5 Innovative US AgeTech Startups Serving the Elderly

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Today, more start-ups are shifting focus from millennials to aging baby boomers, chasing a demographic whose annual economic activity is worth over $9 trillion in 2019, according to AARP. This fast-growing aging baby-boomer population also needs tech solutions for everything from health monitoring to social communication, and American companies are stepping up to tap into this underserved market. Here we are listing some innovative agetech start-ups and their business models that are shaping the longevity economy. Of course, the list is not exhaustive.

1. Papa

Credit: Papa CEO,Andrew Parker’s Interview on 100Huantley

Papa was founded in 2017 after CEO Andrew Parker recognized the extreme difficulty associated with juggling daily life and senior family members’ needs. The company offers on-demand service that pairs older adults and families with “Papa Pals” who provide companionship and assistance with everyday tasks. Papa’s services have become even more important as COVID-19 lockdowns have put more distance between older adults and their families. In September 2020, Papa, which has already operated in over 17 states, raised $18 million in a Series B funding round to help provide its service in additional markets.

Papa’s Business Model

  • Products & Services: Offering on-demand services to connect elderly Americans and families with physical and virtual companions.
  • Major Pain Points: Tackling loneliness and social isolation among seniors.
  • Revenue Model: Commission-based.
  • Total Founding Raised: US$31.2M / Series B.

2. Honor Technology

Credit: Honour CEO Seth Sternberg Interview on This Week in Startup

By applying platform technologies and scalable business models, Honor is one of the most promising agetech start-ups that bring fresh innovations and disrupt the in-home care industry. Originally founded as an on-demand home care company, Honor has since pivoted its business strategy to one based on partnerships with independently owned and operated home care agencies. Through its partnership model, Honor uses its technology infrastructure to take over billing, scheduling, staffing, and other back-office functions for a negotiated share of agency revenue.

The San Francisco-based Honor announced in October 2020 that it has raised $140 million in Series D funding, led by Baillie Gifford, plus funds and accounts advised by T. Rowe Price Associates Inc. To date, Honor has raised $255 million since its launch in 2014.

Honor’s Business Model

  • Products & Services: A caregiving app that connects older adults with caregivers for short-term jobs.
  • Major Pain Points:  Quality care and patient satisfaction.
  • Revenue Model: Revenue-sharing model with partnering home-care agencies.
  • Total Founding Raised: US$255M / Series D.

3. Silvernest: Secure Roomate Finder

Founded in 2015, the Denver-based platform Silvernest bills itself as a roommate matching service for baby boomers, retirees, and empty nesters. Using a proprietary algorithm, the Colorado tech start-up pairs these homeowners with housemates for long-term home-sharing. In September 2018, the company raised a $3 million Series A round investment from Incenter to add new functionality and features and increase its user base.

Silvernest’s Business Model

  • Products & Services: A room-matching service that pairs aging homeowners with roommates and tools for long-term home-sharing.
  • Major Pain Points:  Social isolation and extra sources of income for seniors.
  • Revenue Model: Taking commission from booking fees..
  • Total Founding Raised: US$5.6M

4. Chef For Seniors

Founded in 2013 by Barrett Allman, Chefs For Seniors is a Madison -based start-up that sends chefs into the homes of senior citizens to cook them nutritious meals. Since its inception, Chefs For Seniors has prepared over 590,000 meals for seniors across the US and currently has 50+ franchises open throughout the country. The Madison company, Chefs for Seniors, participated in Batch 17 of the 500 Start-ups business accelerator in 2016.

Chef for Seniors’ Business Model

  • Products & Services: A room-matching service that pairs aging homeowners with roommates and tools for long-term home-sharing.
  • Major Pain Points:  Older adults struggling with meal preparation.
  • Revenue Model: Franchising fees
  • Total Founding Raised: US$125K / Seed

5. Rendever Health

Rendever, another innovative AgeTech startup founded in 2016 by MIT alumni, uses virtual reality in nursing … facilities to help older adults dealing with depression and social isolation. The company’s main product is its resident engagement platform, which offers users a variety of games and activities like virtual scuba diving and hiking, and includes content from diverse sources that let users travel almost anywhere in the world. Overall, Rendever works with more than 100 senior living communities, recently expanding its footprint to Canada and Australia.

Rendever’s Business Model:

  • Products & Services: A research-based virtual reality platform that provides cognitive stimulation, socialization, and therapy for older adults.
  • Major Pain Points:  Tackling loneliness and social isolation among seniors.
  • Revenue Model: Charge partnering senior-living communities subscription fees
  • Total Founding Raised: US$40K / Grant

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