–Investments will drive innovation and expansion in fast-growing plant food market–
SANTA BARBARA, CA., September 19, 2022 /PRNewswire/ — Kate Farms, the market leader in bringing plant-based nutrition to healthcare, today announced the completion of its Series C funding round 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 upward round include current investors Kaiser Permanente Ventures, Goldman Sachs Asset Management, Main Street Advisors and existing individual investors. This Series C round of growth capital is for a minority stake in the company and follows a successful Series B fundraising in 2020.
Kate Farms produces organic and clinically proven plant-based tube and oral feeding formulas to help nourish people with chronic illnesses and acute conditions. Made without the common allergens often found in legacy brand formulas, Kate Farms’ complete product portfolio is certified USDA organic and non-GMO, vegan, gluten-free and kosher and available in more than 95% of US hospitals.
“Despite the challenging global economic environment, I am pleased that Novo Holdings and our existing investors appreciate the significant potential of plant nutrition and Kate Farms’ leadership in this rapidly growing market,” said Brett MatthewsChairman and CEO of Kate Farms since 2015. “Our brand has deep values, which means 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 whose nutrition depends on us, as well as thousands of healthcare providers.”
Kartik Dharmadhikari, Partner, Novo Growth, Novo Holdings, added, “We are delighted to partner with Kate Farms and support them in their efforts to meet the nutritional needs of numerous patient groups. We believe our life sciences heritage can serve the company well as it explores additional ways to use science and clinical evidence to support plant-based clinical nutrition. Moreover, this investment is in line with our goal to improve the health of people and the sustainability of society and the planet.”
The Series C funds will help fuel Kate Farms’ additional innovation in its current product portfolio, new product development and entry into 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.
In 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 market indicator that the product we created for Kate has helped so many. We are confident that Kate Farms will continue to create revolutionary nutritional products to help patients thrive.”
Other highlights for 2022 include:
- Kate Farms products are now available in more than 95 percent of hospitals nationwide and are covered by Medicare, Medicaid and more than 2,000 private insurance plans.
- Kate Farms has launched 13 new products since the first quarter of 2021, including the only organic and plant-based hanging bag with a closed delivery system for Kate Farms formulas in the hospital setting, special therapeutic formulas for diabetes and kidney support, a new peptide and standard pediatric formulas adult use and use and additional flavors.
- Kate Farms has established a hospital and home care team to focus on creating access to plant-based nutrition in hospitals, orally, through tube feeding or on trays for patients.
- This month, Kate Farms will open its first Innovation and Quality Center in Goleta, California.
- Kate Farms responded quickly to national infant formula recalls and stockouts, helping healthcare professionals and parents identify appropriate replacement foods and providing samples to doctors, caregivers and patients.
- Kate Farms will present two clinical abstracts at the upcoming Association for Pediatric Gastroenterology and Nutrition (NASPGHAN) conference in October.
JP Morgan is acting as sole placement agent for Kate Farms and Latham & Watkins LLP is serving as advisor to Kate Farms on the transaction.
To learn more about Kate Farms, its mission and products, visit www.katefarms.com.
ABOUT KATE’S FARMS
Kate Farms was founded when a little girl was baptized Kate Laver she was failing to thrive because she could not tolerate any of the tube feeding formulas available. 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 medicated 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 are eligible for insurance coverage with Medicare, Medicaid, and private insurance. Kate Farms formulas are formulated for tolerability with easily digestible organic pea protein, fiber and phytonutrients and without common allergens, artificial sweeteners or flavors. Kate Farms can be accessed at more than 800 hospitals in the US, including top children’s hospitals, and availability is increasing daily. Visit www.katefarms.com. For more information, follow us on Instagram, Facebook or LinkedIn.
FOR NOVO HOLDINGS A/S
Novo Holdings A/S is a private limited liability company wholly owned by the Novo Nordisk Foundation. It is the holding company of the Novo Group, comprising Novo Nordisk A/S and Novozymes A/S, and is responsible for managing the assets of the Novo Nordisk Foundation.
Novo Holdings is recognized as a leading international life science investor with a focus on long-term value creation. As a life science investor, Novo Holdings provides seed and venture capital to growth-stage companies and holds significant ownership positions in growth and established companies. Novo Holdings also manages a broad portfolio of diversified financial assets. Additional information: www.novoholdings.dk.
ABOUT GOLDMAN SACHS ASSET MANAGEMENT
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients worldwide with a dedicated partnership and focus on long-term performance. As a core investment area within Goldman Sachs (NYSE: GS ), we provide investment and advisory services to leading global institutions, financial advisors and individuals, drawing on our deeply connected global network and tailored expert insights, in every region and market – supervision more than 2 trillion dollars in supervised assets worldwide to June 30, 2022. Driven by a passion for our clients’ performance, we strive to build long-term relationships based on conviction, sustainable results and shared success over time.
ABOUT KAISER PERMANENTE VENTURES
Kaiser Permanente Ventures, founded in 1998 with over 70 investments to date, is one of the most successful strategic corporate venture investment programs in the healthcare industry. The KP Ventures team builds on the assets and capabilities of Kaiser Permanente’s $93 billion integrated delivery system to support innovative companies. KP Ventures is instrumental in transforming American healthcare by improving health outcomes, enhancing the user experience and driving affordability, while delivering highly competitive returns on our investments. For more information, please see www.kpventures.com.
FOR MAIN STREET ADVISORS
Main Street Advisors (MSA), based in Santa Monica, California, is an investment advisory firm serving high-profile entertainers, athletes and executives from the media, entertainment, music and sports industries. MSA invested in Kate Farms through its investment fund MSA Enterprises LP, which targets emerging companies in the consumer, entertainment, media, sports, retail and technology sectors.
SOURCE Kate Farms