Personalized Nutrition Startups Secure Major Funding as Demand for Metabolic Health Solutions Grows

In a significant development for the personalized nutrition sector, two startups focusing on connecting consumers with dietitians and nutrition counseling have each secured $50 million in funding. This influx of capital underscores the growing investor appetite for metabolic health solutions and the increasing demand for preventive, nutrition-led care in the healthcare industry.

Fay Raises $50 Million in Series B Funding

Fay, a startup that connects individuals with insurance-covered registered dietitians, has raised a $50 million series B round led by Goldman Sachs at a $500 million valuation. The round also saw participation from existing investors General Catalyst and Forerunner, bringing Fay's total funding to $75 million.

Founded in 2022, Fay has rapidly expanded its network to over 2,300 registered dietitians and now integrates with major health plans including United Healthcare, Aetna CVS, Blue Cross, Anthem, Cigna, Optum, and Humana. The company claims its services are available to 200 million Americans, offering personalized nutrition and lifestyle counseling with minimal out-of-pocket costs.

Sammy Faycurry, co-founder and CEO of Fay, highlighted the company's AI-driven platform, stating, "Our AI-driven platform gives dietitians 'superpowers,' automating burdens like insurance claims, scheduling, and patient follow-ups so they can focus on providing intimate and thoughtful care."

Berry Street Secures $50 Million Investment

Simultaneously, Berry Street, founded in 2023 by Noah Kotlove and Jesse Rose, has secured a $50 million investment from a group of investors including Northzone, Sofina, and FJ Labs. The startup has developed a nutrition counseling platform and provides a network of over 1,000 registered dietitians with tools for managing independent practices.

Berry Street aims to address the growing nutrition crisis in America by connecting patients with registered dietitians for one-on-one counseling, typically fully covered by insurance. The company's programs pair dietitian care with an AI-supported patient-facing app.

Noah Kotlove, co-founder and CEO of Berry Street, emphasized the importance of their mission, saying, "We started Berry Street to empower dietitians to build private practices and ultimately establish their rightful role on every American's care team."

Industry Implications and Future Outlook

The substantial investments in Fay and Berry Street reflect a broader trend in the healthcare industry towards preventive, nutrition-focused care. With about half of all American adults—117 million individuals—having one or more preventable chronic diseases related to poor eating patterns and physical inactivity, these startups see an opportunity to shift healthcare's focus.

The growth of GLP-1 medications is also seen as a potential tailwind for personalized nutrition startups. Wendy Xiao, partner at Berry Street investor Northzone, noted, "The data around diet behavior change that Berry Street is building will help them win in this market with payers who are renewing their interest in this category due to the tremendous impact of GLP-1s."

As these companies continue to expand their offerings and partnerships, they are poised to play a significant role in reshaping the healthcare journey for millions of Americans whose lives can be improved through better nutrition. The integration of AI-powered tools, insurance coverage, and personalized care plans represents a new frontier in the fight against chronic diseases and the promotion of overall health and well-being.