TEL AVIV, ISREAL — Cultivated dairy company Remilk raised $120 million in a Series B funding round led by Hanaco Ventures.

Remilk develops dairy proteins that are “chemically identical” to cow milk proteins but free of lactose, cholesterol and growth hormones, said Aviv Wolff, co-founder and chief executive officer of the Israel-based food technology startup. Created using a patented yeast-based fermentation process, the dairy proteins have the same flavor, nutritional profile and ability to stretch, melt and blend as their animal-based counterparts.

Remilk estimated its process uses 1% of the land, 4% of the greenhouse gas emissions and 5% of the water required to produce comparable products in the traditional dairy manufacturing process.

“It is essential for the future of our planet that we liberate the food chain from dependency on animals,” Mr. Wolff said. “We do so by crafting real dairy that tastes and feels the same, minus the cow.”

The Series B round will enable the company to scale production of its dairy-identical milk protein for commercial use by manufacturers in products such as cheese, yogurt and ice cream. Mr. Wollf aims to have products featuring Remilk in the marketplace later this year.

“Already, we are engaging with dozens of companies, including some of the world's most popular brands,” he said.

Remilk’s Series B round marks Hanaco Ventures’ second investment in the animal-free food technology space. The venture capital fund previously invested in Redefine Meat, a startup developing digital plant-based meat production solutions.

“Not only are Remilk products cleaner and significantly more sustainable when compared to traditional dairy, but they are indistinguishable in taste, feel and texture,” said Pasha Romanovski, founding partner of Hanaco Ventures. “Remilk also employs production methods that are radically more sustainable than traditional production methods today.”

In addition to Hanaco, the over-subscribed round included investments from Precision Capital, Rage Capital, CPT Capital, Intercap, OurCrowd, Aliya Capital, Chartered Group, Indorama Ventures, Tal Ventures, Fresh Fund, Idan and Gil Ofer, Izaki Ventures and Paradigm Shift Fund.