DayTwo

Israeli healthtech startup DayTwo has permanently shut down, resulting in layoffs for its remaining few dozen employees. At its peak, the company, which specialized in personalized nutrition kits for diabetics, employed hundreds. The closure follows a significant downsizing about a year ago and comes after the company raised $85 million but ultimately failed to navigate market challenges. The shutdown was announced to staff in August 2024.

Israeli healthtech startup DayTwo, which had developed personalized nutrition kits for diabetic patients using stool sample analysis, has undergone a dramatic restructuring, laying off over 75% of its workforce over the past year. The company, which employed 150 people in 2022, now retains only 35 employees—20 in Israel and 15 in the U.S.—as it winds down most operations. Facing an unsustainable business model despite raising $85 million, primarily from co-founder Marius Nacht, DayTwo is now focused on supporting existing customers and seeking to sell its technology. The restructuring, reported in July 2023, followed challenges in achieving profitability and mixed results in weight loss outcomes, despite some success in improving blood sugar levels.

Israeli healthtech startup DayTwo, which develops AI-driven personalized nutrition solutions for metabolic diseases like diabetes, is laying off dozens of employees in both Israel and the U.S. The company, which currently employs around 150 people, cited the deteriorating macroeconomic climate as the reason for the restructuring. Announced in September 2022, the layoffs are part of a strategic shift to focus its efforts primarily on the U.S. market. DayTwo, backed by $85 million in total funding, aims to improve health outcomes by leveraging gut microbiome analysis and virtual care.