Alice Mushrooms Lands Investment from L Catterton, Zac Efron, Pedro Pascal, Kevin Hart

Functional mushroom chocolate brand Alice Mushrooms has secured an undisclosed investment led by L Catterton. This round also saw participation from actors Zac Efron, Pedro Pascal, and Kevin Hart. They join existing supporters Jason Strauss, co-CEO of Tao Group, and Dr. Jennifer Ashton, former chief medical correspondent for ABC News and Alice’s medical adviser.

Alice Mushrooms launched in October 2022 with the mission of promoting functional mushrooms and making wellness delightful. Currently, the company offers three functional chocolates: Brainstorm ($29) for focus, Happy Ending ($29) for arousal, and Nightcap ($29) for sleep support. At its inception, the brand had already secured a small pre-seed investment from former Twitter CEO Dick Costolo.

“We made a point to not over-raise or overspend because we honestly had no idea what was actually going to happen once we put the product into the market. Then we launched, and everything changed,” said co-founder Lindsay Goodstein. “We were sold out only a few months into the business.”

After about two years in business, the brand was ready to raise more funds, and L Catterton was an ideal partner. “We bonded with the team at L Catterton right away. It was one of those things that felt like a puzzle, and it became a perfect fit because not only were they right out of the gate, aligned with our vision, saw the potential for the business and saw the potential for the category as a whole, but the team that we work with at L Catterton is led by two women,” said Alice co-founder Charlotte Cruze.

Whitney Casey, partner at L Catterton who led the deal, said, “Alice Mushrooms distinguishes itself with its innovative branding and unique product offerings that connect with a new generation of consumers. This investment aligns with our strategy to support forward-thinking companies in the VMS (vitamins, minerals, supplements) space. We look forward to partnering with Alice and supporting their mission to transform the wellness market.”

While L Catterton has focused on the wellness category, recently acquiring Naomi Watts’ menopause brand Stripes, Alice’s cap table includes several celebrities. “We built this really cool group of people who have incredible reach, who have amazing industry experience, who are super strategic, who understand food as medicine,” said Cruze. “This came about organically. As the brand grew, we got a lot of exciting attention.”

According to Goodstein, the funds raised will go toward retail expansion, product development, and team growth. “To hint a few things, we have new formulations [and] limited-edition flavor drops of our existing chocolates,” she said. “We’ll be using our chocolate as an ingredient in collaboration with some of our favorite brands coming up.”

Alice, which is available at Erewhon, Pop Up Grocer, and other specialty retailers, has previously secured several notable collaborations with companies like Fleur du Mal.

“We see it as very tactical and strategic, given that we are still creating a new category,” said Cruze. “Partnering with brands that have established reputations and market awareness helps make mushrooms more mainstream.”

The team hinted at a cameo on the “big screen” next spring. In the fourth quarter, the brand will also reveal a national grocer and department store retail launch. According to Goodstein, the brand was in about 200 retail doors at the start of 2024 and is expected to close the year with 1,000, though direct-to-consumer has remained the largest sales channel.

While the brand declined to share specific sales figures or the details of the raise, the team noted that the brand is on track to exceed eight figures this year and has experienced 175 percent year-over-year growth.