GLP-1 Startups: Berry Street & Fay Secure $50M Funding

The Rising Demand for Nutritional Counseling

For many years, the American healthcare landscape has faced significant challenges in effectively addressing the prevalence of chronic illnesses linked to dietary habits, impacting nearly half of the adult population.

Recent advancements, notably the introduction of medications like Ozempic and other GLP-1 drugs designed to aid in weight loss, have initiated a shift in this dynamic.

GLP-1 Drugs and the Role of Dietitians

While insurance coverage is generally available for these medications, healthcare providers often integrate nutritional counseling into patient treatment protocols.

Noah Kotlove, co-founder and CEO of Berry Street, a nutrition counseling platform established two years ago, asserts that “GLP-1 drugs represent the most substantial positive influence for any specific provider category within the American healthcare system.”

Berry Street's Growth and Funding

Berry Street furnishes registered dietitians with the necessary resources to manage independent practices.

The company has recently secured $50 million in funding from investors including Northzone, Sofina, and FJ Labs.

Kotlove emphasizes the company’s rapid expansion, characterizing the market as “very large.”

A Booming Market for Nutrition Counseling Startups

Berry Street is among a growing number of nutrition counseling startups experiencing a surge in activity due to the increased use of GLP-1 medications.

Fay, a company mirroring Berry Street’s model of connecting independent dietitians with patients, announced a $50 million Series B funding round led by Goldman Sachs, achieving a $500 million valuation.

This funding followed a $25 million Series A announcement just nine months prior, backed by General Catalyst and Forerunner Ventures.

Nourish, which secured a $35 million Series A last March, provides comparable services.

Beyond GLP-1: Insurance Coverage as a Driver

Kotlove points out that the increased adoption of GLP-1 medications isn’t the sole catalyst for heightened demand for nutritional therapy.

He explains that individuals with commercial health insurance typically benefit from comprehensive coverage for dietitian consultations.

A significant number of people are unaware that nutrition counseling is often fully covered by insurance, resulting in no out-of-pocket expenses for patients.

Kotlove describes this as “arguably the most underutilized benefit within the entire American health system.”

Accessibility and Convenience

Startups like Berry Street are streamlining access to registered dietitian counseling for individuals covered by health insurance and focused on improving their dietary habits.

Berry Street empowers registered dietitians, many of whom maintain full-time positions in clinical settings, to establish their own practices during evenings or weekends.

This expanded availability allows patients to more readily utilize a benefit they may not have previously known existed.

Personal Experience and Inspiration

Kotlove, an experienced entrepreneur with a background in developing a successful alcohol recovery application, has firsthand experience with the advantages of nutritional counseling.

He reveals that he has struggled with clinical obesity since childhood.

“I attempted numerous strategies to address my unhealthy eating patterns,” he stated, adding that he reached his highest weight before a physician suggested consulting a dietitian.

Initially, he questioned the necessity of a dietitian, believing he already possessed knowledge of healthy food choices.

However, he decided to pursue nutritional therapy and was surprised by its positive impact.

“The experience resembled therapy, but instead of discussing relationships with family or partners, the focus was on my relationship with food,” he explained.

Transformative Results and Company Vision

Kotlove successfully lost 60 pounds and has maintained that weight loss.

He was also surprised to learn that all his sessions were completely covered by his insurance plan.

This personal transformation served as the impetus for the creation of Berry Street.

Kotlove expresses his hope that his company will facilitate similar positive changes for many others.