This offering is being conducted on an expedited basis pursuant to the SEC’s temporary regulatory COVID-19 relief. Financial information certified by the principal executive officer of the issuer has been provided instead of financial statements reviewed by a public accountant that is independent of the issuer.

Highlights

Healthy, nutritionally dense dessert choice

  • Safe for pre-diabetics and diabetics
  • Fits into Keto, Low-Carb, and other lifestyle diets
  • Long shelf life is perfect for activities like camping, hiking, and cycling
  • Post-workout snack containing plant-based protein

Rapidly growing company with expanding product lines

  • 33% month-over-month growth
  • Online sales increasing due to stay-at-home behavior during pandemic
  • Well-positioned to tap into the growing movement towards healthy lifestyles

Delicious taste without the sugar and processed carbohydrates

  • Soft baked, chewy cookie – unlike other options in this category
  • Utilizes a unique combination of monk fruit and allulose for sweetness
  • No strange aftertaste typically found in other stevia or erythritol baked goods


Updates

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NextSeed
July 17, 2020

Chipmonk is Closing Early!

ChipMonk has decided to close its offering early, with a new closing date of July 24, 2020. If ChipMonk is under its maximum funding goal before that date, it will continue to accept investments until the new closing date. If you've invested in ChipMonk, you have the option to cancel your commitment until 11:59 pm CST on July 22, 2020.

Cheers,
The NextSeed Team

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Issuer
ChipMonk Inc.

Type of Offering
Regulation Crowdfunding

Offered By
NextSeed Securities, LLC

Offering Min

$75,000

Offering Max

$150,000

Min Individual Investment

$100

Raised to date

$150,000

Type of Securities Convertible Notes
Valuation Cap $3,500,000
Discount 20%
Annualized Interest Rate 4%
Maturity 36 months
Offering Size

$150,000

View the Issuer's SEC Form C filing

ChipMonk Baking is looking to raise up to $150,000 to expand the business. Proceeds from the NextSeed raise will be primarily used to move baking and packaging into a larger production facility. Remaining funds will be used to hire an operations manager, as working capital, and to support online marketing efforts.

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When ChipMonk Baking co-founder Jose Hernandez found himself battling an unexpected diagnosis of Type II diabetes, he set out to manage it with dietary changes. Because of his educational background in human biology, he knew he could reverse his blood sugar issues by avoiding processed carbs and sugar-laden treats. After just a few months, he was successful in improving his numbers, but it came at a cost - giving up all of the foods he once loved. Searching for safe alternatives, he quickly realized that most sugar-free products on the market were not only bland, but they contained some questionable ingredients.

Determined to bake something tasty and healthy, Jose began experimenting with cookies. With the help of fellow co-founder David Downing, ChipMonk Baking was born. ChipMonk Baking specializes in creating low-carb, sugar- and gluten-free baked goods for people who want a healthy alternative to traditional treats. Their products feature natural ingredients and are sweetened with a unique combination of monk fruit and allulose. The result is a low-carb cookie with the same texture as a traditional soft, chewy cookie - without the blood sugar spike.

Research shows that 1 out of 3 Americans are either pre-diabetic or diabetic. And, over 40% of Americans are actively trying to lose weight. More and more people are seeing the health benefits of low-carb or Keto lifestyles to manage their blood sugar or help them lose weight. These consumers are seeking food products that fit into their diets. Specialty food sales in the US totaled $148.7 billion in 2018 and continues to grow rapidly.

Many low-carb desserts on the market already are full of artificial ingredients and sweetened with either stevia or erythritol (a sugar alcohol), both of which can leave a strange aftertaste in baked goods. In fact, people who are seasoned in low-carb lifestyles often avoid products specifically with these ingredients because they don’t like the taste.

ChipMonk Baking has developed a sweetener that is natural, tastes like sugar, and doesn’t affect blood sugar. Using a combination of monk fruit and allulose, the result is a cookie that tastes remarkably like a regular sugar-laden cookie, but without the negative side effects. ChipMonk aims to produce the best tasting, healthy baked goods on the market.

With increased capacity at their new production facility, ChipMonk plans to explore other food and beverage products like breads, confections, condiments, and more.

