The US healthcare system has long struggled to address diet-related chronic illnesses affecting nearly half of all adults. However, the discovery of Ozempic and other GLP-1 drugs has brought new hope to the sector. These medications, which help people lose weight, often require patients to see a nutritionist as part of their treatment plan. This has led to a surge in demand for nutrition counseling services, sparking a boom in startups that connect patients with registered dieticians.

Berry Street, a nutrition counseling platform, has just raised a $50 million funding round from investors including Northzone, Sofinova, and FJ Labs. The company, founded by Noah Kotlove, provides registered dieticians with tools to manage their independent practices. Kotlove attributes the growth of his company to the increasing adoption of GLP-1 medications, stating that "GLP1 for dietitians is the biggest tailwind that any single provider type in American health care has ever seen."

Berry Street is not the only startup benefiting from this trend. Fay, another startup that matches independent dieticians with patients, has also raised a $50 million Series B led by Goldman Sachs at a $500 million valuation. This comes just nine months after the company announced its $25 million Series A from General Catalyst and Forerunner Ventures. Nourish, which raised a $35 million Series A last March, is another startup offering similar services.

Kotlove believes that the growth in GLP1 usage is not the only factor driving people to seek nutritional therapy. He notes that most people are unaware that nutrition counseling is typically 100% covered by insurance with $0 out-of-pocket for patients. "It's arguably the most under-utilized benefit in all of the American health system," he said. Startups like Berry Street are making it easier for patients to access these services, allowing registered dieticians to start their own practices and providing more opportunities for patients to use their insurance benefits.

Kotlove's personal experience with nutritional counseling inspired him to start Berry Street. As a serial entrepreneur who has struggled with obesity since childhood, he was surprised by the effectiveness of nutritional therapy in helping him lose 60 pounds and keep it off. He hopes that his company will help many people have similar transformations.

The boom in nutrition counseling startups has significant implications for the healthcare industry. As more people become aware of the benefits of nutritional therapy and the generous insurance coverage available, demand for these services is likely to continue growing. Startups like Berry Street, Fay, and Nourish are well-positioned to capitalize on this trend, providing a valuable service to patients and helping to address the pressing issue of diet-related chronic illnesses.

As the healthcare industry continues to evolve, the role of nutrition counseling is likely to become increasingly important. With the growing adoption of GLP-1 medications and the rise of startups like Berry Street, the future of healthcare looks promising. By providing patients with access to registered dieticians and nutritional therapy, these startups are helping to address a critical gap in the healthcare system and improve outcomes for patients.