Novo Holdings leads Series C financing of Kate Farms, the market leader in plant-based clinical nutrition

September 19, 2022

Novo Holdings, a leading international life sciences investor, today announces it has led the $75m Series C financing in Kate Farms, the market leader in plant-based clinical nutrition.

The proceeds from the Series C raise will allow Kate Farms to further its investments in advancing plant-based clinical nutrition research, product innovation and expansion into additional channels, all in an effort to enhance access to its high quality, vital nutrition for those living with chronic illnesses and acute conditions.

The company was co-founded in 2012 by Richard and Michelle Laver, the parents of a girl, Kate, who since birth had been failing to thrive and whose own challenges with conventional diets and liquid nutrition spurred her parents to develop plant-based alternatives she could tolerate.

Today, Kate is thriving, and Kate Farms is now the market leader in the emerging and rapidly expanding plant-based clinical nutrition segment, which is addressing the needs and desires of patients, caregivers, and clinicians for more tolerable and higher quality nutrition.

Kate Farms’ products are plant-based organic and clinically demonstrated formulas, made without the common allergens, for tube and oral feeding. Its product portfolio is accessible in more than 95% of U.S. hospitals, and is covered by Medicare, Medicaid and more than 2,000 private insurance plans.

Kartik Dharmadhikari, Partner, Novo Growth, Novo Holdings, said: “We are pleased to partner with Kate Farms and support them in their efforts to meet the nutritional needs of numerous patient populations. We believe our life sciences heritage can serve the company well as it explores additional ways to utilise science and clinical evidence to support plant-based clinical nutrition. Furthermore, this investment aligns seamlessly with our purpose of improving people’s health and the sustainability of society and the planet.”

Brett Matthews, Chairman and CEO of Kate Farms, said: “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.”

The Series C capital raise follows on the heels of the company’s successful Series B fund raise in 2020.

“With the added funds from the Series C, we see a great opportunity for Kate Farms to continue advancing its scientific and clinical research in this field, with support from Novo Holdings and our extensive life science-focused network to provide more research-backed options for patients,” Kartik Dharmadhikari added.

Additional participants in the Series C include current investors Kaiser Permanente Ventures, Goldman Sachs, Main Street Advisors and existing individual investors.

ABOUT KATE FARMS
Kate Farms was founded when a little girl named Kate Laver was failing to thrive because she couldn’t tolerate any of the available tube feeding formulas. Her determined parents Richard and Michelle had the transformative idea to develop a better formula using high quality, organic, plant-based ingredients without the common allergens and ingredients found in traditional formulas. Today, Kate is thriving, and Kate Farms is now the #1 recommended plant-based formula. * Kate Farms offers medical formulas for children and adults, to be used as the sole source or as 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, artificial sweeteners or flavors. Kate Farms can be accessed in more than 800 U.S. hospitals, including the top children’s hospitals, and availability is increasing daily. Visit www.katefarms.com. For more information, follow us on Instagram, Facebook or LinkedIn.

About Novo Holdings A/S
Novo Holdings A/S is a private limited liability company wholly owned by the Novo Nordisk Foundation. It is the holding company of the Novo Group, comprising Novo Nordisk A/S and Novozymes A/S, and is responsible for managing the Novo Nordisk Foundation’s assets.

Novo Holdings is recognised as a leading international life science investor, with a focus on creating long-term value. As a life science investor, Novo Holdings provides seed and venture capital to development-stage companies and takes significant ownership positions in growth and well-established companies. Novo Holdings also manages a broad portfolio of diversified financial assets. Further information: www.novoholdings.dk.

About the Novo Nordisk Foundation
Established in Denmark in 1924, the Novo Nordisk Foundation is an enterprise foundation with philanthropic objectives. The vision of the Foundation is to improve people’s health and the sustainability of society and the planet. The Foundation’s mission is to progress research and innovation in the prevention and treatment of cardiometabolic and infectious diseases as well as to advance knowledge and solutions to support a green transformation of society.
www.novonordiskfonden.dk/en

Further information
Marie-Louise Jersin, Senior Communications Partner, +45 3049 4957, maj@novo.dk