AARP (previously the American Affiliation of Retired Individuals) has launched its AgeTech Investor Community, which goals to assist startups get off the bottom within the AgeTech market – which targets the getting old inhabitants.
AARP’s AgeTech Investor Community is a collaboration with AgeTech Capital, increasing AARP’s mission to help and develop AgeTech startups by increasing funding alternatives. Highlighted on the upcoming CES 2025, AgeTech was born out of the truth that most expertise merchandise are focused at younger adults. However as boomers and others age, the necessity for tech merchandise to deal with a spectrum of demographics makes extra advertising sense and is pressing.
“The purpose is to assist these nice startups scale their services and products, and in flip, it will assist create social affect to assist hundreds of thousands of individuals throughout the nation who will profit from these new providers.” want entry to,” stated Andy Miller, senior. vice chairman of innovation and product improvement at AARP Innovation Labs, stated in an interview with GamesBeat. “On this new collaboration, we began focusing on traders. So we’ve over 95 enterprise capitalists who’ve joined the collaboration.
I noticed the necessity for this tech firsthand once I tried to search out technological merchandise to assist take care of my getting old mom. I used to be the only carer on this case – as is the case with many households immediately – whereas nonetheless needing to be there for the opposite household as nicely. However I spotted that my mom did not embrace fashionable expertise—she could not determine how you can use an iPhone—and plenty of merchandise did not meet her wants.
There are lots of issues that tech nonetheless cannot do. My mom died of dementia in 2024, however I nonetheless see a wider want. Over the past decade, I’ve seen a number of startups take a stab at this and I’ve written about them alongside the way in which. Nevertheless it nonetheless seems like an underserved market.
Many applied sciences aimed on the aged use the TV or phone as a communication instrument. Issues like telehealth can work utilizing these instruments, however establishing providers in a senior’s house is usually a problem. Some assisted dwelling services do a greater job with this, however not all the time. Some applied sciences invariably goal caregivers, who are sometimes “sandwiched” between aged dad and mom and their kids when it comes to caregiving duties.
Edge Tech Investor Community
Miller stated the brand new AARP community and its crew of business consultants and innovators are dedicated to driving change within the AgeTech sector with visionary traders who wish to help and form the evolving AgeTech house.
For traders, AgeTech Investor Community members have unique entry to a curated number of high-potential AgeTech startups, complete due diligence help, a vibrant group of like-minded traders, and alternatives to make a significant affect.
And for entrepreneurs, startups have entry to a large community of traders, mentoring alternatives, and useful sources to assist them develop their enterprise by funding alternatives and help.
AARP started working with the startup seven years in the past, Andy Miller, senior vice chairman of innovation and product improvement, stated in an interview. About 5 years in the past, he began investing in startups after going by its program, a personalized accelerator. About three years in the past, in 2021, he launched the AgeTech Collaborative.
Miller noticed Sequence A traders writing huge checks. Whereas many startups can elevate $2 million or $3 million, they’re typically not prepared for $10 million or $12 million and the financial circumstances are usually not nice for this sort of fundraising. However startups want some type of seed spherical growth from smaller funds, Miller stated.
“Over the past couple of years, we’re beginning to see that change. And we’re seeing some new funds now with the ability to elevate cash and we have seen how startups in this type of tweener stage. might help,” he stated. “And the idea of age tech is de facto beginning to catch on when it comes to its financial affect. Folks over 50 are spending cash and utilizing expertise. It is within the highlight.”
AARP’s AgeTech Collaborative goals to enhance the lives of individuals as they age. The initiative brings collectively a one-of-a-kind ecosystem of main startups, forward-thinking traders, enlightened establishments, and inventive testbeds – all working to carry edge-tech improvements to market.
“It is now develop into the world’s largest ecosystem for edge-tech-based corporations at almost 600 corporations,” Miller stated. “It ranges from among the largest organizations, just like the Fortune 10, to fully-fledged assisted dwelling services. And there are about 200 startups which have joined the co-op and gone by our program.
AARP has invested about 57% previously 3.5 years, or greater than 100 investments now.
AARP basis
AARP is the most important nonprofit, nonpartisan advocacy affiliation within the U.S. for individuals over age 50. AARP has greater than 38 million members within the U.S.
AARP sees AgeTech as something that can assist individuals age nicely, and the corporate acknowledges the massive want to make use of expertise to take care of individuals. Their mission is to empower individuals to decide on how they age by discovering innovation, tech, and product options and providers that help us at all ages based mostly on our personal preferences. do
AARP’s AgeTech Collaborative launched in 2021 and is now the most important AgeTech ecosystem on the planet, connecting 600 corporations together with among the largest corporations globally and greater than 90 enterprise capitalists. AARP has a big presence at CES every year for its AgeTech options and help.
