Kate Farms, a Santa Barbara, Calif.-based company that brings plant-based nutrition into healthcare, closed a $51m Series B round of funding.
The round was led by Goldman Sachs with participation from Kaiser Permanente Ventures and existing individual investors. In conjunction with the funding, Allison Berardo, a Vice President in Goldman Sachs’ growth equity platform, GS Growth, will be joining the Board of Directors at Kate Farms.
The company intends to use the funds to bring its products to market.
Led by Brett Matthews, Chairman and CEO, Kate Farms produces plant-based, organic, clinically proven formulas for tube feeding for people 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.
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 hospitals, the company 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.
Kate Farms also 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.