Food-tech start-up Gavan Technologies has raised $8m in Series A funding to support commercialisation of its plant-based fat solution, Fatrix.
Gavan, founded in 2018 and headquartered in Israel, plans to use the funding to break into the European food market. The proceeds will support the establishment of a new pilot production facility in Europe and expand Gavan’s commercial presence in the region, with a focus on the bakery and dairy sectors.
MoreVC, an Israeli venture capital firm, led the funding round. The round also saw participation from agri-food investor Lever VC, EU-supported platform EIT Food, and DarkBoot Group, a private equity firm involved in Gavan’s incubation.
The new manufacturing site, planned to commence operations in April 2025, will feature a state-of-the-art production line for Gavan’s Fatrix solution. Fatrix is a multifunctional plant-based fat designed to act as a one-to-one replacement for butter in a range of bakery products and dairy alternatives.
Fatrix’s natural fat is composed of three simple ingredients: protein isolate, vegetable oil and water, formulated into a high-performance gel. Gavan’s patented technology enables the protein to perform as a binder for the protein and oil, resulting in a smooth, stable and flavourless emulsion. As it is not hydrogenated, it is also low in saturated fats and contains zero trans fats.
The solution can help food manufacturers to enhance products’ nutritional profile by reducing total fat and saturated fat content, while easing dependence on animal-derived fats and eliminating the need for additional emulsifiers. It is already approved for the market and does not require novel food regulatory approval.
Rony Patishi-Chillim, partner at lead investor MoreVC, said: “Fat plays an essential role in the creation of almost all foods. It gives depth to flavours, elevates textures and enhances the dining experience in general.”
“The food industry is in need of a plant-based fat that can provide the same indulgent flavour and mouthfeel as butter, while supporting sustainability and personal wellbeing. Gavan’s unique fat creation platform is market-ready and has the potential to make a truly meaningful contribution to the $253 billion fats and oils market.”
James Caffyn, partner at Lever VC, said that Gavan’s platform stands out due to its “unique ability to partner large corporates while achieving cost-efficient scaling and competitive unit economics”.
“These qualities position Fatrix as a game-changer in the move towards healthier and cleaner label foods,” he concluded.
Top image: © Nimrod Saunders
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