From $27M Funding to Insolvency: The Rise and Fall of Food-Tech Startup InnovoPro | CTech

The Central District Court has approved food tech firm InnovoPro to begin insolvency proceedings. The company, burdened with debts of about 6.8 million shekels (around $2 million), had its request granted by Judge Merav Ben-Ari. Attorney Gonen Kestenbaum has been assigned as the temporary trustee, and the court has halted all repayment of debts and legal actions against the company.

InnovoPro, founded in 2013, focuses on creating innovative food ingredients from chickpea protein. Their goal has always been to offer healthier and more sustainable food options. They developed a unique platform that allows food makers to produce environmentally friendly products. Their main product, a chickpea protein concentrate, is known for its nutritional benefits and versatility.

In 2021, InnovoPro was recognized by the United Nations as one of 50 small to medium-sized companies shaping the future of global food systems. Despite raising around $27 million through various funding rounds, efforts to secure more investment failed, leading to this insolvency situation.

Attorney Idan Adler Reiss noted that InnovoPro worked hard to raise funds up to the last moment. When those attempts fell short, they filed for court protection to safeguard their creditors, suppliers, and employees.

This situation isn’t unique. Many startups in the food tech industry grapple with funding challenges. A recent survey found that 60% of food startups struggle to attract investors due to market volatility. The pressure to innovate while managing financial health can be overwhelming, often leading to tough decisions about the future.

As this case unfolds, it serves as a reminder of the highs and lows in the fast-evolving food tech landscape. InnovoPro’s commitment to sustainability and health could inspire hope, even as they navigate these difficult times. For more insights on startup challenges in the food sector, check resources like TechCrunch.

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