SEATTLE — Atomo Coffee, Inc. raised $40 million in Series A funding to expand its bean-free coffee platform.
Founded in 2019, Atomo aims to reverse engineer coffee utilizing upcycled ingredients. Reports over the past several years have emphasized the effect of climate change on coffee growing regions around the globe. Issues like drought and frost as well as rising temperatures are making current coffee growing regions less suitable, prompting growers to deforest areas of virgin rainforest to access more tolerable climates for their plantations. Atomo claims its bean-free brew produces 93% less carbon emissions and requires 94% less water than conventional coffee.
Led by S2G Ventures, AgFunder and Horizons Ventures, the $40 million fundraise will support manufacturing scale and the official consumer launch of the company’s beverages, beginning with two ready-to-drink cold brews in classic black and ultra-smooth varieties. Available online direct-to-consumer, the products are brewed from plant-based ingredients and contain the same amount of caffeine consumers expect from traditional coffee, according to the company.
In a recent blind study conducted by National Food Labs, Atomo’s cold brew outranked competitive conventional cold brew products on preference 2:1. Panelists were unable to recognize that Atomo was made without coffee beans, said Ed Hoehn, head of growth at the Seattle-based startup.“Consumers are surprised when we tell them our coffee is made from upcycled plants grown in the USA and not from coffee beans,” he said. “We are not ‘bleeping and blooping atoms together.’ We are brewing coffee from sustainable upcycled plants.”