Monday, September 19th, 2022
Kate Farms has secured $75 million in Series C funding, the Santa Barbara-based meal replacement company announced Sept. 19, taking its venture capital total well over $150 million.
The latest round was led by Novo Holdings, a leading life science investor, with additional funding from current investors Kaiser Permanente Ventures, Goldman Sachs Asset Management, Main Street Advisors and existing individual investors.
In 2020, Kate Farms closed both a $60 billion Series B round and a $23 million Series A round.
“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,” Kate Farms CEO Brett Matthews said in a news release. “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.”
Kate Farms produces plant-based organic formulas for tube and oral feeding for people suffering from chronic illnesses or acute conditions.
Its products are now available in more than 95% of hospitals around the country and are covered by Medicare, Medicaid and more than 2,000 private insurance plans, the company said.
Kate Farms was founded by Richard and Michelle Laver in 2011, when the two were intent on helping their young daughter, Kate, who was born with cerebral palsy. Matthews has been the CEO since 2015.
“Michelle and I started Kate Farms to help our daughter Kate who was failing to thrive,” Richard Laver said in the company’s news release. “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.”
The Series C round will help Kate Farms develop new products and enter new channels, the company said.
Since the first quarter of 2021, Kate Farms has launched 13 new products. It plans to open a manufacturing facility in Goleta later this month.