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Nutrition Counseling Startups Rising with GLP-1 Drugs: Berry Street and Fay Each Raise $50M preview image

Nutrition Counseling Startups Rising with GLP-1 Drugs: Berry Street and Fay Each Raise $50M

1. The U.S. Healthcare System and the Chronic Disease Problem

The U.S. healthcare system has struggled for decades to address diet-related chronic diseases, a problem so severe that it affects nearly half of all American adults. However, in recent years, the emergence of GLP-1 drugs like Ozempic has begun to change the landscape. These drugs aid in weight loss, and many people are improving their health through them.

2. The Connection Between GLP-1 Drugs and Nutrition Counseling

GLP-1 drugs don't end with simply taking medication. Doctors often recommend that patients also receive nutrition counseling. This is to maximize the drug's effectiveness and help patients maintain healthy eating habits.

"GLP-1 is perhaps the single biggest tailwind for dietitians as a provider type in the U.S. healthcare system."

  • Noah Kotlove, Co-founder and CEO of Berry Street

3. Berry Street: Growth of a Nutrition Counseling Platform

Berry Street is a platform that provides tools for dietitians to run independent practices. The company has been growing rapidly, raising $50 million in funding just two years after its founding. Investors include Northzone, Sofina, and FJ Labs.

"We've been growing incredibly fast. This market is enormous."

  • Noah Kotlove

Berry Street particularly focuses on helping people access nutrition counseling through their insurance benefits. Since many people didn't realize that nutrition counseling is fully covered by insurance, the platform has been instrumental in raising awareness and improving access.

4. Fay: Another Rising Nutrition Counseling Startup

Fay, which offers a similar service to Berry Street, is also noteworthy. Fay is a platform that connects independent dietitians with patients and recently raised a $50 million Series B round, valuing the company at $500 million. This came just nine months after a $25 million Series A, marking rapid growth.

5. Insurance Coverage for Nutrition Counseling: An Undervalued Benefit

Kotlove points out that many people don't realize that nutrition counseling is 100% covered by insurance. In fact, it is considered one of the most undervalued benefits in the U.S. healthcare system.

"If you have commercial health insurance, you likely have very generous benefits for seeing a dietitian. This is probably the most undervalued benefit in the U.S. healthcare system."

  • Noah Kotlove

Berry Street specifically supports full-time hospital dietitians in starting independent practices during evenings and weekends. This gives patients more opportunities and allows them to take advantage of their insurance benefits.

6. Kotlove's Personal Story and the Birth of Berry Street

Berry Street's founder Kotlove was inspired by his personal experience. He had been clinically obese since childhood and repeatedly tried and failed with various methods. Then, at his doctor's recommendation, he saw a dietitian -- though he was initially skeptical.

"I already knew what healthy and unhealthy foods were, so I didn't think a dietitian needed to tell me that again."

  • Noah Kotlove

But after starting nutrition counseling, he experienced a profound transformation.

"The counseling was like therapy. It wasn't about relationships with family or partners -- it was about my relationship with food."

  • Noah Kotlove

As a result, he lost 60 pounds (about 27 kg) and has maintained that weight. Even more remarkable was that all the counseling sessions were fully covered by insurance. This experience was the catalyst for founding Berry Street.

"I want to help as many people as possible experience the transformation I went through."

  • Noah Kotlove

7. The Future of Nutrition Counseling Startups

With the rise of GLP-1 drugs, nutrition counseling startups like Berry Street and Fay are growing rapidly. They go beyond simple weight loss, helping people build healthy relationships with food and maximize their insurance benefits.

Key Terms

  • GLP-1 Drugs: Medications that aid weight loss (e.g., Ozempic)
  • Nutrition Counseling: Treatment that helps build healthy eating habits
  • Insurance Coverage: 100% coverage for nutrition counseling
  • Berry Street: Platform supporting dietitian practices
  • Fay: Platform connecting dietitians with patients
  • Undervalued Healthcare Benefit: Insurance coverage for nutrition counseling

This article sheds light on the role of startups in elevating the importance and accessibility of nutrition counseling, going beyond just the efficacy of drugs. The fact that many people can receive counseling for free through insurance is particularly noteworthy. Kotlove's personal story illustrates just how transformative these services can be. "Changing your relationship with food" -- that is the core value these startups pursue.