Gavan nets US$8M to commercialize clean label plant-based fat substitute that functions like butter

Israel-based food-tech start-up Gavan Technologies has raised US$8 million in A-round funds. The company is poised to break into the European food market with its plant protein-based highly functional fat solution, Fatrix, which offers an alternative to animal-based fats.

According to the company, Fatrix is designed to help food manufacturers reach a superior nutriscore for their product by reducing total fat and especially saturated fat content. Fatrix as a fat source, reduces dependency on animal fats, offering a clean label solution and alternative to emulsifiers.

Gavan Technologies, which specializes in developing functional ingredients for the food industry, plans to expand with a new European-based pilot production facility which is slated to open in April 2025 and will target the bakery and dairy sectors. The site will feature a production line for Gavan’s alternative fat solution.

Alternative fat source

Fatrix is a multifunctional plant-based fat that can act as a one-to-one replacement for butter across a range of bakery products and dairy alternatives. 

It has an all-natural fat formula of just three 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, resulting 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, notes the company. 

“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,” says Itai Cohen, Gavan’s co-founder and CEO.

“It is neutral in flavor, odorless and highly versatile, making it possible to create any texture required. It maintains stability and water- and fat-holding capacity even under processing conditions of high heat and physical pressure.”

Indulgent dairy 

Fatrix can be used to create 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. 

Fatrix is already approved for market and does not require novel foods regulatory approval.

“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, of MoreVC, one of the investors. 

“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 fats and oils market.”

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.