AAA Kate Farms’ series B reaches $60m

Kate Farms’ series B reaches $60m

Kate Farms, a US-based provider of plant-based medical formulas, has added $9m to a series B round featuring healthcare provider Kaiser Permanente that now totals $60m.

Boutique investment bank Main Street Advisors provided the extension through investment fund MSA Enterprises.

Investment banking firm Goldman Sachs led the $51m first close in November 2020, with participation from Kaiser Permanente subsidiary Kaiser Permanente Ventures and unnamed existing investors.

Founded in 2011, Kate Farms provides a range of plant-based formulas used for tube feeding as part of the treatment of chronic illnesses. It also sells nutrition shakes made for people with less severe or short-term conditions.

The company said its products are distributed across more than 95% of hospitals in the United States and they are covered by more than 2,000 insurance plans.

Brett Matthews, Kate Farms’ CEO, invested an undisclosed amount in the company in 2015 before he assumed his role.

In April 2020, Kate Farms closed a $23m series A-1 round led by Silver Lake co-founder David Roux that included individual investors John Hammergren, Gregg Engles, William Loomis and Kristin Loomis as well as board members Carol Ammon, Celeste Clark, Jeff Jacobs, Pete Nicholas and Robert Zollars.

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