Celebrity-backed low-carb cereal brand Magic Spoon has raised $85 million in a Series B round of funding, the company announced Monday.
Along with the new funding round, which was led by HighPost Capital, Magic Spoon will expand from its direct-to-consumer model to make its products available at Target, according to a statement from the company.
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Magic Spoon is looking to disrupt the cereal industry, which is dominated by the likes of General Mills and Kellogg’s. It makes cereal that tastes like popular childrens’ breakfasts—think Fruit Loops or Reese’s Puffs—but is more macronutrient-friendly. A bowl of Magic Spoon cereal is low in carbohydrates and high in protein, while available in flavors like peanut butter, cocoa and blueberry muffin.
Magic Spoon background
The company launched in 2019 and has operated with a DTC model so far. But it plans to use the new funding to expand in retail. It will partner with both large and small retailers, the company said.
“Our focus on a direct-to-consumer model when we launched was key as we were growing and establishing a presence in a tired category, but we are beyond ready and excited to be able to reach even more consumers across the country through our brick-and-mortar retail launch,” Magic Spoon co-founder Greg Sewitz said in a statement.
In addition to HighPost Capital, Siddhi Capital, Coefficient Capital, Freshly co-founder Carter Comstock, and Constellation Capital participated in the Series B round. A slew of celebrities also participated in the round, including musical artists Nick Jonas, The Chainsmokers, Halsey, Nas and Shakira. Los Angeles Lakers player Russell Westbrook, comedian Amy Schumer, and football player Odell Beckham Jr. also participated.
Illustration: Dom Guzman
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