Phytolon, an Israeli biotech firm, has successfully secured additional funding to accelerate the commercial launch of its innovative natural food colorants. Created using fermentation technologies, these colors are aimed at disrupting the food and beverage industries.
The latest financing round included participation from Nextgen Nutrition Investment Partners (NGN), backed by Dunedain Ventures. James Cali and Andrew Towle, leading figures at NGN, bring a wealth of knowledge and expertise in the consumer packaged goods sector. Other key investors were EIT Food, an organization that fosters food systems innovation, and Phytolon's Chairman Steve Dubin, who has been an integral part of the company since its inception.
This investment comes on the heels of a robust year for Phytolon. Since completing its Round A funding in the summer of 2022, the company has made considerable strides toward commercial viability. Notably, Phytolon has inked a distribution agreement with DSM-Firmenich, vastly expanding its reach in the natural food color market. Additionally, the firm has formalized a large-scale manufacturing contract with a Contract Manufacturing Organization (CMO), ensuring a stable supply chain.
Phytolon has also initiated an in-house production facility on a pilot scale, strengthening its capacity to develop and upscale natural ingredients via fermentation processes. "Over the past two years, we've made such headway that we've earned increased confidence from key stakeholders in the global food and beverage sectors," said Halim Jubran, CEO of Phytolon. "This fresh round of investment is a testament to that progress, and we're thrilled to deepen our relationships with NGN, EIT Food, and Steve Dubin."
James Cali from NGN emphasized Phytolon's strategic position in the rapidly evolving natural food color industry. "We're confident that Phytolon’s unique, proprietary technology puts them at the forefront, especially as consumer and regulatory demands for 'free-from' and natural ingredients become more stringent. This is particularly significant considering emerging food color regulations in places like California," said Cali.
Matthias de Kock, Senior Investment Manager at EIT Food, expressed his organization’s continuing support for Phytolon: "We identified Phytolon's potential early on and are enthusiastic about the revolutionary changes they are bringing to natural food coloration. We look forward to their next stages of growth and innovation."