AARP’s priorities for AgeTech options embrace:
- Good house tech (77% of individuals wish to age of their house and never assisted dwelling), Miller stated. These sensible properties require various sensors, resembling detecting whether or not somebody has fallen into the house or wandered off the property. It can be focused at sensible house assisted dwelling.
- Motion + Staying energetic. Offering individuals with exoskeletons to offer them extra energy to maneuver round has come a great distance lately, however it’s nonetheless widespread to see the expertise used.
- Psychological well being. One of many largest fears individuals have as they age shouldn’t be dropping their automotive keys and their independence. With dementia so prevalent, the worry is now that they’ll lose their minds, Miller stated.
- Social engagement + leisure. Social isolation is a number one explanation for loneliness amongst older adults, and tech can be utilized to fight it, resembling “utilizing music as medication,” Miller stated. Digital actuality journey and different functions maintain promise on this space, he stated.
The quantity across the getting old inhabitants
Miller stated 12,000 individuals within the U.S. are turning 65 each day, and other people age 50+ contribute $8.3 trillion in financial affect within the U.S.
“If you stay in India and China, Japan, the numbers are much more staggering. After which when you concentrate on the caregiving a part of it, it isn’t simply these of us who’re aged. can deal with,” Miller stated. “So expertise is one thing that we’re seeking to assist fill that hole. The EdgeTech Investor Community goes to offer angel traders entry to a really distinctive dealflow pipeline.
Folks age 50 and older within the U.S. will spend $77 billion on expertise in 2022 — a quantity anticipated to develop to almost $120 billion in 2030, in line with AARP.
By 2030, the primary millennials will flip 50, giving the 50+ share of financial affect within the US to $12 trillion (this may be the third largest GDP on the planet) and globally. $35 trillion. By 2050, these aged 50+ are estimated to account for almost $100 trillion in international financial affect.
“That is why we have had so many organizations associate with us,” Miller stated. “If corporations aren’t already promoting to the over-50 inhabitants, they must as a result of that is the place the cash has gone. The massive fantasy is that older individuals do not use tech. With regards to client spending on expertise With regards to the only largest age group, 50- to 60-year-olds make them the most important group of expertise early adopters.
How this system works
One useful factor this community will create is a curated deal stream pipeline.
“What’s attention-grabbing about Pipeline is that to work with AARP as a startup, it’s a must to go to one in every of our occasions and make it to the stage. You do not have to win, however it’s a must to. It has to get that far after which we are able to choose and select the individuals we wish to invite into our accelerator program,” Miller stated.
The accelerator program lasts eight weeks, and that is when AARP makes its resolution on whether or not or to not make investments.
“We’re spending extra time with a startup than any investor would spend earlier than making a choice,” Miller stated. “By the point you run the gauntlet, if you’ll, are you able to make it to the purpose the place we’ll put you in entrance of an angel. We won’t utterly de-risk any funding. , however traders can get a extremely good sense of how extremely rated these corporations are once they take a look at them.”
In some circumstances, startups can have pilot packages and industrial transactions that AARP helps facilitate.
“We’re constructing a two-way market, and we’re now actively partaking with the angel group,” Miller stated.
An instance of a partnership
Belief & Will is the main on-line property planning firm in America on a mission to make sure that each American leaves a long-lasting legacy. The agency is eliminating the painful strategy of going by probate court docket by specializing in digital property planning that’s complete however requires no legal professional.
Belief & Will has joined AARP by a partnership with the AgeTech Collaborative. In 2021, Belief & Will joined forces with AARP’s AgeTech Collaborative Community to assist drive innovation for the 50+ group, collaborating with startups, traders and business leaders.
As an unique associate of AARP, Belief & Will gives AARP members a 20% low cost on property planning providers, making it simpler for them to create wills and trusts. AARP additionally has a strategic funding in trusts and wills.
AgeTech startups supported by AARP embrace VoiceIt, Lance, Kino, Joylux, Springrose, 1 True Well being, 6Degrees, Dentity, DeepLook Medica, De Oro Units, Abby by Gogotech, Addition, Advosense, Chas, Elektra Well being, Ageless Innovation, E included. Environment friendly, Gameboard, Givers, Good Belief, Grapefruit Well being and SingFit.
At CES, AARP can have roughly 13,000 sq. ft of exhibit house on the Venetian as a part of the digital well being, sensible house and way of life expertise sectors. AARP is that includes 30 corporations in cubicles spanning varied classes. AARP is holding an AgeTech Summit with CTA, Maria Shriver as speaker. And on January 10, AARP will maintain a live-pitch occasion for startups, with money prizes.
