Insomnia Cookies, a mainstay on college campuses for late night warm, gooey cookie delivery, has raised $3.93 million in equity-based financing, according to a Form D filing. This is the company’s first known venture capital funding to date. Insomnia did not immediately respond to a request for comment.
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But here’s what we do know: In 2018, Krispy Kreme Doughnut Corp. acquired a majority stake in the cookie chain, which some reports valuing Insomnia at $500 million. Insomnia was allowed to work as an independent company.
Insomnia was founded in a dorm room in 2003 by Seth Berkowitz, a student at the University of Pennsylvania. Three years later, it opened its first brick-and-mortar store in Syracuse, New York.
Mix in some food trucks, an app, and a goodbye to food trucks, and Insomnia has since grown to over 155 locations. It caters to both individuals and companies. In 2019, it expanded to new locations, like Brooklyn and Austin.
Beyond its gooey double chocolate chunk and limited edition red velvet cookies, Insomnia’s strength (and differentiation from a run of the mill bakery) comes from its late night delivery services. In fact, the company’s senior director of marketing, Megan Bruton, told CNBC that college campuses were “where the business started and with good reason.” The statement continued to say that late night delivery “is music to any college student’s ears after a long night of studying, or being out until the bars close.” In fact, my college campus has one too, and it made a regular appearance at our school newspaper meetings.
We’ll have more when Berkowitz gets back to me, but one thing is for sure: some investors have found Insomnia’s growth from dorm room idea to hundreds of locations as a craving definitely worth cashing in on. Bring on the dough.
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