Investments & Finance

Gavan Raises $8M to Introduce Clean Label “One-to-One” Butter Alternative in Europe

Israel’s Gavan, a food tech company focused on replacing animal fat with sustainable alternatives, announces it has raised $8 million in a Series A funding round.

The funds will be used to establish a new European pilot production facility for its flagship ingredient, Fatrix, a plant protein-based fat that replaces butter “one-to-one” in bakery and dairy alternatives. The site is scheduled to commence operations in April 2025, aiming to debut its “cutting-edge” fat solution in the European food market.

“This funding round opens the door for Gavan to enter the European food market”

The round was led by MoreVC, with participation from Lever VC, EIT Food, and DarkBoot Group, a private equity firm involved in Gavan’s incubation.

Co-founder and CEO Itai Cohen, shares, “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.”

Gavan's plant-based fat in cream cheese
© Nimrod Saunders

A clean-label butter alternative

Fatrix is described as a multifunctional plant-based fat that replicates the functionality of animal fat in food products, from brioches and croissants to cream cheeses. As explained by Gavan, it is an all-natural fat composed of protein isolate, vegetable oil, and water, formulated into a high-performance gel. It offers reduced saturated fats, contains no trans fats, and requires no novel food regulatory approval in Europe. Gavan says it is a “craveworthy, highly functional, and affordable” clean-label fat alternative.

Regarding functionalities, Fatrix has a neutral flavor, is odorless, highly versatile, and maintains its fat-holding capacity even under processing conditions of high heat and physical pressure.

Previous trials have demonstrated Fatrix’s capabilities to deliver “indulgent buttery sensations” often missing in plant-based pastries. In one trial, Fatrix successfully replaced butter in a soft and airy brioche, yielding a five-fold reduction in saturated fat. Beyond bakery products, it adds functional value to whipping creams, cooking creams, cream cheeses, and puddings without thickeners or stabilizers.

FaTRIX product
© Gavan

Market-ready, zero-waste solution

Gavan, founded in 2018, has developed a patented technology that enables proteins to act as optimal binders when used in fat emulsions. The method (not entirely revealed) delivers proteins with stability and functionality even under high heat and pressure. The platform is compatible with various legumes and uses entire plants to extract proteins, aligning with zero-waste and sustainability goals.

According to Gavan, its platform offers capital-efficient scaling and competitive unit economics, providing a compelling option for large corporate partnerships and advancing healthier, cleaner-label foods. The Israeli startup previously raised $2.5 million in seed funding to fill the market gap for sustainable, clean-label fat alternatives.

“Gavan’s platform stands out as the most compelling”

Rony Patishi-Chillim of MoreVC comments, “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.”

“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.”

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

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