Qoa Raises Seed Funding to Disrupt the Chocolate Industry

QOA Pioneers Cocoa-Free Chocolate with $6 Million Seed Funding

Based in Munich, QOA is preparing to launch a groundbreaking chocolate product – one entirely devoid of cocoa.

This innovative venture has been bolstered by $6 million in seed funding. The investment round was spearheaded by Cherry Ventures, with contributions from Fifty Years, World Fund, Nucleus Capital, Trellis Road, Pioneer Fund, and Tet Ventures.

Founded by a Sibling Duo of Scientists

QOA was established earlier this year by Drs. Sara and Maximilian Marquart, a sister and brother team. Sara Marquart brings expertise as a food chemist specializing in flavor development. Max Marquart, a material scientist, is also a serial entrepreneur with prior ventures.

The global chocolate confectionery market reached a value exceeding $208 billion in 2020, with the U.S. representing its largest segment. However, the industry faces significant challenges, as approximately two-thirds of the world’s cocoa originates from West Africa – a region currently at risk.

Addressing Sustainability Concerns in Cocoa Production

Up to 50% of the cocoa supply is vulnerable due to disease and the impacts of climate change. Furthermore, cocoa farming is linked to both deforestation and the exploitation of child labor.

“The current methods of food production pose a threat to our food security,” explained Max Marquart to TechCrunch. “We are passionate about chocolate, but we recognized the inherent sustainability issues and sought a solution to ensure its future availability.”

Several companies, including California Cultured and Voyager Foods, are also working on cocoa-free chocolate alternatives, employing diverse methodologies. QOA, however, has developed a unique fermentation process.

QOA’s Fermentation Process and Product Development

This process utilizes natural byproducts generated during other food production activities as its foundational material. Proprietary microbacteria and flavor formation techniques are then employed to create a vegan product that replicates the texture and taste of traditional chocolate, without the use of artificial ingredients.

The company anticipates that its fermentation process will allow for scaled production by 2035, enabling pricing comparable to, or lower than, conventional chocolate. Marquart predicts a future chocolate market divided into two segments: premium, cocoa-based products and more accessible QOA alternatives.

Pilot Production and Future Expansion

QOA participated in the Y Combinator program this year and launched a product test kit offering nine different samples. The company expects to introduce its first product to the market in 2022.

The newly acquired funding will be allocated towards establishing a pilot production facility in Munich, complementing an existing facility in Switzerland, and expanding its team.

QOA is currently engaged in discussions with potential business-to-business clients and anticipates finalizing initial contracts shortly, according to Max Marquart.

“Following these initial agreements, we will pursue a Series A funding round to facilitate the construction of larger-scale production lines,” he stated.