Kate Farms Closes $75 Million Series C Round
By Kate Farms
Kate Farms, the market leader in bringing plant-based nutrition into healthcare, announced today the completion of its Series C round of funding, led by Novo Holdings. Novo Holdings is among the world’s leading life science investors and is responsible for managing the assets of The Novo Nordisk Foundation. Additional participants in the up-round include current investors Kaiser Permanente Ventures, Goldman Sachs Asset Management, Main Street Advisors and existing individual investors. This Series C growth capital round is for a minority stake in the company and follows on the heels of the company’s successful Series B fund raise in 2020.
Kate Farms produces plant-based organic and clinically demonstrated formulas for tube and oral feeding to help nourish those with chronic illnesses and acute conditions. Made without the common allergens frequently found in legacy brand formulas, Kate Farms’ full product portfolio is USDA Organic and Non-GMO Certified, vegan, gluten-free and kosher and is accessible in more than 95% of U.S. hospitals.
“Despite the challenging global economic environment, I’m pleased that Novo Holdings and our existing investors appreciate the significant potential of plant-based nutrition and Kate Farms’ leadership in this rapidly growing market,” said Brett Matthews, Chairman and CEO of Kate Farms since 2015. “Our brand has deeply held values, which means that finding the right investment partners is a critical choice for us. Novo Holdings’ investment in Kate Farms will allow us to develop more innovative products, enter new markets and continue to serve the patients who depend on us for their nutrition, as well as thousands of healthcare providers.”
Kartik Dharmadhikari, Partner, Novo Growth, Novo Holdings, added: “We are pleased to partner with Kate Farms and support them in their efforts to meet the nutritional needs of numerous patient populations. We believe our life sciences heritage can serve the company well as it explores additional ways to utilize science and clinical evidence to support plant-based clinical nutrition. Furthermore, this investment aligns seamlessly with our purpose of improving people’s health and the sustainability of society and the planet.”
The Series C funds will help fuel Kate Farms’ additional innovation in its current product portfolio, develop new products and enter new channels. As Kate Farms continues to define the plant-based category in the medical community, the company is experiencing its seventh year of sustained growth.
On closing the Series C funding round, Kate Farms co-founder Richard Laver added,
“Michelle and I started Kate Farms to help our daughter Kate who was failing to thrive. This investment from Novo Holdings and other notable investors is a milestone and a market validator that the product we created for Kate has helped so many. We are confident that Kate Farms will continue to create breakthrough nutritional products to help patients thrive.”
Other 2022 highlights include:
- Kate Farms products are now accessible with more than 95 percent of hospitals around the country and are covered by Medicare, Medicaid and more than 2,000 private insurance plans.
- Kate Farms launched 13 new products since Q1 of 2021, including the only organic and plant-based, closed-system hanging bag to deliver Kate Farms formulas in the hospital setting, specialty therapeutic formulas for diabetes and renal support, new peptide and standard formulas for pediatric and adult use and additional flavors.
- Kate Farms established a Hospital and Homecare Team to focus on creating access to plant-based nutrition in hospitals, orally, via tube feeding or on-tray for patients.
- This month, Kate Farms will open its first Innovation and Quality Center in Goleta, CA.
- Kate Farms reacted quickly to the national infant formula recall and out-of-stocks, helping healthcare professionals and parents identify appropriate replacement formulas and providing samples to clinicians, caregivers and patients.
- Kate Farms will be presenting two clinical abstracts at the upcoming Association of Pediatric Gastroenterology and Nutrition (NASPGHAN) conference in October.
J.P. Morgan acted as sole placement agent to Kate Farms and Latham & Watkins LLP served as counsel to Kate Farms on the transaction.
To learn more about Kate Farms, its mission and products, visit www.katefarms.com.
ABOUT KATE FARMS
Kate Farms was founded when a little girl named Kate Laver was failing to thrive because she couldn’t tolerate any of the available tube feeding formulas. Her determined parents Richard and Michelle had the transformative idea to develop a better formula using high quality, organic, plant-based ingredients without the common allergens and ingredients found in traditional formulas. Today, Kate is thriving, and Kate Farms is now the #1 recommended plant-based formula. * Kate Farms offers medical formulas for children and adults, to be used as the sole source or as supplemental nutrition, for oral or tube feeding. They are available nationally and eligible for insurance coverage with Medicare, Medicaid, and private insurance. Kate Farms formulas are made for tolerance with easily digested organic pea protein, fiber and phytonutrients, and without common allergens, artificial sweeteners or flavors. Kate Farms can be accessed in more than 800 U.S. hospitals, including the top children’s hospitals, and availability is increasing daily. Visit www.katefarms.com. For more information, follow us on Instagram, Facebook or LinkedIn.