Original version posted on May 25th, 2023 on Medium.
The stats are astonishing.
We are only beginning to grasp the full impact that COVID has had on our lives over the past three years. We know we’re getting lonelier. We’ve heard of the labor shortages. We’ve seen our friends moving away from cities.
And while these trends affect all our society, there is one group that has been particularly impacted: seniors.
While the ripple effects of the last three years are still unfolding, one thing is clear — people over the age of 65 are living through a generational amount of upheaval. And with so much change, new problems are arising every day.
How can we solve these issues?
The answer is simple — we have to revolutionize senior care.
In this article, we’ll explore the issues facing seniors and highlight the companies working to solve them. We’ll also look ahead and speculate on the future of senior care.
The problem
We’ll present the problems seniors are facing through three truly unbelievable stats.
Trend 1: Seniors are opting to age at home.
Unbelievable stat #1: “Over the last 30 years, the average age of elderly people leaving their home for full-time, managed care has increased from 74 to 90, and the average distance between the elderly and the closest adult child has jumped from 32 miles to 56 miles.” (TechCrunch)
Seniors are increasingly choosing to age in their own homes, rather than nursing homes or other senior care facilities. According to the AARP, ~80% of seniors now want to age-in-place. Additionally, their kids are moving further away, leaving seniors without a built-in care network.
These shifts present massive challenges for the senior care infrastructure and have prompted a bunch of new startups to enter the fold.
Trend 2: Seniors are getting lonelier.
Unbelievable stat #2: According to the U.S. Surgeon General, loneliness is a greater indicator of premature death than smoking 15 cigarettes EVERY DAY (NYT).
Simply put, we are facing a loneliness epidemic. And it transcends age, ethnicity, and culture.
Seniors have been hit particularly hard. For example, half of British people over 65 now consider their television or pet to be their main source of company (Rex Woodbury). As they retire and their kids move away, seniors often find themselves lacking social companionship.
Trend 3: There is a serious shortage of home healthcare workers.
Unbelievable stat #3: BCG estimates that the current caregiver labor shortage will result in $290B in lost GDP per year in the U.S. by 2030 (BCG).
Since COVID, there has been a mass exodus from home healthcare jobs, as individuals gravitate towards better-paying, more flexible jobs.
Startups working in the home health space must be focused on growing the supply of caregivers. Papa is a good example of innovation on this side of the market — they removed some of the less desirable parts of caregiving (bathroom chores & administering medicine) to attract college students on the supply side.
Market definition
When we talk about senior care, we categorize it as several distinct sub-segments, as shown in the market map above. We generally only focus on startups in North America & Western Europe and exclude a lot of B2B healthcare startups since they’re less in our studio focus area.
Market segments:
- Caregiver marketplaces: These marketplaces help seniors find caregivers. In the early 2010s, these attempts generally resembled typical service marketplaces. Newer companies in this space have gained traction by bringing their own gig-like supply side of caregivers and selling their caregiving offerings to health plans & employers (Papa, Naborforce).
- Caregiver support: These startups provide support for caregivers and are typically sold to employers for their employee caregivers. These come in a couple of flavors, such as concierge support systems for caregivers (Wellthy, Grayce), e-commerce platforms (Carewell), or task apps (Milo).
- Senior community: These startups work to help seniors stay connected. There are a wide range of models in this segment, from online classes (GetSetUp), to in-person events (Hank), to chatbots (Pyx Health).
- Fintech for senior care: These startups provide fintech & banking products tailored to seniors. This segment is a good example of different product entry points, from ensuring financial safety (Carefull) to providing tax breaks (Aidaly).
- Fitness: These startups work on fitness solutions for seniors, often through some sort of virtual group fitness class / program.
We exclude some categories from our definition, primarily in segments such as B2B software, health insurance, and wearable devices for seniors.
Novel companies in the space
Here are the recent attempts that we find particularly novel:
- Papa (founded in 2017): Papa has a lot of innovative components, none more powerful than curating a brand new gig-like supply side.
- Aidaly (founded in 2021): Aidaly is building a fintech and caregiving training platform, all by reframing tax credits as a paycheck.
- Carewell (founded in 2017): Carewell is an online retailer just for home health supplies.
- Umbrella (founded in 2017, acquired in 2021): Umbrella was an on-demand home maintenance membership service with seniors on both sides of the marketplace.
- Carefull (founded in 2019): Carefull protects senior finances from outside threats and fraud.
- Hank (founded in 2020): Hank is a digital community platform for “empty nesters.” They facilitate in-person group events by seniors, for seniors.
So what’s next?
What could senior care look like in 20 years? Here are some areas we think are promising to explore:
- Indirect community platforms: We LOVE startups that solve loneliness in indirect ways. Could a startup in real estate or local discovery succeed by bringing people together? Could a job platform for seniors help tangentially solve loneliness?
- Caregiver support: Recent funding rounds by Wellthy, Homethrive, and ianacare suggest that employee caregivers need help. What else can we do to support them? Could an AI product like Milo be a promising angle?
- Concierge caregiving + creative finance: Could a model like Upside or Truehold combine concierge-like care for seniors with a creative finance product like a HELOC?
- AI chatbots: There has recently been a surge of AI chatbots, in areas from companionship to dating. Could an AI chatbot for seniors significantly improve outcomes? Could an audio / video platform be more powerful?
Our parents supported us for years. Now it’s our turn.
How can we help?
