Increased funding for startups serving the elderly – Crunchbase News
Over the past 100 years, the average human lifespan has practically doubled. And as life expectancy increases, so does the elderly population. By 2050, more than a fifth of Americans are expected to be 65 and over. An American born today, meanwhile, can expect to live to be nearly 80 years old.
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In short, we get older. And startups and venture capitalists – always mindful of growing markets – are stepping up efforts to serve our rapidly growing aging population.
So far this year, VCs have invested more than half a billion dollars in U.S. startups focused on senior care and home health care, according to data from Crunchbase. The funded companies include Dad, a platform that connects older people with people to offer companionship and help; Ruby, a startup that helps seniors improve the security of their homes; and Harmonize, a remote care platform focused on people with serious illnesses.
The funding comes as seniors increasingly choose to stay put, with Survey data showing that three quarters of the elderly prefer to continue living at home as long as possible. Space received another boost in 2020 as the pandemic fueled demand for home and remote healthcare.
“There are so many tailwinds coming out of this pandemic,” said Helen Adeosun, Founder and CEO of Cambridge, Massachusetts CareAcademy, a venture-funded start-up that offers training to home care providers. “One is that we as a country have discovered that a lot can be done at home, including health care.”
Start-up investors have certainly discovered this. In the past five calendar years, venture capitalists have invested more than $ 2.5 billion in senior care and home care startups. While not all home health care startups are specifically focused on seniors, they are powerful users on most platforms, accounting for a disproportionate share of overall healthcare spending.
Using the Crunchbase data, we break down the numbers in the table below:
The investment is made in stages
Elderly care and remote healthcare are seeing activity at all stages of the startup investment spectrum, from seed to post-IPO and pre-IPO stages. There’s even a unicorn or two in the mix.
For remote care, the most funded private company is Health Expedition, a Denver-based remote and mobile healthcare provider that has raised more than $ 400 million in funding known to date. Seniors are a basic demographic target for the startup, which touts its partnerships with Medicare providers.
Other well-funded startups include Honor, a technology platform for finding skilled home care providers that has attracted over $ 250 million in venture capital, AlayaCare, a home care software platform with approximately $ 110 million in funding, and Papa, which has raised over $ 90 million.
There is also a lot of activity at the seed stage. Recent seed funding recipients include Aloe Care Health, provider of a voice-activated medical alert system for the elderly and caregivers, Serenity Engage, a HIPAA Compliant Messaging Application Platform for Elderly Care, and Grayce, a tool for family members navigating the care needs of aging parents.
To find out where startup funding takes place through the stages, we’ve compiled a list of funded startups for 2021:
Political action could give new impetus
Political action could give new impetus to the elderly care space. Earlier this year, the Biden administration called on Congress to spend $ 400 billion to expand access to home or community care for elderly parents and people with disabilities.
In addition to expanding home care, the administration says it seeks to improve pay for home care workers, a workforce disproportionately made up of women of color who “have been underpaid. and undervalued for far too long. “
This is a policy goal that may require the help of entrepreneurs, said CareAcademy’s Adeosun, noting that there is currently a lack of professional infrastructure for direct care workers to develop skills that can increase opportunities. employment and wages. His startup is looking to address this problem by offering online courses for elderly care professionals on topics such as working with dementia patients, transporting elderly people in wheelchairs, and caring for survivors of an elderly person. Stroke.
As startups mature, PSPCs, acquirers and public procurement are watching
Of course, the elderly care sector is not only of interest to the corporate audience. Public investors are also watching the space, with the aim of expanding stock options in fast-growing companies.
A few specialist acquisition companies have already sprung up with plans to acquire a promising player in the field of elderly care. Senior Connect Acquisition, a PSPC was launched at the end of last year through UnitedHealth Group founder Richard burke, seeks to invest $ 300 million in the acquisition and IPO of a company in the elderly care and home health care market. Another SPAC, EQ Health Acquisition Corp., a $ 220 million put to work and lists home and palliative care providers among its target areas.
The most recent IPO in the space home care provider Aveanna Health, offers services for all age groups. Stocks have been trading mostly flat since the Atlanta-based company debuted in April with a market cap of around $ 2.2 billion.
For now, discussions about new offerings for senior-focused companies are ahead of actual transactions. But for those who view demographic trends as the primary driver of market demand, it is clear that this is a growing area. And as our population ages, we could use more help from younger companies with innovative approaches to age gracefully.
Drawing: Dom guzman
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