This week, founders of the VC-funded cookie startup Doughbies posted a Youtube viedo announcing they were shutting down. “Team Doughbies is moving on. Click here to learn more!”
The on-demand cookie delivery startup closed down operations after they failed to generate sufficient returns for investors. Interestingly, the brand was profitable — Doughbies made 36% gross margins and 12% net profits. However, investors didnt just want profit but a growth plan. Competing with the likes of Instacart and Uber Eats, Doughbies was finding it hard to expand into adjacent markets
The co-founder and CEO Daniel Conway told TechCrunch. “The reason we were able to succeed, at this level and thus far, is because we focused on unit economics and customer feedback (NPS scoring). That’s it.”