Nutrition startup Fay has just entrusted a Series B fundraiser led through Goldman Growth Equity.
Fay, which connects patients with covered registered dietitians through its insurance, raised a $50 million circular valuing the startup at $500 million, which is a five-fold build on Fay’s Series A valuation, according to the company. The precursor also joined the Series B circular.
Fay works with employers and fitness plans to help patients locate virtual or in-person nutrition counseling covered through their insurance. The startup also offers facilities to registered dietitians on its platform, such as helping those providers determine their qualifications with insurance corporations so they can agree to reimbursement.
Co-founders Sammy Faycurry and Mark Stefanski told Business Insider that Fay has noticed the expansion since going into stealth in May 2024 with $25 million in funding.
“From the beginning, we were headed to put the product first,” Fay co-founder Mark Stefanski told BI. The startup has brought several features with AI, adding a tool to assist dietitians who temporarily generate meal plans. “Allowing them to do in seconds or minimums what would take them differently,” Stefanski said.
Forerunner Ventures led Fay A. ‘s $20 million series. Founded in 2022, Fay is also subsidized through VC 1984, corporate investors, and fellow angels from fitness therapy and Maven clinic.
Employers and fitness plans seem interested in the paintings with startups offering lifestyle interventions for obesity, especially such as the use of GLP-1 drugs.
Fay said in his statement that the GLP-1 explosion has spurred registered dietitians as doctors looking to prescribe like ozempic throughout nutritional care.
It is the only nutrition startup that is attracting the attention of investors for this purpose. Medal platform Nourish raised a $35 million Series A in March 2024, led through index companies, while Culina Health raised a $7. 9 million Series A in December, led through Healthworx, the investment arm of CareFirst Bluecross Blueshild.
Later-stage startups should also be involved in the action. Both Virta Health and Omada Health have provided year-on-year obesity care throughout their diabetes programs.
OMADA CEO Sean Duffy told BI in October that weight loss care has the ultimate popular gateway for new Omada customers.
“The bulant that we get from benefit buyers, the first query is, tell me about the GLP-1 care track. And that’s what turns into other conversations,” Duffy said.
Fay offers its nonprofit nutritionist within 50 états. la Startup launched its patient-facing app in October, and its co-founders said they plan to upload several new features this year.
The startup says it also plans to use the Series B budget for its ability to gather and report knowledge about patient outcomes and burden savings to providers and payers.
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