Gavan raises US$8 million to launch European facility for plant-based fat solution

Israeli food-tech start-up, Gavan Technologies, has secured US$8 million in A-round funding to advance its plant-based fat solution, Fatrix, and establish a European production facility. The investment round was led by MoreVC, with contributions from Lever VC, EIT Food, and DarkBoot Group. The funds will support the company’s entry into the European market, with a focus on the bakery and dairy sectors.

Gavan plans to open a pilot production facility in Europe by April 2025. The new site will feature a state-of-the-art production line dedicated to Fatrix, the company’s proprietary plant-based fat solution. This expansion aims to meet growing demand for sustainable, clean-label fat substitutes in European food manufacturing.

Itai Cohen, Gavan’s Co-founder & CEO, emphasized the significance of this milestone. “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.”

Fatrix is a plant-based fat designed to replace butter in a range of food applications. Composed of protein isolate, vegetable oil, and water, it is formulated into a high-performance gel that delivers functional and sensory qualities comparable to traditional animal fats. The patented technology allows the protein to bind water and oil, creating a stable, smooth emulsion with low saturated fat content and no trans fats.

Gavan’s innovation addresses the need for healthier and more sustainable fat sources, providing food manufacturers with a solution that reduces total and saturated fat content while maintaining taste and texture. Unlike some alternatives, Fatrix does not require novel foods approval and is ready for market use.

The solution is suitable for various bakery products, including croissants, brioche, and other pastries. It also enhances plant-based dairy products such as cream cheeses, whipping creams, and puddings by delivering the richness and mouthfeel typically associated with butter. Fatrix has a neutral flavor and odor, allowing it to be used in diverse recipes without altering the taste profile. It maintains performance under high heat and physical pressure, ensuring stability throughout cooking and baking processes. Additionally, it reduces the need for emulsifiers, stabilizers, and thickeners, resulting in simpler and cleaner ingredient lists.

Gavan’s platform is designed with scalability and sustainability in mind. The company’s zero-waste process can utilize a range of plant-based oils and legumes, allowing for tailored solutions to meet specific customer needs. This flexibility supports the broader goal of reducing reliance on animal-based fats while offering cost-effective alternatives.

The European market, known for its focus on sustainability and clean-label products, presents a significant opportunity for Gavan. Market research indicates that the global fats and oils market is valued at US$253 billion, with increasing interest in plant-based options. The commercialization of Fatrix represents a step forward in the development of plant-based ingredients that meet consumer demands for quality, functionality, and sustainability.

The funding round reflects strong investor confidence in Gavan’s potential. Rony Patishi-Chillim, Venture Partner at MoreVC, highlighted the market need for plant-based fat solutions. “The food industry is in need of a plant-based fat that can provide the same indulgent flavor and mouth-feel 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 fats and oils market.”

James Caffyn, Partner at Lever VC, added, “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.”

With the new European facility set to open in 2025, Gavan is well-positioned to support food manufacturers looking to adopt sustainable and healthier fat alternatives. The commercialization of Fatrix offers the potential to deliver high-quality, plant-based fats that meet the functional needs of the food industry while promoting sustainability and improved nutrition.