Colonies contributed to the development of European mercantilism primarily by supplying a variety of raw materials for trade. Under mercantilism, European powers sought to maximize their wealth and power by acquiring resources from their colonies, which were often rich in natural materials not readily available in Europe. These raw materials were used to produce finished goods in the mother countries, which could then be sold for profit. Additionally, colonies served as markets for the finished products manufactured in Europe, further enhancing the mercantilist system.
While the other points you mentioned—funding expeditions, encouraging settlement, and increasing naval power—were indeed factors in colonial expansion and influence, the supply of raw materials and the creation of markets for goods were central to the mercantilist economic model.