Kate Farms Closes $51 Million Series B; Investment Led By Goldman Sachs and Kaiser Permanente Ventures

Santa Barbara, CA – November 12, 2020 — Kate Farms, the market leader bringing plant-based nutrition into healthcare, is pleased to announce the completion of its Series B round of funding, led by Goldman Sachs with additional participation from Kaiser Permanente Ventures and existing individual investors, for a raise of $51 million.

Kate Farms produces plant-based, organic, clinically proven formulas for tube feeding to help nourish those 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.

“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,” said Allison Berardo, a Vice President in Goldman Sachs’ growth equity platform, GS Growth, who will be joining the Board of Directors at Kate Farms.

Kaiser Permanente Ventures is a national leader in strategic investing to advance healthcare innovation, having invested in more than 70 companies over the past 20 years.  Sam Brasch, Kaiser Permanente Ventures’ Senior Managing Director, noted that his team was thrilled by the guidance it received from within Kaiser Permanente and beyond on the important role of plant-based nutrition, especially as it pertains to the health and well-being of patients relying on enteral nutrition support.

“Kate Farms’ mission has always been to make nutrition the foundation of health so that people can live their best lives. 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 CEO of Kate Farms. “Now with the addition of our new Blue-Chip investors, we will continue to accelerate our efforts to lead the plant-based revolution in healthcare to help the hundreds of millions of people who can benefit.”

The funds will help fuel Kate Farms’ growth to bring its higher standard plant-based liquid nutrition to those in need, while driving overall innovation and expansion of the business. As Kate Farms continues to define the plant-based category in the medical community, the company is experiencing its fourth year of sustained growth. Other key wins include: 

• 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 top-ranked adults and children’s hospitals in the country, Kate Farms 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. 

• McKesson Corporation (MCK NYSE) named Kate Farms its Supplier of the Year in 2020 for its continued product innovation, healthy product pipeline and outstanding growth. 

• Kate Farms 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.

To learn more about Kate Farms, its mission and products, visit www.katefarms.com.

About Kate Farms

Kate Farms was founded in 2012 by parents determined to save their daughter’s life after a diagnosis of failure to thrive and is the #1 recommended plant-based formula. Kate Farms offers medical formulas for children and adults, to be used as sole source or supplemental nutrition, for oral or tube feeding. They are available nationally and eligible for insurance coverage with Medicare, Medicaid, and private insurance. Kate Farms formulas are made for tolerance with easily digested organic pea protein, fiber, and phytonutrients, and without common allergens or artificial sweeteners or flavors. Kate Farms can be accessed in more than 600 US hospitals, including the top children’s hospitals; availability is increasing daily. Visit www.katefarms.com.

For more information, visit www.katefarms.com or follow the company on Instagram, Twitter, Facebook, or LinkedIn.

About Goldman Sachs Merchant Banking Division

Founded in 1869, The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm. Goldman Sachs Merchant Banking Division (MBD) is the primary center for the firm’s long-term principal investing activity. MBD is one of the leading private capital investors in the world with investments across private equity, infrastructure, private debt, growth equity and real estate.

About Kaiser Permanente Ventures

Kaiser Permanente Ventures, the corporate venture capital arm of Kaiser Permanente, is dedicated to forming effective partnerships with innovative companies. Kaiser Permanente Ventures invests predominantly in HCIT and services, as well as diagnostics, drug delivery and therapeutic medical devices.