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Kids' snack brand Sunnie closing $1M seed

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May 17, 2024
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Illustration: Tiffany Herring/Axios

Sunnie, a Los Angeles-based children's snack brand, is closing on a $1 million seed, co-founder Katy Tucker tells Axios exclusively.

Why it matters: It will give the company enough runway for the next 12 months, she says.

Zoom in: The round is being co-led by Arkansas-based Fulcrum Collective and New York-based Swat Equity Partners, Tucker says.

What's next: Sunnie plans to raise another $2 million round early next year, which will get it to profitability, she adds.

  • "We never really wanted to raise a ton of money for the sake of raising it," Tucker says.

By the numbers: Sunnie ended 2023 with about $600,000 in revenue, but projects it will generate between $3 million and $4 million this year.

How it works: Sunnie's products consist of a pizza dipper, which includes grain-free crackers with sauce and sprinkled cheese, and a sunflower butter and jam dipper, as well as a hummus dipper.

  • They are sold in retailers such as Target, Whole Foods, Gelson's Market, Erewhon and Hungryroot.
  • This round's proceeds will be invested in trade spend to support grocery partners, marketing and working capital to fund R&D, she says.

Catch up quick: The food startup, which describes itself as providing a modern spin on Lunchables, was launched by Tucker and Lisette Howard in 2021.

  • The pair "loathed" packing lunches for their kids, but also didn't like the available options, such as Lunchables, which hasn't been disrupted in its 30 years, Tucker says.
  • They came up with products that eliminate refined sugar, seed oils and common allergens such as gluten and nuts.
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