US nutrition company Kate Farms has raised $75 million for its plant-based formulas in a Series C funding round led by life science investor Novo Holdings.
Kate Farms produces organic formulas for tube feeding for people with chronic illnesses, as well as oral nutrition shakes for people with short-term or milder illnesses.
In its seventh year of growth, the company plans to use the money to innovate in its product portfolio, develop new products and open up new channels.
Recent product launches include a special formula for diabetes and the only organic and plant-based closed system hanging bag for use in hospitals.
The investment follows the innovator’s successful Series B funding round in 2020, in which it received “significant” support from a local investor.
Brett Matthews, Chairman and CEO of Kate Farms, said: “Despite the challenging global economic environment, I am pleased that Novo Holdings and our existing investors appreciate the significant potential of plant-based nutrition and Kate Farms’ leadership in this fast-growing market.
“Our brand has deep-rooted values, which means finding the right investment partners is a crucial decision for us. Novo Holdings’ investment in Kate Farms will enable us to create more innovative products, expand into new markets and continue to serve the patients who depend on us for their nutrition, as well as thousands of healthcare providers.”
Novo Holdings, which has also backed US cell-cultured breast milk company Biomilq, said the investment “aligns seamlessly with our goal of improving human health and the sustainability of society and the planet.”
Kartik Dharmadhikari, Partner in Growth at Novo Holdings, said: “We are pleased to partner with Kate Farms and support her efforts to meet the nutritional needs of diverse patient populations.
“We believe our life sciences heritage can serve the company well as it explores additional opportunities to leverage scientific and clinical knowledge to support plant-based clinical nutrition.”
In addition to Novo Holdings, attendees included current investors Kaiser Permanente Ventures, Goldman Sachs Asset Management, Main Street Advisors and existing individual investors.
Kate Farms was founded in 2011 by parents Michelle and Richard Laver who were inspired to create an organic, plant-based liquid meal replacement formula for their daughter Kate, who suffers from cerebral palsy.
Its products are certified organic, vegan, gluten-free, and kosher, and are available in more than 95% of US hospitals.
Concluding the round of funding, Richard said: “Michelle and I started Kate Farms to help our daughter Kate who was unable to thrive.
“This investment by Novo Holdings and other notable investors is a milestone and market proof that the product we created for Kate has helped so many.
“We are confident that Kate Farms will continue to create breakthrough nutritional products to help patients thrive.”