–Investments will drive innovation and expansion in a high-growth company Plant-based Nutrition Market–
SANTA BARBARA, California., September 19, 2022 /PRNewswire/ — Kate Farms, the leader in bringing plant-based nutrition to healthcare, today announced the closing of its Series C financing round led by Novo Holdings. Novo Holdings is one of the world’s leading life science investors and is responsible for managing the assets of the Novo Nordisk Foundation. Other participants in the upside 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 investment in the Company and follows the Company’s successful Series B fundraising in 2020.
Kate Farms produces plant-based organic and clinically proven tube and oral feeding formulas to nourish people with chronic illnesses and acute illnesses. Kate Farms’ entire product portfolio is made without the common allergens often found in older brands’ formulas and is USDA certified as organic and non-GMO certified, vegan, gluten-free and kosher and in more than 95% of the world’s US hospitals available.
“Despite the challenging global economic environment, I am pleased that Novo Holdings and our existing investors appreciate the significant potential of plant-based nutrition and Kate Farms’ leadership in this fast-growing market,” he said Brett MatthewsChairman and CEO of Kate Farms since 2015. “Our brand has deeply rooted values which means finding the right investment partners is a critical decision for us. Novo Holdings’ investment in Kate Farms will enable us to create 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 delighted to be working with and supporting Kate Farms in her efforts to meet the nutritional needs of multiple patient populations. We believe our legacy in life sciences can serve the company well as it explores additional ways to use scientific and clinical evidence to support plant-based clinical nutrition. In addition, this investment fits seamlessly with our goal of improving the health of people and the sustainability of society and the planet.”
The Series C funds will help drive Kate Farms’ additional innovation in its current product portfolio, developing new products and expanding into new channels. As Kate Farms continues to define the plant-based category in the medical community, the company is enjoying its seventh year of sustained growth.
At the close of the Series C funding round, Kate Farms co-founded Richard Lavar Adding: “Michelle and I started Kate Farms to help our daughter Kate who was unable to thrive. This investment by Novo Holdings and other notable investors is a milestone and market proof that the product we created for Kate has helped so many. We are confident that Kate Farms will continue to develop breakthrough nutritional products to help patients thrive.”
Other highlights in 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 personal insurance plans.
- Kate Farms has launched 13 new products since Q1 2021, including the only organic and plant-based closed system hanging bag to deliver Kate Farms formulas in hospital settings, specialty therapeutic formulas for diabetes and kidney support, new peptide – and standard formulas for pediatric and adult use and additional flavors.
- Kate Farms formed a Hospital and Homecare team to focus on making plant-based nutrition accessible in hospital settings, whether oral, tube-fed or on the tray for patients.
- This month, Kate Farms opens its first innovation and quality center in Goleta, CA.
- Kate Farms responded quickly to the nationwide infant formula recall and lack of inventory, helping healthcare professionals and parents find appropriate formula substitutes and providing samples to doctors, nurses and patients.
- Kate Farms will present two clinical abstracts at the upcoming Association of Pediatric Gastroenterology and Nutrition (NASPGHAN) conference in October.
JP Morgan acted as sole placement agent for Kate Farms and Latham & Watkins LLP acted as adviser 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 was given the name Kate Laver did not thrive because she could not tolerate any of the tube feedings available. Her determined parents, Richard and Michelle, had the transformative idea of creating a better formula using high-quality, organic, herbal 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 medicinal formulas for children and adults that can be used as a sole source or as a supplement to oral or tube feeding. They are available nationwide and are eligible for Medicare, Medicaid, and private insurance coverage. Kate Farms formulas are designed for compatibility with easily digestible organic pea protein, fiber and phytonutrients, and no common allergens, artificial sweeteners or flavors. Kate Farms is accessible in more than 800 US hospitals, including top pediatric hospitals, and availability is increasing daily. Visit www.katefarms.com. For more information, follow us on Instagram, Facebook or LinkedIn.
ABOUT NOVO HOLDINGS A/S
Novo Holdings A/S is a limited liability company wholly owned by the Novo Nordisk Foundation. It is the holding company of the Novo Group, consisting of 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 sciences investor focused on creating long-term value. As a life science investor, Novo Holdings provides seed and venture capital to development-stage companies and makes significant investments in growing and established companies. Novo Holdings also manages a broad portfolio of diversified financial assets. More information: www.novoholdings.dk.
ABOUT GOLDMAN SACHS ASSET MANAGEMENT
By bringing together traditional and alternative investments, Goldman Sachs Asset Management offers clients around the world a committed partnership and focus on long-term performance. As the primary investment practice within Goldman Sachs (NYSE: GS), we provide investment and advisory services to the world’s leading institutions, financial advisors and individuals, drawing on our closely connected global network and tailored expert insights across all regions and markets more than 2 trillion dollars in assets under management worldwide as of June 30, 2022. Driven by a passion for our clients’ performance, we aim to build long-term relationships based on belief, sustainable results and shared success over time.
ABOUT KAISER PERMANENT VENTURES
Founded in 1998 with over 70 investments to date, Kaiser Permanente Ventures 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 plays an important role in transforming America’s healthcare system by improving healthcare outcomes, enhancing consumer experiences and driving affordability, while delivering a highly competitive return on our investments. For more information, visit www.kpventures.com.
ABOUT MAIN STREET ADVISORS
Based in Santa Monica, California, Main Street Advisors (MSA) is an investment advisory firm serving high-profile artists, athletes and executives across the media, entertainment, music and sports industries. MSA has invested in Kate Farms through its MSA Enterprises LP investment fund, which targets emerging growth companies in the consumer goods, entertainment, media, sports, retail and technology sectors.
CONTACT:
Errin Cecil Smith
[email protected]
SOURCE Kate Farms
