Kate Farms, a plant-based supplier of liquid meal formulas, has raised $23 million in a new round of funding, according tomedia. The company’s products are reported lying to hospitals and medical facilities across the United States as nutritional supplements for patients who cannot digest solid foods.
In response to a new round of financing, Brett Matthews, the company’s chairman and CEO, said the new money would allow the company to increase production to meet the huge new needs of consumers and healthcare providers.
The company was founded by Richard Laver and Michelle Laver, who originally developed the formula for their daughter, Kate. It is understood that Kate has cerebral palsy, can not eat solid food and can not absorb the market through the tube of formula food.
Matthews’ son, who suffers from upper respiratory and autoimmune diseases, was originally introduced to the company as a client. “My son is very ill… Food is crucial to his recovery. I know a lot about products and food products such as pharmaceuticals, and I’ve really invested in it. “
Since that initial investment, Matthews’s responsibility for the company has grown, first as chairman of Kate’s Farm board and eventually as CEO of the company.
Throughout Kate’s farm’s history, much of the money raised from institutional investors has come from individual investors, and the new financing is no exception. The money came from a number of heavyweight investors, including Silver Lake co-founder David Roux, former McKesson chairman and CEO John Hammergren, former chairman and CEO Gregg Engles, former chairman and CEO of WhiteWave Foods, former CHIEF executive of Lazard, william Loomis, and Kristin Loomis, founder and executive director of the HV-6 Foundation.
It is understood that the company’s plant-based non-GMO meals have been clinically proven to improve nutrition for children and adults who need tube feeding. One of the studies, based on a clinical trial by the Atlanta Gastroenterology Association, was published in the journal American Society for Parenteral and Nutrition, Matthews said.
Matthews points out that in the U.S., about 700,000 people need to eat through tubes, and another 150 million people can eat the company’s products to solve less serious nutritional problems. It’s a U.S. market of about $3 billion and a $10 billion global market.
But Kate Farm has a bigger goal. The company said in a statement that the consumer market for plant-based dairy alternatives was $21 billion in 2017 and is expected to exceed $37.5 billion by 2024. According to UBS Investments, the value of meat substitutes is expected to rise from $4.6 billion in 2018 to $85 billion in 2030 over the next 10 years
“Our focus right now is on the medical side, but you can see where it can go,” Matthews said. “