28/09/2022

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Five key steps to getting an AgeTech startup funded – Longevity.Technology

Five key steps to getting an AgeTech startup funded – Longevity.Technology

Flint Capital husband or wife reveals five techniques to funding achievement for AgeTech startups.

By 2030, 1 in 6 folks in the world will be aged 60 or in excess of. The excellent of daily life of the elder population is now in the highlight extra than at any time, due to the extended isolation and health and fitness threats connected to the COVID-19 pandemic. How does the tech industry react, and which AgeTech startups does the economic system require in the extensive operate?

Longevity.Know-how: To solution these thoughts, we asked Flint Capital’s Sergey Gribov for his viewpoint. Flint is an global VC fund that invests across Europe, Israel, and the U.S. with a portfolio of 45 firms including healthtech startups Flo Overall health, Antidote Well being, XRHealth, and agetech startup Sensi.AI. With deep experience in the healthtech and AgeTech marketplaces, Gribov is a board member and advisor at XRHealth and Sensi.AI.

The entire world is still to comprehend the comprehensive affect of the pandemic on people’s lives – and on the ageing populace in specific – but scientists by now foresee a amount of damaging outcomes. Aside from the difficulties of the illness itself for individuals who skilled it, the elderly will have to offer with a lot less particular interactions, troubles accessing regular expert services and clinical enable, and reduction of bodily activity that can severely diminish good quality of everyday living.

The world is yet to comprehend the full impact of the pandemic on people’s lives – and on the aging population in particular – but researchers already anticipate a number of negative outcomes.
Sergey Gribov, associate – Flint Money

In the meantime in the upcoming 10 a long time, the 60+ population will enhance from 1 billion in 2020 to 1.4 billion. In the U.S., the aged will account for half of GDP by 2032 and outnumber young children by 2034. Purely from a tech enterprise viewpoint, we see it as a $37 trillion longevity overall economy symbolizing the sum of all economic action for the needs of older adults. This economic system has a continually rising consumer foundation and a established of wants accelerated by the pandemic, although getting drastically underserved by AgeTech startups and VCs alike.
Why is there a hole in between source and need? The AgeTech industry is conservative and fragmented, with just about every segment dominated by niche firms, which are gradual in adopting innovation. That’s why, the business owners who try to start a startup in this discipline are often steered absent by the go-to-market difficulties. Nonetheless, those who make your mind up to improve an AgeTech company in 2022 stand a fantastic prospect to profit from a valuable section ripe for the choosing – and here is why.

The increase of AgeTech 

The ageing population is progressively energetic, healthy and has money to expend. A overall quantity of acquired merchandise and products and services of Us residents aged 50+ is projected to maximize from $7.6 trillion in 2018 to $27.5 trillion by 2050.
Most importantly, goal individuals of the section are predicted to spend big on tech options – $200 billion by 2030 – that will increase the longevity and excellent of their life. In accordance to a latest research, older adults are increasingly adopting technologies (smartphones, tablets, wearables, and many others.) and ecommerce shopping.
Preemptively addressing the needs of this rapidly escalating share of digital consumers, AgeTech answers are nicely positioned to take the guide in the longevity economic system. We assume that the companies starting up in the phase now will be completely ready to scale inside two to a few several years. And in a five-12 months timeframe, we will see quite a few new AgeTech unicorns which are going to be developed in the future 12 months.
When compared to the a lot more generic wellness tech, significantly less VCs are enjoying in the AgeTech phase. Nevertheless, the AgeTech industry, which is envisioned to attain $2 trillion globally, is absolutely on the investors’ radar.
More than the past five decades, VCs have poured in excess of $2.5 billion into the segment in the US by yourself, with approximately fifty percent of investments produced in 2020. In the to start with 50 percent of 2021, U.S. startups targeted on eldercare and house health care been given one more $500M in undertaking funds, in accordance to Crunchbase.
Additionally, on the AgeTech industry map, 45 providers elevated hundreds of hundreds of thousands of dollars in 2020. This is in line with an all round VC pattern for the more substantial funding rounds, brought about by the enhance in liquidity because of to the pandemic.
To keep the momentum and aid additional expansion, AgeTech startups will need to leverage the learnings from both the present gamers, but also from the other conservative industries that professional a important disruption in the latest yrs, this sort of as healthcare or logistics.

