Fruit Street is developing a suite of telemedicine services in areas such as diabetes prevention, virtual primary care, mental health, and chronic disease management. These services are provided to self-insured employers and health plans to improve the health of their population!
Summary
Why Invest in Fruit Street?
- More than 500+ physicians and angel investors have invested over $20 million into Fruit Street
- Physicians and angel investors participate on a physician advisory board via monthly zoom meetings
- Fruit Street already received an offer for $60M, but we chose to grow the revenue further instead of selling
- Revenue tripled from 2018 to 2019 and increased more than 4-fold from 2019 to 2020
- This funding round will be at a $65 million pre-money valuation. Fruit Street has lots of room to grow its valuation!
Problem
An Epidemic of Chronic Disease
By the numbers, chronic disease is one of the most prevalent, persistent, and expensive challenges facing self-insured employers and health plans.
60% of US adults have at least 1 chronic disease
Chronic diseases have staggering direct ($1.1 trillion) and indirect (+$2.6 trillion)
costsPrevalence of chronic disease will increase as obesity continues to rise, with 50% of adults having obesity by 2030
- More than 88 million Americans have prediabetes and are at risk of developing Type 2 diabetes.
- 3 out of 4 Americans are either overweight or obese.
Sources: CDC “Chronic Diseases in America”; Milken report “The Costs of Chronic Disease in the US” 2018; CDC Data Finder on Obesity for 2000; Ward, ZJ et al. NEJM 2019 for 2030 obesity projection
Solution
A Suite of Telemedicine Services
A suite of telemedicine services that address prevention, management and reversal of disease.
Fruit Street's initial telemedicine services was delivery of the CDC's Diabetes Prevention Program via telehealth and live group video conferencing with registered dietitians. This is a 12-month program designed to help individuals with prediabetes lose 5-7% of their weight through diet and lifestyle changes. It incorporates a dietitian video conferencing with a group of 30 participants on Zoom 26 times in a year for 1-hour covering topics such as diet, exercise, sleep, and stress management. Participants are issued a wireless scale, Fitbit, and can take photos of their food in the Fruit Street mobile application to receive feedback from their dietitian. You can watch a video about the program here: https://www.youtube.com/watch?v=rTujudQ_-zE
Our diabetes prevention program is delivered via telehealth and live group video conferencing on Zoom. In the future, Fruit Street is planning to use group video visits to address other chronic diseases such as Type 2 diabetes, hypertension, mental health issues, smoking cessation, and addiction. The company is also developing a virtual primary care platform where primary care physicians would work as full time telemedicine providers for Fruit Street.
Fruit Street aims to develop a suite of telemedicine services that help to improve the health of populations and reduce healthcare costs.
Product
Our Telehealth Delivery of the CDC's Diabetes Prevention Program
- Fruit Street has signed up more than 23,000 people from self-insured employers and health plans who pay for the service as a reimbursed benefit.
- Designed to help 88 million Americans with prediabetes prevent Type 2 diabetes.
- 12-month program delivered via telehealth and group video conferencing with 1 Registered Dietitian and 30 participants.
- 26 1-hour long classes delivered via Zoom covering topics such as diet, exercise, sleep, stress management, grocery shopping, cooking, and emotion.
- Participants issued a wireless scale, Fitbit, and can take photos of their food in our mobile application.
- Fruit Street has validated its clinical outcomes by receiving Full Recognition from the CDC. This means participants are consistently achieving 5 percent average weight loss for participants that participate for at least 9 months.
- Fruit Street offers its diabetes prevention program with milestone based pricing to employers and health plans.
- The company plans to bring the diabetes prevention program to consumers for $50 per month as well in 2021.
Watch to learn more about the program:
Business Model
Flexibility in Plans
Traction
Building on Growth
Revenue
From 2014 to 2017, the company was providing telemedicine software for $200 per month to dietitians and physicians to use with patients in their existing practice. In 2018, we pivoted from providing telemedicine software into providing telemedicine services. This pivoted resulted in the revenue increasing 300-400% on an annual basis.
The first service we launched was the diabetes prevention program and our first employer customer which was a Fortune 500 employer. Our second contract for diabetes prevention was with a commercial health plan and then a nationally recognized airline.
Fruit Street has now enrolled more than 23,000 participants into our diabetes prevention program.
In 2022, additional revenue will come from our expanded suite of telemedicine services such as virtual primary care and programs for other chronic diseases.
Fruit Street generated approximately $500K in revenue in 2019, $2 million in 2020, and is projecting to generate between $4-6 million in revenue in 2021. The company has already surpassed $2 million in revenue in 2021.
Fruit Street received a $60M acquisition offer last year, but decided to decline and continue growing our revenue.
Market
Employers + Health Plans
Company Vision
Our Purpose
Fruit Street Health aims to improve the health of populations through high quality telemedicine services that achieve the triple aim of reduced healthcare costs, better clinical outcomes, and improved patient experience.
In particular, we believe that group video conferencing and virtual primary care are powerful tools for addressing chronic diseases, at scale.
Press
Press Highlights
Founders
Laurence Girard, CEO & Founder
Laurence Girard is the CEO and Founder of Fruit Street Health which he has been working on since founding the company in 2014. Laurence received his Bachelor of Liberal Arts in Extension Studies at Harvard University. He was recently accepted to the Program for Leadership Development at Harvard Business School.
