Plant-based food startup Lypid enters B2B vegan-fat market with $4m seed round to commercialize rich, juicy PhytoFat
Lypid, creator of vegan fats reported to taste and behave like animal fats, announced it has raised a $4 million seed round led by Green Generation Fund with additional support from Big Idea Ventures, Foodland Ventures, SOSV's IndieBio, and others. Lypid's founders, Taiwanese Ph.D.s who met at Cornell University, Jen-Yu Huang and Michelle Lee indicate the funds will be used to bring their product to market in 2022, after which they plan to expand further in the U.S., Europe, and Asia.
Processed using the company's novel formulation and the microencapsulation method, Lypid's product, PhytoFat, maintains its animal fat-like qualities when cooked above 329 degrees Fahrenheit (165 Celsius). The company says its formulation and technique produce vegan fats with juicy animal-like textures and melting behaviors, extended flavor delivery, and a better nutritional profile than other plant-based fats. With no artificial additives, no hydrogenation, and containing zero trans fats, Lypid looks to offer PhytoFat as a healthier alternative to the current plant-based protein market, which relies heavily on palm oil and coconut oil for ingredients.
Manon Sarah Littek, Founding Partner, Green Generation Fund: "Not only since the pandemic, the market for plant-based meat has exploded. But plant-based meat has a long way to go and that's because it's missing a convincing equivalent to animal fat. Our team is looking forward to supporting Michelle and Jen-Yu in launching their product to market and building an outstanding ingredient provider in order to contribute to a more environmentally sustainable future."
As participants in the SOSV life sciences program IndieBio in 2021, together the Lypid founders transitioned from the mindset of a scientist to that of an entrepreneur to form their B2B go-to-market strategy.
Jen-Yu Huang, Co-founder, Lypid: "We see fat as a critical catalyst to bring meat alternatives to the next level, tastier, healthier, and more sustainable. Now our goal is to bring production of PhytoFat to the industrial level. We are aiming to produce more than 10 tons per year for each production line."