Axios Pro Exclusive Content

Exclusive: Foodsmart secures $10 million, bringing Series C to $40M

an illustration of a 100 dollar bill on a fork

Illustration: Aïda Amer/Axios

Foodsmart, a food-as-medicine startup, added $10 million to its Series C, bringing the total to about $40 million, CEO Jason Langheier tells Axios exclusively.

Why it matters: The infusion will further its Foodscripts program, which aims to help patients with nutrition-related chronic illnesses — a task the U.S. Department of Health and Human Services is also taking on.

Details: The additional backing comes from Advocate Health, Memorial Hermann Health System, Intermountain Health, the American College of Cardiology, and Glen Tullman.

Plus: "We are currently fundraising for our Series D, which we hope to close sometime in the second quarter," Langheier says, declining to disclose the size of the raise.

  • The company is profitable and has a 70% plus gross margin, he notes, declining to disclose revenue.

How it works: Foodsmart's telehealth platform connects dietitians with patients via phone or video to discuss personalized nutrition programs.

  • Members can use the Foodsmart App, which has a marketplace that lets members peruse recipes, compare grocery prices and have food delivered.
  • Meanwhile, its Foodscripts program — initially launching across the three health system investors — mimics a pharmacy prescription. Patients receive a referral to Foodsmart dietitians and subsidized meals tailored to their condition(s).

Driving the news: HHS is hosting an all-day summit today on nutrition and health as it prepares a strategy to reduce food-related chronic diseases.

By the numbers: Foodsmart supports more than 2 million members across the U.S.

  • According to the company, 42% of members with food insecurity using its program become food-secure within six months.
  • The company also says its program helps yield $40 in per-member-per-month (PMPM) savings across a full health plan population, and $353 PMPM savings for prescription diabetes medications.
  • Meanwhile, 6 in 10 Americans adults face chronic health conditions like diabetes, hypertension, hyperlipidemia, and obesity.

State of play: The food-as-medicine sector continues to see investor and strategic interest.

Go deeper