Israel-based biotech Phytolon announced the close of $23.6 million Series B financing to commercialize its natural food colors in the U.S.
The financing follows the FDA approval of Beetroot Red, the company's first natural colorant in its portfolio, produced via fermentation of baker's yeast. Phytolon’s platform utilizes two strains of baker’s yeast — one modified to secrete a water soluble yellow pigment and the other to secrete a water soluble purple pigment. The company can combine the two to produce a wide range of colors that are stable across a wide pH range.
The three-stage round was led by an undisclosed strategic investor, with participation from existing investors, including Millennium Foodtech, NextGen Nutrition, Colorcon Ventures and Yossi Ackerman.
The funding reflects growing market demand for sustainable natural alternatives to synthetic dyes. In January 2025, under pressure from the MAHA movement, the FDA revoked authorization of the cherry red additive, FD&C Red No. 3 (erythrosine), for use in food, dietary supplements and ingested drugs.