Israeli startup Plantopia raises $9 million to make dairy proteins without cows
Backed by global dairy giant Schreiber Foods, the company is moving from research to commercial production with a plant-based technology designed to recreate milk proteins.
Israeli food-tech company Plantopia has raised $9 million in a funding round led by dairy producer Schreiber Foods and food investment firm Siddhi Capital, as it prepares to move from research and development into commercial production of plant-based dairy proteins.
The company said the funding will support the launch of its manufacturing facility at Kibbutz Sdot Yam, which is expected to begin operations in the third quarter of this year.
Plantopia develops dairy proteins through molecular farming, a technology that uses plants to produce complex proteins traditionally derived from animals. The company's first product is casein, the main protein responsible for the structure and functionality of cheese.
Plantopia says its technology enables the production of casein that is identical in composition to cow's milk casein and is the first platform to successfully produce all four major casein subtypes - αs1, αs2, β and κ.
The company aims to enable food manufacturers to produce plant-based dairy products, including mozzarella, with characteristics similar to conventional dairy products, while being lactose-free and produced without livestock.
The round included participation from Israeli investors. With the latest financing, Plantopia has raised more than $16 million since it was founded.
Plantopia's funding comes as demand for dairy proteins increases, driven partly by changes in consumer behavior and the growing use of GLP-1 weight-loss medications.
According to the company, approximately 12% of the U.S. population currently uses weight-management drugs. Since these treatments can lead to muscle loss, physicians and nutritionists have increasingly emphasized higher protein consumption.
Plantopia said dairy protein consumption in the U.S. has increased by 83% over the past two years, while prices have risen by 250%. Whey protein, widely used in food manufacturing, has also experienced significant price increases in recent years.
Dairy proteins are used in a wide range of products, including nutritional beverages, cereals and other food products. However, traditional dairy production relies on livestock and agricultural resources, creating supply and environmental challenges.
The company noted that around 70% of the global population experiences some degree of lactose intolerance, increasing demand for alternative sources of dairy proteins.
Plantopia was founded in 2018 by Prof. Alexander Vainstein of the Hebrew University of Jerusalem, Tal Lutzky and Amir Tiroler, based on research developed at the university's Faculty of Agriculture.
The company's technology is based on indoor vertical farming of sprouts, which are engineered to produce dairy proteins. Plantopia says the process does not require livestock, agricultural land or sunlight, and can be deployed in different locations according to demand.
The company said its approach differs from fermentation-based alternative protein technologies, which require specialized production facilities and significant capital investment.
Plantopia is targeting the global casein market, which the company estimates is worth approximately $50 billion in North America alone.
The new funding marks a shift for Plantopia from technology development toward manufacturing.
"Having completed the development stages that have been our focus in recent years, we are now moving into commercial production," said CEO and co-founder Tal Lutzky.
