Medicinal Mushroom Revolution: Finnish Company Raises the Bar for Quality and Science

Finnish startup challenges industry norms with homegrown fungi and cutting-edge research

In a riveting presentation at the Biohacker Summit in Helsinki on Tuesday, Eric Puro, CEO and Chairman of KAAPA Biotech, unveiled startling findings about the medicinal mushroom industry and revealed how his Finland-based company is working to transform it through rigorous science and transparent production methods.

"Our dream was to create the best, highest quality, absolutely excellent medicinal mushroom products that we could," Puro told a packed audience at the three-day biohacking conference, which has drawn health optimisation enthusiasts from across Europe.

Industry plagued by mislabelling and quality issues

Puro's journey into the world of medicinal fungi began with a troubling discovery. Research has shown that approximately 75% of reishi supplements in the US market don't actually contain reishi. More alarmingly, a recent Italian study found that out of 18 top-selling functional mushroom products on Italian Amazon, only six contained the species listed on their labels.

"There's obviously a problem," Puro stated, explaining that 92% of all mushrooms globally are produced in China, with most exported functional mushroom ingredients failing to meet the quality standards consumers expect.

The fundamental issue, according to Puro, is a clash of value systems. "In China, the values around functional mushrooms and medicinal mushrooms are based on traditional Chinese medicine, which has a very different value set than what's important to Western consumers," he explained.

Transparency, science and quality: The Finnish approach

KAAPA Biotech's response to these industry challenges has been to build their business on three guiding principles: transparency, scientific validation, and uncompromising quality.

"We grow all the mushrooms for our Kappa brand in Finland. We do all of our own extraction here in Finland as well," Puro emphasized. "Everything is EU organic."

The company's scientific innovations have focused on bioavailability – the proportion of beneficial compounds that can actually be absorbed by the body. Traditional tea-making methods yield about 5% bioavailability, while alcohol extraction techniques developed in China millennia ago boosted this to around 50%.

"Our company has pioneered and we were the first to use ultrasonication right in our extraction technology," Puro said, noting that this approach increases bioavailability to an impressive 92%.

Funding breakthrough research

Frustrated by the lack of commercial labs capable of testing for specific bioactive compounds in mushrooms, KAAPA Biotech took matters into their own hands, investing "a few hundred thousand euros" to develop new testing methods in collaboration with Turku Biosciences and the University of Turku.

The results, shared publicly for the first time at the summit, were dramatic. Their chaga mushroom products contained eight times more inotidiol (a key bioactive compound) than leading European competitors. Their lion's mane mushroom – prized for cognitive benefits – contained 3,200 times more of its crucial bioactive compounds than the second-place competitor.

The cognitive power of mushrooms

Lion's mane mushroom (Hericium erinaceus) has emerged as a star in the functional fungi world, with research showing it can improve cognition, mood, and brain structure. The compounds in lion's mane, called hericenones, can cross the blood-brain barrier and increase nerve growth factor (NGF) and brain-derived neurotrophic factor (BDNF), supporting neurogenesis – the growth of new brain cells.

"I think what this industry needed was a little bit of startup disruption," Puro reflected. "We needed the biohacking community to demand something better and to hold us accountable."

The future of functional fungi

The timing of KAAPA Biotech's quality revolution coincides with what industry insiders call the "shroom boom" – a surge in consumer interest in functional mushrooms, which have become the number one trending ingredient in the US market and number two in the UK.

"Now is the time for us to really take this and ensure that what we take in terms of functional mushrooms is the highest quality humanly possible," Puro concluded.

As the Biohacker Summit continues through Wednesday in Helsinki, KAAPA Biotech's evidence-based approach represents a significant shift in an industry traditionally dominated by marketing claims rather than scientific rigor – a change that may ultimately benefit consumers seeking genuine health benefits from these ancient natural remedies.

Frequently asked questions

How bad is mislabelling in the mushroom industry?

Eric Puro cited research showing that approximately 75% of reishi supplements in the US market do not actually contain reishi. A recent Italian study found that of 18 top-selling functional mushroom products on Italian Amazon, only six contained the species listed on their labels.

What is KAAPA Biotech's approach?

Transparency, scientific validation and uncompromising quality. Puro said the company grows all the mushrooms for its brand in Finland and does all of its own extraction there as well, with everything certified EU organic.

Why did the company fund its own laboratory methods?

Because commercial labs could not test for the specific bioactive compounds it cared about. KAAPA Biotech invested a few hundred thousand euros to develop new testing methods with Turku Biosciences and the University of Turku, and presented the results publicly for the first time at the summit.

About the event

This recap is part of the Biohacker Summit 2024 Helsinki series, recorded in Helsinki on 2 and 3 July 2024. Read the summary of the whole event or join the next edition, HOLOLIFE Summit 2026 Amsterdam, on 14 and 15 November 2026.