product shopper gross sales and distribution. This offers a bonus over friends by eliminating intermediaries.
• Fungtional Labs is a provider of cultivation and genetic merchandise for mushroom cultivators in North America, leveraging its proprietary all-in-one rising media. The corporate’s merchandise embody sterilized media, spawn genetics and all-in-one develop luggage.
• The corporate’s proprietary natural grasp combine rising media is in excessive demand amongst cultivators, offering greater yield at decrease prices.
• The corporate plans to implement its enterprise mannequin over three phases – Section 1 will concentrate on offering mycological provides and producing practical mushroom varieties; 2) Section 2 will concentrate on processing completed merchandise, in addition to concentrate on submitting a licensed seller utility to fabricate psilocybin-enhanced merchandise; and three) Section 3 will contain B2B white labelling providers, in addition to, working as a licensed seller within the psychedelics market.
• The corporate’s mycological division, which provides all-natural development formulation and extraction strategies, stands to profit from sector tailwinds and a big addressable market. The worldwide meals fungi market is anticipated to develop to $69 billion by 2024, whereas the medicinal mushroom extract market is anticipated to succeed in $18 billion by 2024.
• The corporate’s long-term aim is to develop IP round practical and psychedelic mushroom extracts. The corporate anticipates to offer completely different supply techniques to very evolving psychedelic market. The psychedelic market presents a big alternative for the corporate provided that the market is projected to develop at a CAGR of 16.3 % by 2027.

Income Streams

The vertically built-in enterprise mannequin ensures a number of income streams for Fungtional Labs:

1. Meals-grade connoisseur and practical mushrooms: Promoting food-grade practical mushrooms in North America. The rising demand for uncooked practical mushrooms in retail ought to profit Fungtional Labs.
2. Mycological provides: Promoting bulk substrates, rising medias, genetics, rising tools, which has generated vital demand amongst cultivators and business growers. The spray- and- develop mushroom kits are additionally a part of this income stream.
3. Worth-Added Merchandise: Using the creation of value-added merchandise corresponding to mushroom extracts, powders, or dietary supplements for well being and wellness functions.
4. Direct to Shopper: Makes use of on-line platforms corresponding to Amazon and Shopify to drive retail gross sales. Making end-user merchandise, mycological provides and mushroom spray and develop kits accessible to customers all through North America.
5. Wholesale Distribution: Set up wholesale partnerships with retailers, distributors, or different suppliers to distribute your merchandise in bulk portions.
6. White Label Providers: White label providers foster agility, scalability, and model extension, empowering companies to satisfy buyer wants successfully whereas enhancing their market presence and competitiveness.
7. IP Improvement: Specializing in IP growth round practical and psychedelic mushroom extracts. The rising demand from corporations for practical and psychedelic mushroom extracts for R&D functions is more likely to stay a serious tailwind. The corporate anticipates being the primary to provide these extracts that are presently unavailable available on the market.
8. Consulting Providers: Offering consulting providers for companies or people trying to begin or optimize their mushroom cultivation operations. Creating custom-made options for shoppers with particular cultivation wants, corresponding to large-scale manufacturing amenities or specialised mushroom strains.
9. Analysis and Improvement Contracts: Partnering with analysis establishments or corporations to develop new cultivation methods, merchandise, or strains by way of R&D contracts.
10. Commerce Reveals and Occasions: Generate income by exhibiting at trade commerce reveals, conferences, and occasions, showcasing your merchandise and experience.
11. Worldwide Growth: Discover alternatives to increase into worldwide markets by partnering with distributors or establishing abroad operations.

Administration Crew

Rico Gutierrez – CEO

Rico Gutierrez based Fungtional Labs and has been energetic within the mycology trade for a few years. Earlier than establishing Fungtional Labs, he was a thriving entrepreneur and the creator of a number of corporations throughout completely different sectors. Leveraging his experience and capabilities, he has offered mentorship and aided quite a few corporations of their enterprise growth endeavors.

Maria Gutierrez – Chief Monetary Officer

Maria Gutierrez brings years of expertise opening varied corporations. She’s extremely completed in working with executives to create efficient monetary methods, centered on reaching organizational objectives.

Rhea Gutierrez – Chief Operations Officer

Rhea Gutierrez has an intensive operational and entrepreneurial background, from proudly owning and working her small enterprise ventures to managing the each day operations of enormous companies.

Rhys Gutierrez – Chief Provide Chain Officer CSCO

Rhys Gutierrez oversees Fungtional Labs provide chain and stock. Guaranteeing the seamless move of supplies, assets, and merchandise from supply to shopper. Rhys is instrumental in optimizing each side of our provide chain to make sure effectivity, reliability, and sustainability.

Ryle Gutierrez – Chief Sustainability Officer CSO

Ryle Gutierrez oversees the corporate’s environmental administration selections. She creates insurance policies and procedures to enhance our firm’s effectivity. She analyzes present environmental impacts, designs strategies to enhance effectivity and leads sustainability groups. She additionally opinions native compliance tips and collaborates with constructing professionals to create sustainable designs.