SHOHAM, ISRAEL — Food technology startup Resugar raised $3 million in a Series A funding round.

Founded in 2020 by Niv Ben-Ami and Ron Livny, Resugar is developing a sugar substitute for large-scale industrial use. It uses a proprietary enzymatic process developed in partnership with The Technion – Israel Institute of Technology to transform raw materials into a finished sugar-like compound. The plant-based and low glycemic sweetener replicates sugar’s taste along with unique characteristics essential for moisture, color, volume and freezing point, according to the company.

The startup’s flagship product, the Resugar kit, offers food and beverage manufacturers a 1:1 sugar replacement with 70% to 80% less sugar content and 50% fewer calories. Resugar currently is in discussions with multinational companies around the licensing of its technology.

“The food and beverage industry has been disappointed by decades of sugar substitutes that underperform on taste, industrial properties, or both,” Mr. Ben-Ami said. “Stemming the tide of global sugar addiction requires harnessing the latest innovations in food science to deliver a flawless all-natural sugar substitute — to literally reinvent sugar, without the drawbacks.”

Resugar will use funds from its Series A round to build out its global sales and marketing team, expand its partnership with Technion and accelerate regulatory approval and IP protection for its products. The round was led by Eitan Yochananof, chief executive officer of the Israeli grocery chain M. Yochananof and Sons, with participation from private investors.