Chipmonk's primary business model is a direct-to-consumer (D2C) model with its online shop, shipping ready-to-eat baked goods and dry mixes nationwide. To accommodate an increasing demand for its products - more recently fueled by the growing number of people staying at home and baking under quarantine conditions - Chipmonk is opening a new production facility. The team will use their new capacity to increase storage capacity for bulk ingredients, improve baking space, streamline packaging and shipping, and fulfill the influx of orders more efficiently. 

As business re-opening conditions allow, they will continue fulfilling their contracts with local Houston specialty shops, hotels, coffee shops, juice bars, nutrition shops, meal prep services, and natural grocers. This channel has significant room for growth. Longer term, ChipMonk plans to pursue wholesale contracts with regional and national grocery chains.

ChipMonk has achieved $45K in monthly sales and over $250K in total sales since inception.

ChipMonk Baking provides a variety of healthy baked goods, ranging from ready to eat cookies and brownies to dry mixes to bake at home. All of the products are sugar-free, low-carb, and are made with gluten-free ingredients. The secret to their great-tasting, soft cookies and brownies is the unique combination of monk fruit and allulose as sweeteners. Both are natural sweeteners but cannot be metabolized by the body - which means they have no impact on your blood sugar. Unlike traditional sugar alternatives like stevia and erythritol, monk fruit and allulose have no strange aftertaste.

All ChipMonk cookies are nut-based, utilizing almond flour and other whole, nutrient-dense ingredients like coconut oil, butter, flax seed, and eggs. Some varieties are dairy-free, like their vegan chocolate chip cookie and their and peanut butter cookie. To accommodate the needs of their growing fan base and to expand to meet the needs of additional dietary restrictions, ChipMonk has also recently launched a line of brownie bites made with sunflower seed flour. They currently offer these nut-free bites in four unique flavors: red velvet, banana chocolate chip, chocolate espresso, and cinnabun.

For those that like to bake at home, ChipMonk dry mixes make a perfect activity for adults and families alike. Mixes are available in 4 flavors and are easy to bake in around 12-15 minutes.

Other ChipMonk Baking items include:

  • Chocolate sunflower spread
  • AlluMonk sweetener blend by the bag, a 1:1 replacement for sugar when cooking or baking
  • Branded apparel

Company History

  • Feb 2019 - ChipMonk makes first in-person sale
  • Mar 2019 - Website launch (www.chipmonkbaking.com)
  • Mar 2019 - Attends first farmers market
  • May 2019 - Moves into commercial kitchen
  • May 2019 - Co-Founder Jose Hernandez goes full-time
  • Jun 2019 - First $10,000 in total sales
  • Jun 2019 - Recipe reformulation with the help of food scientists
  • Oct 2019 - Amazon launch
  • Oct 2019 - Co-Founder David Downing goes full-time
  • Feb 2020 - First $100,000 in total sales
  • Mar 2020 - Website migration to Shopify
  • Mar 2020 - Launch of the Sunflower Brownie Bites
  • June 2020 - First $250,000 in total sales
  • June 2020 - Sign lease on future production facility space


Team & Advisors

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Jose Hernandez
Co-Owner & President

Jose has spent the last 5+ years in the fitness and sales and marketing industries, utilizing his double degrees in Exercise Science and Human Biology from The University of Texas at Austin. He previously worked on the development team at VYPE, a media company focused on youth and high school sports. His lifelong enthusiasm for health and mindfulness makes him a strong proponent for ChipMonk’s mission.

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David Downing
Co-Owner and CEO

David brings his strong financial background to the leadership team at ChipMonk. He has over 10 years of industry experience including work with several Fortune 500 companies and venture capital firms. A passion for startups led him to launch ChipMonk. David holds a BA in Economics and History at Rice University, and an MS in Accounting from The University of Texas at Austin.

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Brigita Zabulionyte
Head Designer & Branding Strategist

Brigita brings 8+ years of graphic design and marketing experience with major brands including Facebook, Google, Bose, and Starbucks, as well as serving as the current head of branding and design for Dark Matter Coffee, a fast-growing coffee chain with over 8 locations in Chicago. Brigita holds a BA in Design & Visual Communications from Loyola University.

