Boarding PassIsrael-based Fungit has a mission to feed billions of people around the world
Boarding Pass
Israel-based Fungit has a mission to feed billions of people around the world
The company has raised a total of $500,000 to tap into the $2 billion bio-fungicide market and help improve the shelf life of fruits and vegetables.
“The global population is growing by a staggering 100 million per year,” explained Fungit Biosolutions. “By the year 2050, the world population is expected to grow by more than 3 billion and exceed 10 billion people. An increase in population directly translates into an immediate increase in demand for food.”
The company uses microorganism-based biocontrol agents to protect against extreme weather conditions and prevent fungal diseases, thereby enhancing global food security by extending fruit and vegetable shelf life and improving crop yield.
“20-40% of agricultural produce is wasted due to spoilage during post-harvest handling,” it continued. “This translates into an estimated 1.3 billion tons of produce per year that never reaches the end consumer. “Fungit means to supply a healthy, environmentally friendly, effective, cost-effective, and host-driven solution to bridge the gap between the regulatory and consumer pressure and loss of produce in the supply chain.”
You can learn more about Fungit below.
Company Name: Fungit Biosolutions Ltd.
Sector: Agritech (food security)
Product/Service description:
Fungit's mission is to improve global food security by extending fruit and vegetable shelf life and improving crop yield, using fungal-based micro-organisms as sustainable and effective biocontrol agents.
The growing global population, along with the ongoing loss of arable land and climate change, present a major challenge to our food security.
Fungit uses microorganism-based biocontrol agents to protect against extreme weather conditions and prevent fungal diseases.
We apply cutting-edge microbiological, genome sequencing, and bioinformatic approaches for the development of our tailor-made, proprietary biocontrol agents.
Founder Bios:
Dr. Liat Avrahami-Moyal, Co-Founder & CTO: 12 years of experience in microbiology and phytopathology R&D.
Dr. Shimon Lecht, Co-Founder: 15 years of experience in leading biotech and pharmaceutical startups from concept to market.
Gal Admati, B.Sc., MBA, CEO: Experienced multi-disciplinary scientific manager with a successful track record growing from R&D to global commercialization.
Year of Founding: 2022
Last Investment Round: $500,000
Last Investment Stage: Pre-seed
Date of Last Investment: March 2022
Total investment to date: $500,000
Investors (leading and all): InNegev incubator (under the IIA incubator program) & IIA
Current number of employees: 3
How was the idea born?
The founders, Dr. Avrahami-Moyal and Dr. Lecht, have been close friends since their post-doctoral research days, forging a strong connection despite their diverse scientific backgrounds. Their collaboration began with a shared goal of synergizing their distinct training. A few years ago, during an extended period of collaboration, the founders identified a pressing global challenge— the impending "crisis" of food scarcity. Drawing on their expertise in molecular mechanisms of action and phytopathology, they theorized that an innovative, preventive approach to addressing food scarcity, focusing on increasing yields or reducing spoilage, could offer a sustainable solution. Undeterred by the challenges, the duo dedicated an immense amount of time and effort to conduct experiments in an unconventional "garage" setting. This initial concept not only withstood scrutiny but also evolved into the foundation of Fungit, an early-stage startup company.
What is the need for the product?
The global population is growing by a staggering 100 million per year. By the year 2050, the world population is expected to grow by more than 3 billion and exceed 10 billion people. An increase in population directly translates into an immediate increase in demand for food.
20-40% of agricultural produce is wasted due to spoilage during post-harvest handling. This translates into an estimated 1.3 billion tons of produce per year that never reaches the end consumer. The world needs to grow more food in the next 50 years than it has produced in the past 10,000. The use of chemical fertilizers and pesticides causes environmental damage and the emergence of resistant pests and pathogens.
Regulatory bodies worldwide are cracking down on current approved chemical lists and maximal residue levels, leaving growers and packagers with fewer viable options coupled with growing pressure from consumers for healthier alternatives.
How is it changing the market?
Current biological solutions exist but are plagued with limited efficiency and lack of specificity. Fungit means to supply a healthy, environmentally friendly, effective, cost-effective, and host-driven solution to bridge the gap between the regulatory and consumer pressure and loss of produce in the supply chain.
How big is the market for the product and who are its main customers?
The global agrichemical market is estimated at $220 billion in 2021 with a CAGR of 3%. Within that market, the bio-fungicide market is estimated at $2 billion in 2021 with a CAGR of 6.7%, and the biofertilizers+biostimulant market size is estimated at $1.8 and $3.8 billion respectively in 2021, with a CAGR of 11.8%. Typical strategic clients include large agrochemical manufacturers and distributors such as Bayer, Syngenta, and DECCO. Typical tactical clients include end users of agrichemicals such as large growers, nurseries, seed producers, and packaging houses.
Does the product exist already? If not - at what stage is it and when is it expected to hit the market?
Fungi has successfully completed its first year of development under the IIA incubator program with InNegev Incubator and has entered its second year of development. We are currently advancing our product development program and have achieved successful proof of concept and are moving on to sem-commercial studies with several potential partners. We expect the product to reach the market towards the end of 2026.
Who are the main competitors in this sector and how big are they?
Our main competitors are biological pesticide and biostimulator manufacturers. Most are small to mid-level companies. Of course, although legacy agrichemical manufacturers could also traditionally be considered competition, we see ourselves as a complementary product that could serve to reduce residue levels by working in tandem with traditional solutions.
What is the added value that the founders bring to the company and the product?
The founders, Dr. Shimon Lecht and Dr. Liat Avrahami-Moyal, bring significant added value to the company and its product through their extensive relevant knowledge and experience.
Dr. Lecht has a proven track record of leading multidisciplinary teams in science-based startups, which includes the development of novel formulations and transitioning to large-scale manufacturing, particularly in biotech and CPG industries. Dr. Lecht has successfully fulfilled senior management roles, and managed investor relations and expectations, showcasing his entrepreneurial approach. Dr. Lecht is a serial entrepreneur and is actively involved in fundraising, M&A, and board presentations.
Dr. Avrahami-Moyal, a trained microbiologist and molecular biology researcher, brings her expertise in phytopathology and microbiology to the R&D activity of the company. Her experience also includes leading high-risk research projects in startup environments, In this capacity, Dr. Avrahami-Moyal established and managed an R&D laboratory, overseeing the team and project timelines for developing biological solutions for bacterial plant diseases. Additionally, her leadership as a team leader in a certified laboratory focused on vegetable seed quality further contributes to her ability to manage teams and deliver results.
Together, Dr. Lecth and Dr. Avrahami-Moyal combine their strengths to address challenges in the agricultural sector and bring innovative solutions to market.
What will the money coming in from the round be used for?
The company is aiming to raise $2.5 million to reach its commercial sales milestone and is currently seeking the first $250,000 in order to reach its first MVP (minimal viable product) in order to position us for the next round.
The company intends to utilize the funds to enable continued operations, R&D and reach fundable milestones, and successfully raise significant funding for its next steps. Any funds received would assist in transferring R&D activities to operational locations out of the conflict zone, sourcing materials, and keeping the company afloat.
In the "Startup Boarding Pass" section, CTech will cover the (relatively) small investments made in companies during the early stages of their existence - and the entrepreneurs and startups who have not yet had the opportunity to reveal their stories to the world. Please use the linked form and fill it out according to the guidelines. This form is intended for startups raising between $500,000 and $3 million from venture capital funds, angels, or official grants from Israeli and foreign institutions. If relevant, someone at CTech will be in touch for follow-up questions.
