We know that the market for agetech is growing. More people are living longer, and that exposes them to the various diseases and infirmities of old age. Creating innovative new products, however, is not easy. It takes time and it takes money, and it’s hard to know where to start (https://longevity.technology/news/five-key-steps-to-getting-a-agetech-startup-funded/).
There are various venture capitalist firms investing in agetech all around the world. Flint Capital, for example, is supporting at least 45 new companies. It’s still incredibly difficult to keep up with demand. Estimates suggest that there will be a 0.4 billion increase in people over 60 during the 2020s. By 2034, there are likely to be more old people than children. Plus, if you consider the impact of the pandemic, we’re only just starting to glimpse the potential increase in long-term health problems.
Despite this, the companies that dominate agetech still tend to be highly specialized. They have their area of expertise and often fail to develop a more innovative portfolio. It’s a complicated market, but it could be worth trillions if new startups manage to get their products right.
Venture capitalists have invested more than $2.5 billion in agetech since 2018, close to half of it in 2020 alone. The money is there; startups just need to figure out how to access it. Flint Capital has recommendations on how they can improve their chances.
First, the startup needs to know which niche of the agetech market they’re aiming to join, whether it’s health and medication, independence, senior living support, wellness or solutions for home care providers. They need to be able to identify the core needs of their niche and their target population, such as caregiver shortages.
Then they need to consider everyone involved – not just the elderly person but also family, friends, healthcare providers, public and governmental bodies, and even younger people making early plans for old age.
What exactly do these populations want? How can you encourage older people with cash to spare to purchase your product? Are you aware of their needs beyond basic healthcare, such as combating isolation, ensuring independence and financial security, or helping with transportation? Have you considered how your tech will work for people with differing levels of digital literacy?
There’s a lot of potential in agetech, but there are a wide range of factors to consider before you can apply for funding.
