Gavan Secures USD8M to Commercialize Cutting-Edge Plant-Based Fat

Start-up is establishing a new European facility for commercial production of its plant-based Fatrix^® fat

CAESAREA, Israel, Dec. 10, 2024 /PRNewswire/ -- FoodTech start-up Gavan Technologies, Ltd. announces it has raised USD8M in A-round funds. This fresh capital infusion will enable Gavan to break into the European food market with its cutting-edge plant protein-based fat solution, Fatrix^®.

The funding round was led by MoreVC, a prominent Israeli venture capital firm, with participation from Lever VC, a global leader in food and agri-tech investment; EIT Food, a European Union-supported platform for sustainable food innovations; and DarkBoot Group, a private equity firm involved in Gavan's incubation.

The proceeds will be used to establish a new pilot production facility in Europe and expand Gavan's commercial presence in Europe with focus on the bakery and dairy sectors. The site, planned to commence operations in April, 2025 will feature a state-of-the-art production line for Gavan's alternative fat solution.

Fatrix is designed to help food manufacturers reach a superior nutriscore for their product by reducing total fat and especially saturated fat content. Using Fatrix as a fat source reduces dependency on animal fats and awards exceptional sensory value as well as cleaning the label from undesired emulsifiers.

Like Butter

Fatrix is a multifunctional plant-based fat developed by the foodTech visionaries at Gavan and can act as a one-to-one replacement for butter in a comprehensive range of bakery products and dairy alternatives. Its all-natural fat formula 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 an optimal binder for the water and oil. This results in a smooth, stable, and flavorless emulsion. It also has a very low content of saturated fats and zero trans fats as it is not hydrogenated. Fatrix is already approved for market, and does not require novel foods regulatory approval.

"This funding round opens the door for Gavan to enter the European food market, where we can quickly make a positive impact. Our new, fully EU-certified facility is planned to go commercial as early as April next year," declares Itai Cohen, Gavan's co-founder and CEO.

Fatrix fills the market gap for a clean-label fat substitute that is craveworthy, highly functional, and affordable. "It is neutral in flavor, odorless, and highly versatile, making it possible to create any texture required," adds Cohen. "It maintains stability and water- and fat-holding capacity even under processing conditions of high heat and physical pressure."

Fatrix is a scalable and cost efficient fat solution that has demonstrated its capacity for creating indulgent buttery sensations across multiple bakery products like brioche and croissants. It adds functional value to dairy analogs such as whipping creams, cooking creams, cream cheeses, and puddings without the need for added thickeners or stabilizers. It also allows for cleaner, more consumer-friendly labels.

Gavan's zero-waste platform is compatible with a diverse range of plant-based oils and legumes allowing it to provide tailored solutions to meet specific customer preferences or application requirements.

"Fat plays an essential role in the creation of almost all foods. It gives depth to flavors, elevates textures, and enhances the dining experience in general," adds Rony Patishi-Chillim, Venture Partner of MoreVC. "The food industry is in need of a plant-based fat that can provide the same indulgent flavor and mouthfeel as butter, while supporting sustainability and personal well-being. Gavan's unique fat creation platform is market-ready and has the potential to make a truly meaningful contribution to the USD253B fats and oils market."

"As early investors in the alternative protein space, we've evaluated countless fat solutions aiming to replace butter or animal fats," says James Caffyn, Partner at Lever VC. "Gavan's platform stands out as the most compelling, offering a unique ability to partner with large corporates while achieving capital-efficient scaling and competitive unit economics. These qualities position Fatrix^® as a game-changer in the move towards healthier and cleaner-label foods."

About Gavan

Founded in 2018, Gavan Technologies, Ltd. specializes in the development of functional ingredients for the food industry. With a strong emphasis on sustainability, Gavan offers plant-based protein extraction technology as an environmentally friendly alternative to traditional animal-derived products. Its flagship product is a multi-texture fat analogue, carefully crafted for the bakery, meat, and dairy markets, offering notable sensorial and nutritional benefits that aligns with Gavan's responsible ingredient development ethos. By prioritizing innovation and environmental responsibility, Gavan actively contributes to shaping the future of the ingredient landscape. The company previously raised USD2.5M in seed funds.

Photo: https://mma.prnewswire.com/media/2577536/Gavan_Technologies_USD8M.jpg

SOURCE Gavan Technologies, Ltd.