TRENDLINES: Yeast, Color, and Capital. What Start-Up’s US$23.6M Fund-Raising Means

Biotech can disrupt traditional supply chains, as Israel-based Phytolon, a start-up under The Trendlines Group, is about to demonstrate.

Pytolon recently closed its Series B funding round, raising a massive US$23.6 million as it scales production of its natural colours for use with human food, targeting the US market.

This follows a milestone US FDA approval earlier this year for its flagship "Beetroot Red" colorant produced from yeast fermentation.

The news is boosting investor confidence for its founding incubator and largest shareholder, Trendlines, as the Series B round should validate a significant step-up in valuation for Phytolon.

Phytolon’s proprietary platform utilizes precision fermentation of baker’s yeast to produce sustainable, high-performing natural food pigments. With consumers and regulators placing pressure on food manufacturers to eliminate petroleum-based synthetic dyes, Phytolon’s cost-effective, high-purity natural alternatives (covering purple, red, orange, and yellow shades) are poised to capture a massive market.

The Series B Raise

Funding Parameter	Details and Historical Milestones
Series B Capital Raised	US$23.6 million
Total Cumulative Funding	US$43.6 million
Lead Investor	Undisclosed Strategic Investor
Key Co-Investors	Millennium Foodtech, NextGen Nutrition, Colorcon Ventures, Yossi Ackerman
Historical Corporate Backers	DSM Venturing, Rich Products Ventures, Arkin Holdings, Cibus
Development Partner	Ginkgo Bioworks (R&D collaboration established in 2022)

Phytolon's Series B round valuation was not disclosed.

The round was led by an undisclosed "strategic investor"and supported by existing shareholders, including Millennium Foodtech, NextGen Nutrition, Colorcon Ventures, and Yossi Ackerman.

Advancing in the US

"This new funding demonstrates the confidence that the market players have in Phytolon’s abilities to execute its market entry, generate initial commercial sales, and advance strategic partnerships with leading U.S. food manufacturers."
-- Haim Brosh, CEO, Trendlines Group

Prior to the Series B close, Trendlines held a 25% equity stake in the startup.

Trendlines did not say if it participated in Series B but, somewhat puzzlingly, it did say it "intends to participate in Phytolon's future financing rounds as appropriate."

Assuming Trendlines did not participate in this round, its diluted ownership stake could sit at ~20%.

BOTTOMLINE

Trendlines’ CEO Haim Brosh has spent the last two years executing a rigorous turnaround strategy.

Stock	6.3 c
52-wk range	2.6 – 8.4 c
PE	27
Market cap	S$92 m
Shares outstanding	1.46 B
Dividend yield	--
1-yr return	110%
P/B	0.92
Source: Yahoo!

He focused resources on bringing advanced-stage portfolio companies closer to exits rather than funding new seed ventures.

For Trendlines’ shareholders, this funding round is a signal yet that a lucrative exit — either via an acquisition or an IPO — is very likely.

It's also a reminder that Trendlines has multiple other startups in advance development.

When exits occur, they will provide the cash returns and potential dividend payouts that Trendlines has promised its investor base. If those materialise, Trendlines likely will have a higher market cap.

To foster those scenarios, shareholders recently approved a share incentive scheme for the CEO.

In essence, he is incentivised to stay on as CEO and grow the company's market cap, as shown below:

Tranche	No. of RSUs*	Continuous Service	Market Value Milestone (Condition for Share Issue)
First	6M	15 months (from 16 April 2026)	None
Second	6M	24 months	At least S$120M
Third	6M	36 months	At least S$180M