Dutch foodtech company Cano-ela has successfully raised €1.6 million in funding, supported by previous investor Oost NL and new backers Value Factory Ventures and Ecoseed. The company specializes in transforming underutilized canola seeds into plant-based ingredients. This investment will help Cano-ela enhance its production capabilities and advance its commercialization efforts. As the demand for sustainable food solutions grows, the company aims to provide natural alternatives to conventional refined ingredients. The funding comes at a time when startups face a challenging investment landscape, highlighting the confidence investors have in Cano-ela’s approach.
Earlier investments had enabled Cano-ela to develop proof-of-concept solutions and refine its research and development strategies. Compared to previous phases, this funding round marks a shift toward scaling up production and entering the commercial market. Past reports indicate that the company initially focused on proving the feasibility of its extraction methods, whereas the current phase emphasizes practical application and industry partnerships. The company’s progress reflects a growing trend in the food industry, where businesses seek to utilize more of raw plant materials to create sustainable food alternatives.
How will the funding be used?
Cano-ela plans to use the newly acquired capital to upgrade its pilot facility, expand production capacity, and accelerate collaborations with food manufacturers. By refining its extraction process, the company aims to provide food producers with sustainable ingredient solutions that reduce reliance on heavily processed inputs. Cano-ela’s investment strategy is aligned with its goal of optimizing the use of oil-rich seeds in food development.
“We are entering an exciting phase as we prepare to bring our innovative ingredients to market,” said Cano-ela co-founder and CEO Juliana Romero. “This investment will allow us to upgrade our pilot facility, increase production capacity and accelerate collaborations with food producers seeking high-quality, plant-based and sustainable ingredient solutions.”
What makes Cano-ela’s approach different?
Unlike conventional extraction techniques that primarily focus on obtaining vegetable oil, Cano-ela’s method retains multiple components from canola and other oil-rich seeds. This approach allows for the creation of pre-mixes that preserve natural structures while eliminating the need for refined ingredients. The three main products—Cano-cream, Cano-soluble, and Cano-fiber—offer various functionalities, such as emulsification, solubility, and the ability to absorb water and oil, making them versatile for food applications.
“Climate change and food security require smart solutions. Cano-ela makes optimal use of raw materials and converts them into sustainable ingredients – we proudly support their mission,” said Jacco Zuijdweg, Investment Manager at Value Factory Ventures.
Canola seeds, which belong to the same family as mustard and broccoli, are widely cultivated for both oil extraction and animal feed. They contain essential fatty acids, vitamins, and amino acids, making them a suitable base for plant-based food production. Cano-ela’s technology enables food companies to replace multiple conventional ingredients with a single natural alternative, contributing to sustainability efforts in the industry.
The investment aligns with a broader industry movement toward minimizing waste and improving ingredient efficiency in food production. As food manufacturers look for cleaner label options and sustainable alternatives, Cano-ela’s solution offers a way to meet these demands while utilizing agricultural resources more effectively. The company’s expansion could also support the adoption of plant-based diets by providing more functional and natural ingredients that maintain product texture and nutritional value.
With increasing consumer interest in plant-based and minimally processed foods, Cano-ela’s method presents an alternative to conventional refining techniques. If successfully scaled, this approach could influence the formulation of plant-based products and encourage the food industry to make better use of oilseed crops. The next steps for the company will focus on strengthening production infrastructure and building strategic partnerships to integrate its ingredients into mainstream food manufacturing.