5 techniques to get funded

In buy to realize success in facilitating innovation for the growing old populace, the founders of AgeTech startups require to prioritise their endeavours.

    1. Locate a area of interest

      Broadly, the AgeTech market place has a handful of sub-segments, with the biggest types staying:

      Those people types of solutions help elders fulfill the main desires and obtain high-quality care, from triggering alarms to providing daily support, and generate a tech spine for the longevity overall economy. When these segments are expected to experienced and consolidate in 2022, none of them has a clear recognized chief still.

    2. Have an understanding of the main needs

      The most urgent want to be resolved by AgeTech is an expected caregiver scarcity – according to AARP Public Policy Institute, the selection of potential spouse and children caregivers for every human being aged 80+ is expected to drop from 7.1 in 2010 to 4.1 in 2030. At the very same time, most seniors favor to age at property, which necessitates obtainable treatment providers, protection and extended independence. Technologies improvements can assistance elders continue to be inside of the comfort of their houses with considerably less reliance on individual caregivers.
      Looking broader, as the electronic-to start with buyers grow older, they would want to hold the exact level of electronic presence, but with the products and services that are most applicable to their new life style. We currently see some initiatives, this sort of as the joint undertaking by GreatCall and Lyft in the US, which allow for older clients to purchase transportation by phone with one simply click of a button.

    3. Cater for the preferences

      However, for seniors eager to adapt new technologies, AgeTech does not only have to be about more substantial buttons or louder audio. The up coming era of the market-defining AgeTech alternatives will be not only the ones that more mature grownups require – but somewhat what they want. VCs are in consensus that the most promising method in the phase appears to be like like focusing on more mature older people with money to spend for themselves.
      Therefore, we hope significant progress premiums in segments, which prioritise not only elders’ principal requirements, but also options for a fuller and happier existence. For instance, giving robotic companions (Tombot), tackling isolation (Papa), courting (OurTime) or retirement setting up (Retirable), are all illustrations of solutions going over and above the bare minimum amount of what seniors have been imagined to typically demand.
      All round, throughout both main and added requirements, The White Residence Place of work of Science & Technological innovation defines 5 purposeful areas wherever engineering can make a optimistic alter for the elders:

      • Obtain to healthcare, such as telemedicine, healthy way of life and wellness.
      • Cognition, which includes discovering and coaching, supporting cognitive wellbeing, fiscal wellness and stability, as nicely as employment.
      • Independence, such as autonomous mobility, treatment, hygiene, diet and checking vitals.
      • Conversation, which includes listening to and vision guidance, staying linked, as properly as socialising in the communities.
      • Transportation, including both equally self-driving and general public transportation.
    4. Take into consideration all stakeholders

      Taking this a single-move additional, AgeTech answers do not have to concentrate just on the wants and specifications of the seniors. A whole caregiver circle – loved ones, community authorities, healthcare, service companies – need to be deemed as critical stakeholders, as it is in their remit to purchase tech remedies to boost the high quality of lifestyle for the getting older population.
      In addition, AgeTech startups can preemptively concentrate on older people in their 30s-40s. The investigate demonstrates that millennials and Gen-Z are starting off to acquire treatment of their daily life programs right after retirement considerably before than their mother and father, that’s why are analyzing the technological know-how possibilities. Understanding the technological innovation usage patterns of the youthful adults can also enable to future evidence the remedies for the extensive operate.

    5. Advance the AgeTech

      When it comes to technologies, voice-dependent person interfaces, robotics, and  VR/AR lead the route in the AgeTech phase. For illustration, companies like Lifepod use a virtual assistant to retain seniors engaged and secure at property.
      VCs will anticipate a funding-deserving AgeTech solution to address the connectivity constraints, be accessible for numerous concentrations of digital literacy and effortless to set up on a array of devices, as properly as to be price-helpful – the two for the community and non-public sector.
      Finally, integrating use situations, which are most relevant for the older electronic clients, with point out-of-the-art tech and design and style/UX system centred all around their routines and wants will create a profitable mixture for AgeTech startups in 2022.

    Disclaimer: Flint Capital’s portfolio involves Sensi.ai & XRhealth.