Gavan Technologies, a food tech startup, has secured $8 million in a Series A funding round led by Israel’s MoreVC. Other participants in the round include Lever VC, EIT Food, and DarkBoot Group. The funds will be used to establish a new pilot production facility in Europe, focusing on expanding Gavan’s commercial presence in the bakery and dairy sectors.
The site is planned to commence operations in April 2025 and will feature a state-of-the-art production line for Gavan’s alternative fat solution, Fatrix. Fatrix is a plant protein-based fat solution designed to help food manufacturers achieve superior nutritional scores by reducing total fat, especially saturated fat, content. It is composed of three ingredients: protein isolate, vegetable oil, and water, formulated into a high-performance gel.
Gavan’s patented technology enables the protein to optimally bind water and oil, resulting in a smooth, stable, and flavorless emulsion. Fatrix has a very low content of saturated fats and contains zero trans fats as it is not hydrogenated. It is market-ready and does not require novel foods regulatory approval.
Gavan’s European production facility plans
“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,” said Itai Cohen, Gavan’s co-founder and CEO.
Gavan is initially focusing on bakery and dairy applications, given Fatrix’s ability to serve as a one-to-one replacement for butter. The company is also exploring how Fatrix can improve the nutritional profile of animal- and plant-based hybrid meats and dairy products. Despite challenges in the plant-based category post-pandemic, consumer demand for healthier and more sustainable food remains strong.
Plant-based dairy alternatives sales hit $16.8 million for the year ending August 10, 2024. Cohen noted, “When you look at consumer preferences, they want healthier food. They want it sustainable.
They want to pay less for it. They want it to have a better impact on the planet, and that is something that is not going to change anytime soon.”
This sustained consumer interest is expected to drive continued demand for plant-based products moving forward, as Gavan Technologies scales its business and brings Fatrix to market.
