Why We Invested in SnackMagic
Today, Craft Ventures is excited to announce that we are leading the $15 million Series A in SnackMagic.
SnackMagic enables companies to treat their employees, event attendees, customers, and friends (anywhere in the world) with snacks & beverages of their choice. They take the stress out of giving by allowing the recipient to choose their own snacks. Whether you’re sending SnackMagic to one person or 1,000, everyone gets to build their own unique box from a menu of 500 options. As SnackMagic says, and we agree, “It’s the un-screw-uppable gift everybody loves.”
What attracted us to SnackMagic was the clear viral growth, bottom-up adoption, and an unbeatable team.
Clear viral growth
SnackMagic was born in 2020 as a direct result of the global pandemic. Their previous business, Stadium, was an office lunch delivery service in New York City that was growing fast and profitably until people stopped going into the office. When the team decided to pivot to snacks for employees working remotely, they saw demand go through the roof. Microsoft, Toyota, and Okta began using SnackMagic for their virtual events. Spotify, Amazon, and Google for their employees and customers. Universities including Stanford, Harvard, and MIT use SnackMagic for student open houses, virtual school tours, and conferences.
In less than 8 months, SnackMagic went from $0 to $20 million in annualized revenue — while operating profitably.
Bottom-up adoption
When an organizer (the sender) sends SnackMagic, the recipient learns about the product and gets to experience it first-hand. Many of these recipients end up becoming senders themselves, leading to a powerful flywheel effect. It also helps that SnackMagic is often sent to large groups of people who are part of the same company or attending the same virtual event. Recipients often turn to Slack or other company channels to brag about their favorite new snacks. It turns out, snacking can get competitive.
Additionally, a lot of the growth has come from a bottom-up strategy, a theme that we love to invest in. We’ve seen employees from companies like Netflix, Toyota, and Cisco sign-up for SnackMagic organically, and after using it for a specific team or event, other employees and teams start to adopt it for their own use cases. This has led to large companies asking for enterprise features to help them manage SnackMagic across the entire organization.
Unbeatable team
Shaunak and the entire team have the entrepreneurial grit we look for in founders and a unique optimism and determination that drives the company forward. While COVID was sadly a death knell for so many companies, Shaunak immediately saw an opportunity. We believe this innate optimism will serve the company well as it expands into more categories and larger markets.
SnackMagic is not just an incredible COVID-comeback story. It has become a platform for hundreds of emerging CPG brands to reach new customers during a challenging time.
We are excited for everyone to experience the magic in SnackMagic. Congratulations to Shaunak and the entire SnackMagic team. Welcome to the Craft family!