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Nathan Jarvis
Advisor & Food Scientist

Nathan is an assistant professor at the University of Houston specializing in food production and food safety. Before entering academia, he owned a catering and private chef operations business, as well as a gluten-free bakery. Nathan holds a BS in Hotel and Restaurant Management from the University of Houston and a Ph.D. in Food Science from the University of Arkansas.

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Mark Toon
Advisor

Mark is the founder of Work America Capital, an early-stage venture capital firm based in Houston. Prior to serving as CEO of KPMG Capital, he led KPMG’s Global Data and Analytics business and was also a co-founder and CEO of EquaTerra, Chairman of World 50, and a co-founder and CEO of SourceNet. Mark holds a BBA and MBA from Baylor University.

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Jonathan Horowitz
Advisor

Jonathan has 15+ years hospitality industry experience creating, owning, operating, building, and marketing restaurant and bar concepts. A board member of Texas Restaurant Association, he is the former CEO of Legacy Restaurants (Antone's, Original Ninfa's on Navigation) and co-founder of Lasco Enterprises (Tasting Room, Max's Wine Dive; $35M+ revenue). Jonathan holds a BA in Liberal Arts from Rice University and a JD from South Texas College of Law.

Bonus Rewards

Early Bird Reward
0 remaining
First 50 investors who invest $500 or more will receive:
  • ChipMonk T-shirt
Invest

$250+

  • Bundle Box of desserts
    6-cookie box, plus 2 brownie bite pouches
Invest

$1,000+

  • Bundle Box of desserts
    6-cookie box, plus 2 brownie bite pouches
  • Exclusive Investor Tour of the new facility
    Investor +1 guest
Invest

$2,000+

  • Bundle Box of desserts
    6-cookie box, plus 2 brownie bite pouches
  • Exclusive Investor Tour of the new facility
    Investor +1 guest
  • Baking lesson with the founders (Limit 20)
    First-come first-serve by time of investment
Invest

$5,000+

  • Bundle Box of desserts
    6-cookie box, plus 2 brownie bite pouches
  • Exclusive Investor Tour of the new facility
    Investor +1 guest
  • Baking lesson with the founders (Limit 20)
    First-come first-serve by time of investment
  • VIP discount card
    10% discount for life
Invest

$10,000+

  • Bundle Box of desserts
    6-cookie box, plus 2 brownie bite pouches
  • Exclusive Investor Tour of the new facility
    Investor +1 guest
  • Baking lesson with the founders (Limit 20)
    First-come first-serve by time of investment
  • VIP discount card
    10% discount for life
  • A day with the Monks (health and wellness experience)
    OR, be a part of a ChipMonk commercial

Bonus rewards are offered by the Issuer purely on a voluntary basis and do not influence the terms of the Offering. For the avoidance of doubt, the bonus rewards are not contractual conditions governed by the Note Purchase Agreement and are not enforceable under the Note Purchase Agreement.

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Brandyn
Love the product and I am so interested in investing but I am very new into investing into startups so i'm wondering what would be the process lets say if I invested 1,000. how long would it take to make my money back and what are factors that could ...
read more
ChipMonk Baking
ISSUER
Hi Brandyn – so glad to hear you are a fan of our products and thank you for your interest in investing. All investments into ChipMonk via our NextSeed campaign take the form of convertible notes. A convertible note is a type of security that is init ...
read more
ChipMonk Baking
ISSUER
I would recommend that you review the actual Convertible Promissory Note that our investors must agree to, available in the Documents section of our campaign page. If you have any further questions after that, please let us know.

Issuer Statement

The information contained on this campaign page (the "Campaign Information") is furnished solely by the Issuer to prospective investors in the investment opportunity described herein. All Campaign Information is intended to be a summary of the terms and information contained in the Disclosure Statement and the Note Purchase Agreement, and is fully qualified by reference to those documents. In the event any Campaign Information conflicts with the terms of the Disclosure Statement or Note Purchase Agreement, the terms of those documents will control. The Issuer has provided the Campaign Information for inclusion on the website located at www.nextseed.com, and in no way will the Campaign Information be deemed to have been created or provided by NextSeed Securities, LLC, NextSeed Services, LLC, or their affiliates.