What market is experiencing massive growth and has is the focus of only a handful of investors and VCs? I will make it even easier; 1 in 6 people in the US will be a part of this market by 2050. Easier than that, it is a $740 Billion market today: the answer… the senior care market.
What market is experiencing massive growth and has is the focus of only a handful of investors and VCs? I will make it even easier; 1 in 6 people in the US will be a part of this market by 2050. Easier than that, it is a $740 Billion market today: the answer… the senior care market.
I have tried for the past five years to start, grow, and scale my company focused on this market opportunity. Specifically, I have been focused on supporting people living with dementia and their families. Since I started, the need has only grown more prominent with a heart-wrenching problem statement and a challenge that millions of people face daily trying to take care of their dad, grandma, sister, or aunt.
I have given hundreds of startup pitches, taken meetings with angel investors, early-stage venture groups, late-stage venture groups, and corporations. I have also “wasted” my pitches on the big grand stages of conferences or pitch competitions with marketing appeal to an audience full of “ready to invest” investors. Although these events have been exciting to attend and led to excellent company exposure, they have led to zero investors who put money into the company.
I know that startups are hard and all the challenges and risks associated with startups, but it has been insane trying to raise money in this environment.
Before I started my company, I was keenly aware of the past senior care startups and a graveyard of companies who tried and failed for various reasons as well. Some ran out of money, others picked the wrong strategy, and others were just too early (product-market mismatch).
Regardless of the investor perspective and reasoning for not investing in early-stage senior care startups, I have been fortunate to find government-backed grants that encourage investment into startups that have innovative yet risky ideas.
In the past three years, I have learned how to write, apply for, and win government grants such as SBIRs, STTRs, and other vehicles. I have won three grants to date and brought in over $400k in non-dilutive funding. This structured capital has significantly reduced the risk of my innovative ideas and allowed us to survive.
I can’t say that we have made it to the thriving state yet. I hope we can make it there with continued interest in grant applications, but it is still a long road ahead. I often wonder if funding a startup solely through grants is possible and is wise. It is the best and only option we have had with the lack of interest from sophisticated investors.
With all of this said, we are starting to see glimmers of hope and opportunity where new venture capital groups, such as Primetime Partners, and new corporate venture groups, such as Proctor and Gamble Ventures, are focusing on this senior care market. It is promising to see but will take a whole wave of other venture capital groups or investors to support and nurture this growing market.