Blue Tree Technologies Secures $2.26 Million in Funding

Israeli food technology startup Blue Tree Technologies has successfully raised $2.26 million in a funding round led by OurCrowd, with additional investment from Sucden Ventures, the venture capital arm of French company Group Sucres et Denrées. This funding comes at a critical time for the company, which has faced significant challenges due to recent regional unrest.

Blue Tree Technologies, founded in 2020 by Didier Toubia, co-founder of Aleph Farms, specializes in sugar reduction technology for beverages. The company’s patented process utilizes advanced separation techniques to selectively remove sugar molecules from juices, milk, and beer while preserving taste, texture, and essential nutrients. This technology is designed for seamless integration into existing production lines and includes comprehensive design, integration, and maintenance services.

Despite the adverse circumstances, including the closure of its Kiryat Shmona facility due to missile strikes, Blue Tree has demonstrated resilience. Michael Gordon, CEO of Blue Tree, emphasized the company’s commitment to innovation and regional development. The company has managed to secure a new facility and continue its operations with a reduced team, highlighting its dedication to both product development and fundraising efforts.

Blue Tree has recently achieved self-affirmed FDA food safe status for its technology, meeting U.S. Food and Drug Administration standards for food and food contact materials. The startup has also advanced its product development, including a partnership with Israeli juice manufacturer Priniv. The company is now preparing for the market entry of a sugar-reduced orange juice, pending final regulatory approvals.

The funding round reflects a broader trend in the FoodTech sector, where investment levels have been declining globally. According to Pitchbook, the first quarter of 2024 saw a decrease in venture capital investment in FoodTech worldwide, with Israel experiencing a particularly sharp decline. From 2020 to 2023, Israel was a leading hub for FoodTech investments, but recent figures show a substantial decrease, mirroring a general reduction in foreign investment in the region.

Blue Tree’s latest funding is one of the significant investments in the Israeli FoodTech industry during this challenging period, signaling continued interest in innovative solutions within the sector. The company aims to expand its technology to global markets and continue its mission of improving healthy beverage options.