Kate Farms, a company bringing plant-based nutrition into the medical and healthcare space, has announced additional funding to its Series B round, bringing the total to US$60 million. The Santa Barbara-based firm says that the capital will be used to fuel the expansion of its clinically proven plant-based liquid nutrition in the U.S. as it experiences four consecutive years of sustained growth.
Kate Farms recently added significant financing from Santa Monica-based investment firm Main Street Advisors to its Series B round, bringing the final raise to US$60 million. It came after the company closed an initial raise of US$51 million in November 2020, led by investment bank giant Goldman Sachs and Kaiser Permanente Ventures, the venture arm of one of America’s leading healthcare providers.
The capital from the Series B round will go towards Kate Farms’ growth and continued innovation and expansion to “help make plant-based nutrition available to all”, the company said in a statement. Kate Farms’ latest investor Main Street Advisors has previously backed Beyond Meat, as well as a number of major production and entertainment companies such as Attn: and The Spring Hill Company.
Founded in 2011, Kate Farms produces 100% vegan, USDA-certified organic, clinically proven formulas for tube feeding designed for those with chronic illnesses, as well as nutrition shakes targeting people with shorter-term or milder conditions. Their formulas, made from pea protein, prebiotic soluble fiber from organic agave inulin and an antioxidant-rich phytonutrient blend, are also gluten-free and kosher, and currently accessible in more than 95% of U.S. hospitals.
Kate Farms medical formulas and nutrition shakes address the urgent state of healthcare in this country due in large part to poor nutrition, and the impact the company can have on both individual health and ultimately decreasing the cost of healthcare overall makes this an excellent investment.Paul Wachter, Founder & CEO, Main Street Advisor
Speaking about its decision to back Kate Farms, Main Street Advisor founder and CEO Paul Wachter described the firm as having “compelling growth opportunities ahead of them.”
“Kate Farms medical formulas and nutrition shakes address the urgent state of healthcare in this country due in large part to poor nutrition, and the impact the company can have on both individual health and ultimately decreasing the cost of healthcare overall makes this an excellent investment,” Wachter added.
The investment injection comes after Kate Farms reported its fourth year of sustained growth, which has extended the firm’s product availability through contracts covered by Medicare, Medicaid and more than 2,000 private insurance plans in the U.S., as well as launching over-the-counter options on their own website and on e-commerce giant Amazon.
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.Allison Berardo, Vice President, GS Growth, Goldman Sachs
As the coronavirus continues to ramp up awareness of the health, safety and vulnerabilities of the animal-based supply chain, as well as renewed public focus on nutrition and wellbeing, plant-based solutions – especially in medical settings where such offerings tend to be few and far between – will no doubt be a key opportunity for growth.
“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,” stated Allison Berardo, vice president of GS Growth, Goldman Sachs’ growth equity platform, in November upon the initial Series B close.
In a statement, Kate Farms chairman and CEO Brett Matthews says that the additional Series B funds will also enable the firm to continue supporting mission-aligned projects amid what has been a devastating year for families across the U.S. due to the pandemic, making the need for daily nutrition for those with medical conditions even more pressing.
“We know first-hand that our clinically proven shakes can help improve people’s health by providing daily nutrition to those with medical conditions—severe or mild—to recover and maintain their health,” said Matthews, citing their partnership with nonprofit Support+Feed to distribute Kate Farms plant-based shakes to voters and poll workers and donating nutritious meals to at-risk people such as frontline healthcare workers, senior citizens and homeless populations.
All images courtesy of Kate Farms.