For years, Sammy Faycurry has been listening to his registered dietitian (RD) mom and sister share their struggles in delivering nutritional counseling. Despite nearly half of all adults in the country being affected by chronic conditions linked to unhealthy diets, health plans have a limited number of in-network registered dieticians. This reality prompted Faycurry to create a platform that would empower RDs like his family members to start their own practices while being covered by insurance.
The Genesis of Fay
Faycurry began working on the startup, Fay, when he was an MBA student at Harvard Business School in 2021. Initially bootstrapped, he later asked Mark Stefanski to join him as a CTO about a year into his effort. After quietly raising $25 million from General Catalyst and Forerunner Ventures, with participation from 1984 and the founders of Grow Therapy and Maven Clinic, Fay emerged from stealth.
The Business-in-a-Box Model
Fay offers RDs a franchise model that has gained popularity among certain types of healthcare providers in recent years. The so-called business-in-box provides practitioners with the tools for running their practices, including filing claims with insurance, receiving payments, and being matched with patients. This innovative approach has been adopted by other startups, such as Grow, a network for therapists that raised an $88 million Series C led by Sequoia, and Nourish, which matches RDs with patients.
A Solution to the Nutrition Care Conundrum
Payers and employers have seen their costs skyrocketing for a long time. While everyone is talking about diet and nutrition, no one has been doing anything about it. Fay aims to change this narrative by connecting RDs with insurance providers and patients. Currently, 1,000 RDs are on its platform, allowing people covered by various insurance providers to use their services weekly or bi-weekly for the price of a regular co-payment.
The Rise of Ozempic and GLP-1 Medicines
Interestingly, many of Fay’s patients are individuals who take Ozempic and other GLP-1 medicines, which are being touted as miracle weight loss drugs. Doctors who prescribe these medications require patients to see a dietician so they learn healthy habits. However, even those who have lost significant amounts of weight still struggle with unhealthy eating habits. For instance, Faycurry mentioned that he has seen people lose 25 pounds but still consume high amounts of cholesterol due to their dietary choices.
Expansion Plans and Future Prospects
Nicole Johnson, a partner at Forerunner Ventures, was impressed with Fay’s execution, stating that the startup grew revenues at an incredibly fast pace while burning very little capital. Fay has big plans for future expansion into providing food for patients, which could revolutionize nutrition care even further.
Key Statistics and Insights
- $25 million: The amount of funding raised by Fay from General Catalyst and Forerunner Ventures
- 1,000: The number of RDs currently on the Fay platform
- 10-15%: The growth rate of the nutrition industry over the past few years
- $88 million: The amount raised in Series C funding by Grow, a network for therapists
The Future of Nutrition Care
Fay’s innovative approach to connecting RDs with insurance providers and patients has the potential to revolutionize nutrition care. With its business-in-a-box model and expansion plans into providing food for patients, Fay is poised to make a significant impact in the industry.
Conclusion
Revolutionizing nutrition care requires innovative solutions that address the current challenges faced by healthcare professionals and patients alike. Fay’s emergence with $25 million funding marks an exciting new chapter in this journey. As the startup continues to grow and expand its services, it is likely to make a significant impact on the lives of millions of people worldwide.