Kearney-based gourmet cocoa brand Cup of Coa recently raised a $750,000 seed round. Founder and CEO Jasmin McGinnis said the investment will help the company further expand its team, operations and reach — all with the goal of preparing for large-scale growth. 

McGinnis said the lead investor in the round was Invest Nebraska. She added that Cup of Coa secured funding from Nebraska Angels, Nelnet and private investors — “including some of our own customers who believe strongly in the brand.”

“To see our company recognized at this stage validates the long hours, the setbacks and the quiet moments of determination that brought us here,” McGinnis said in an email to SPN. “More than anything, it shows that what started in a small Nebraska coffee shop can grow into something much larger — that there is room for big dreams and bold innovation, even in categories that are often overlooked like cocoa.”

Innovation from Cup of Coa came in the form of the company’s core hot cocoa product and its milk-based, “add-water-only” formula that makes preparation simple for both consumers and businesses interested in adding it to their menus. 

McGinnis said the brand is now sold in 34 states and five countries. She credited this achievement to a combination of participating in trade shows, forming wholesale partnerships and fulfilling direct-to-consumer sales. She also credited simply building her company within the entrepreneurial ecosystem in Nebraska.

McGinnis pointed to the state’s affordable cost of living and culture of “Midwest nice” that has led to resources, mentors and networks to lean on, such as NMotion powered by gener8tor. Cup of Coa was in the NMotion Accelerator Fall 2024 cohort. 

“People often think they need to leave the Midwest to grow, but Nebraska offers a unique blend of community, support and grit that has been instrumental to our success,” McGinnis said. 

Takeaways from the Cup of Coa team and investors

Beyond planning to use the latest round of funding to offer new products and assist in marketing, production and distribution efforts, McGinnis said the investment will help Cup of Coa expand its leadership and sales teams. 

A recent hire was Scott Kintner, former program manager at the gener8tor Great Lakes Innovation Accelerator. Kintner previously served as program manager for NMotion, working with startup accelerator cohorts including the one in which McGinnis participated. He is currently serving as director of growth for Cup of Coa. 

Kintner, who collaborated with 21 companies during his time with gener8tor, said McGinnis’ commitment, values and leadership as a founder stood out to him. These qualities, as well as his own passion for coffee shops, helped convince him to go against his usual risk-averse nature and join the company.

“I got to know her throughout the program, and then seeing everything she was able to do post-program, she really did all the stuff that we talked about doing,” Kintner said. “It made me very confident in her ability to lead and made me no doubt want to come on board.”

Invest Nebraska Investment Manager Shelby Strattan similarly praised McGinnis on her character, emphasizing the experience and relationships she has formed throughout her career. Strattan said McGinnis’ background has fostered additional scaling opportunities and mitigated concerns from Invest Nebraska over current market uncertainties such as tariffs and ingredient imports. 

Strattan said Invest Nebraska also saw potential in modern-day consumer trends within the beverage industry, using the example of PepsiCo’s recent $1.95 billion acquisition of the prebiotic soda brand poppi. 

“The beverage industry right now is hot,” Strattan said. “Jasmin is combining the lens of massive distribution (like) Swiss Miss and Nestlé, but pairing it with the quality and luxury (of) these more localized hot chocolate product offerings.”

While still smaller than these more established competitors, McGinnis said this has actually been an advantage.

“It allows you to be nimble, creative and deeply connected to your customer in ways that big corporations can’t be,” McGinnis said. “Don’t try to mimic their playbook. Instead, lean into your unique story, your authenticity and the gaps they overlook.”