After raising $4.1 million in September 2020, Phytolon – an Israeli biotechnology startup developing fermentation-based natural food colors based on technology licensed from the Weizmann Institute of Science – has secured an $14.5 million in funding, the company announced Tuesday.
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Phytolon, a portfolio company of the Millennium Food-Tech R&D partnership, seeks to address the need for healthy, sustainable natural food-coloring alternatives to the azo/synthetic dyes prevalent in processed foods and beverages.
In contrast to the currently available natural food colorings, which are mainly derived from fruit and vegetables, Phytolon's technology produces betalain pigments ranging from yellow to purple through the fermentation of baker's yeast. Phytolon reports that its natural food colorings compete with other products on the market when it comes to performance and cost and can be applied to a variety of food categories, including alternative meat and dairy sectors.
Phytolon has already laid the groundwork to secure US and European regulatory clearance for its products.
Dr. Halim Jubran, co-founder and CEO of Phytolon, said the Series A investments from leading participants DSM Venturing, Cibus Fund, and Ginkgo Bioworks "open the door for broad penetration of our products in the global food industry."
"We are excited to have new investors who share our vision to create healthy, efficient, and sustainable food systems via biotechnology," Jubran said.
Some of Phytolon's current shareholders also participated in the Series A round: The Trendlines Group (the largest shareholder in the company), Arkin Holdings, Millennium Foodtech, Agriline (administered by Consensus Business Group), Stern Tech, and OpenValley/Yossi Ackerman.
Chairman of Phytolon's Board of Directors Steve Dubin said, "I believe this investment round and DSM's participation in Phytolon will accelerate the commercialization of Phytolon's proprietary palette of sustainable food colors that will provide important benefits to both food producers and consumers."
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