Lypid, creator of vegan fats reported to taste and behave like animal fats, today 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 contains 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.
“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,” said Dr. Manon Sarah Littek, lead investor and Founding Partner of Green Generation Fund. “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.”
Foodland Ventures, which focuses on AgriFood tech in APAC and North America, is among the investors that are excited about Lypid’s ability to transform the food industry. “Their technology creates great diversity for plant-based fats – It could be the vital ingredient for better-tasting plant-based meats or a healthier alternative for traditional meat-based products,” said Victor Chen, co-founder and CEO of Foodland Ventures. “We have already received positive responses for Lypid’s technology from large-scale producers in the APAC region.”
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. “We see fat as a critical catalyst to bring meat alternatives to the next level—tastier, healthier, and more sustainable,” said Lypid co-founder Jen-Yu Huang. “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.”