New StartUp Health and AARP report takes a closer look at the top venture capitalists making investments that impact the 50+ population and the hottest areas of investment. Already, some of the country’s top venture capitalists are making big investments in companies relevant to the 50+ market. And our data indicates that the trend may just be beginning.
Big and Growing Market Opportunity for VCs
Baby Boomers make up 44% of the US population and more than 10,000 enter the 50+ demographic daily. Collectively, they spend $3.5 trillion a year. By 2018, breakthrough technologies, innovative services and disruptive business models will benefit more than 100 million people 50+ and represent $20 billion in revenue in the US alone.
Key takeaways include:
- Though the number of software-only digital health companies more than quadrupled, funding in devices and wearables grew 102% from 2012 to 2013, accounting for 32% of all digital health investment
- Aging with vitality, vital sign monitoring and care navigation received the greatest amount of digital health VC funding from 2010 to 2013
- Physical fitness and care navigation have seen the most deal action (by volume) from the top investors funding the 50+ market since 2010
- Vital sign monitoring, care navigation and social engagement have the greatest number of interested VCs among the 50+ market opportunities
- Funding in companies relevant to the 50+ market represents 53% of all digital health investment dollars and is growing
- Seed or Series A deals comprised half of the deals from 2010-2013 in companies related to the 50+ market
- San Francisco Bay Area and the Northeast lead digital health funding activity with more than 41% of total funding from 2010-2013
The data presented herein is from StartUp Health Insights, which was gathered from public non-grant funding information from SEC filings, company press releases, CrunchBase, AngelList, and other news sources as of April 14, 2014. The data spans from January 1, 2010 through December 31, 2013.
Some of the deals presented in sub-sector analyses may have been subject to double counting because of overlapping markets. VCs included in the top list comprised those that invested in the most deals within the 50+ market from 2010-2013.