Gavan secures US$8M to commercialize plant-based fat substitute

ISRAEL – Israel-based food-tech start-up Gavan Technologies has secured US$8 million in A-round funding to accelerate the commercialization of its clean-label, plant-based fat solution, Fatrix.

As reported by the company, Fatrix functions as a one-to-one butter replacement, offering a healthier, sustainable alternative for the bakery and dairy sectors while reducing dependency on animal fats.

Gavan Technologies plans to utilize the funds to establish a pilot production facility in Europe, set to begin operations in April 2025.

According to the company, the facility will focus on producing Fatrix to meet increasing demand within European markets, particularly in bakery products like brioche and croissants, and dairy alternatives such as whipping creams, cream cheeses, and puddings.

The plant will serve as a strategic step toward scaling production and enhancing market accessibility for Gavan’s innovative fat solution.

Fatrix is crafted using an all-natural formula consisting of protein isolate, vegetable oil, and water, developed into a high-performance gel.

Notably, the product eliminates the need for emulsifiers, thickeners, or stabilizers, addressing the food industry’s increasing demand for clean-label ingredients.

Gavan’s patented technology enables the protein to act as a functional binder, creating a smooth and stable emulsion that delivers a neutral flavor and odor while maintaining stability under high heat and pressure.

The company highlighted that Fatrix offers a significant reduction in total fat and saturated fat content compared to conventional butter, aligning with healthier nutritional goals.

Itai Cohen, Gavan’s co-founder and CEO, emphasized the market-readiness of Fatrix, noting its versatility and potential to elevate food formulations.

“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,” Cohen stated.

He underscored Fatrix’s ability to deliver indulgent textures and sensations in food applications, matching butter’s mouthfeel without compromising on performance.

The investment round was led by MoreVC, a prominent Israeli venture capital firm, with additional participation from Lever VC, EIT Food, and DarkBoot Group.

According to Rony Patishi-Chillim of MoreVC, the industry’s need for plant-based fats that replicate the flavor and mouthfeel of butter remains high.

“Gavan’s unique fat creation platform is market-ready and has the potential to make a truly meaningful contribution to the fats and oils market,” Patishi-Chillim noted.

Fatrix is already approved for market use and does not require novel food regulatory approvals, a factor expected to expedite its adoption across European markets.

With growing demand for sustainable and functional food innovations, Gavan’s breakthrough product positions the company as a key player in addressing shifting consumer preferences and industry standards.