SANTA BARBARA, CALIF. — Kate Farms, a maker of plant-based formulas for tube feeding, closed a $51 million Series B funding round led by Goldman Sachs, with participation from Kaiser Permanente Ventures and existing individual investors.
Funds will go toward innovation and expansion following the launch of three new products earlier this year, the company said. Recent additions include a specialty formula for children and a product to help people who suffer from weight loss due to chemotherapy during cancer treatment.
The company also is expanding beyond medical formulas with nutrition shakes designed for people with shorter-term or milder conditions that don’t require tube feeding, including a meal replacement shake available over the counter on Amazon and through the brand’s website.
“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 chief executive officer of Kate Farms. “With the addition of our new Blue-Chip investors, we will continue to accelerate our efforts to lead the plant-based revolution in health care to help the hundreds of millions of people who can benefit.”
Kate Farms’ products are USDA organic-certified, vegan, gluten-free and kosher and are accessible in more than 95% of US hospitals. The company also secured a five-year contract issued by the Department of Veterans affairs, which will make its products available to veterans and other through government services.
“We are excited to be backing the Kate Farms team as they continue to pave the way for plant-based nutrition in health care,” said Allison Berardo, vice president of GS Growth, Goldman Sachs’ growth equity platform, who will join Kate Farms’ board of directors. “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.”