Kate Farms Closes $51 Million Series B; Investment Led By Goldman Sachs and Kaiser Permanente Ventures
Investment will advance the company's mission of making plant-based nutrition available for all in need
SANTA BARBARA, Calif., Nov. 12, 2020 /PRNewswire/ -- Kate Farms, the market leader bringing plant-based nutrition into healthcare, is pleased to announce the completion of its Series B round of funding, led by Goldman Sachs with additional participation from Kaiser Permanente Ventures and existing individual investors, for a raise of $51 million.
Kate Farms produces plant-based, organic, clinically proven formulas for tube feeding to help nourish those with chronic illnesses. The company also produces nutrition shakes consumed orally for people with shorter-term or milder conditions that don't require tube feeding. Made without major allergens, the product portfolio is USDA Organic-certified, vegan, gluten-free and kosher, and is accessible in more than 95% of U.S. hospitals.
"We are excited to be backing the Kate Farms team as they continue to pave the way for plant-based nutrition in healthcare. Kate Farms' differentiated product, strong community support from both patients and providers, and widespread distribution make them a true category leader within the overall liquid nutrition industry," said Allison Berardo, a Vice President in Goldman Sachs' growth equity platform, GS Growth, who will be joining the Board of Directors at Kate Farms.
Kaiser Permanente Ventures is a national leader in strategic investing to advance healthcare innovation, having invested in more than 70 companies over the past 20 years. Sam Brasch, Kaiser Permanente Ventures' Senior Managing Director, noted that his team was thrilled by the guidance it received from within Kaiser Permanente and beyond on the important role of plant-based nutrition, especially as it pertains to the health and well-being of patients relying on enteral nutrition support.
"Kate Farms' mission has always been to make nutrition the foundation of health so that people can live their best lives. We know first-hand that plant-based nutrition can reverse disease and prevent illness and are excited to be working alongside some of the leading hospitals, doctors and dietitians to provide a higher standard of nutrition for people with medical conditions," said Brett Matthews, Chairman and CEO of Kate Farms. "Now with the addition of our new Blue-Chip investors, we will continue to accelerate our efforts to lead the plant-based revolution in healthcare to help the hundreds of millions of people who can benefit."
The funds will help fuel Kate Farms' growth to bring its higher standard plant-based liquid nutrition to those in need, while driving overall innovation and expansion of the business. As Kate Farms continues to define the plant-based category in the medical community, the company is experiencing its fourth year of sustained growth. Other key wins include:
• Kate Farms products are now available in more than 95 percent of hospitals around the country and are covered by Medicare, Medicaid and more than 2,000 private insurance plans.
• In addition to being available in top-ranked adults and children's hospitals in the country, Kate Farms secured a five-year contract award issued by the Department of Veterans Affairs (VA), which makes its products available to veterans and others through government services.
• McKesson Corporation (MCK NYSE) named Kate Farms its Supplier of the Year in 2020 for its continued product innovation, healthy product pipeline and outstanding growth.
• Kate Farms launched three new products and formulas in 2020, including a specialty formula for children, a product to help people who suffer from weight loss due to chemotherapy during cancer treatment and a meal replacement shake that is available over the counter on katefarms.com and Amazon.
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: use the highest-quality organic plant-based ingredients without the allergens found in other formulas. Today Kate is thriving, and healthcare professionals, caregivers and people with medical conditions are driving a movement to demand better nutrition.
In 2015, successful entrepreneur Brett Matthews, who also understands first-hand the power of nutrition to heal, invested in Kate Farms, became Chairman and eventually full-time CEO. Under Brett's leadership, and with an amazing Board, Team and investors, Kate Farms is the leader in the providing plant based liquid nutrition to those with chronic conditions and less severe health needs.
Used for tube and oral feeding, Kate Farms is eligible for insurance coverage by Medicare, Medicaid and more than 2,000 private insurance plans and a growing number of WIC1programs.Kate Farms formulas are on formulary with many leading children's and adult hospital systems across the country and are available to more than 95% of U.S. hospitals. Free of common allergens and clinically proven, Kate Farms formulas and nutrition shakes are made of easily digested organic pea protein, prebiotic soluble fiber from organic agave inulin and a clinically effective phytonutrient blend that provides antioxidants. Kate Farms flows easily through a feeding tube and is also used orally because of its great taste. Kate Farms tastes great and is also available at www.katefarms.com.
For more information, visit www.katefarms.com or follow the company on Instagram, Twitter, Facebook, or LinkedIn.
About Goldman Sachs Merchant Banking Division
Founded in 1869, The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm. Goldman Sachs Merchant Banking Division (MBD) is the primary center for the firm's long-term principal investing activity. MBD is one of the leading private capital investors in the world with investments across private equity, infrastructure, private debt, growth equity and real estate.
About Kaiser Permanente Ventures
Kaiser Permanente Ventures, the corporate venture capital arm of Kaiser Permanente, is dedicated to forming effective partnerships with innovative companies. Kaiser Permanente Ventures invests predominantly in HCIT and services, as well as diagnostics, drug delivery and therapeutic medical devices.
1 WIC is a registered service mark of the U.S. Department of Agriculture for USDA's Special Supplemental Nutrition Program for Women, Infants and Children.
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