Investment Recommendation: Artificial Intelligence in US Elder Care Startup Space for a VC Firm

Recently, we consulted one of our clients to analyze artificial intelligence start-up investment opportunity in the US elder care industry. We carried out:
  1. Industry Analysis: Market size, opportunities, threats, market segmentation
  2. Competitor Analysis: National and Global
  3. Recommendation and Investment Rationale
  4. Next Steps before Investing (Valuing the company)
  5. Aspects to Monitor Investment Post Investment
Some of our findings from the study:
MARKET ANALYSIS
Big Market Opportunity:
  • 106 million Americans over 50 years age represent a transformative force that will generate more than $13.5 trillion in annual economic activity by 2032.
  • Baby boomers will account for a 73% increase in the 65+ years population in US. And, more than 30 million boomers will be managing more than one chronic health condition by 2030
SMLXL

Looming Shortage of Caregivers:
  • By 2023, there will be shortage of 151,000 paid direct caregivers and 3.8 million unpaid family caregivers
  • Anti-immigration stance of the current Trump government to further aggravate the problem as about 20% of the caregivers in US at present are immigrants
SMLXL

ARTIFICIAL INTELLIGENCE (AI) SOLUTIONS
1. Artificial Intelligence Sensors and Analyzers:
Various sensors are deployed mostly through wearable devices and/or cameras to monitor the health and movements of the elders. In some cases there are also apps instead of wearable devices. The apps or wearable device also reminds patients of taking medication when due. The data from such sensors are then streamed into an artificial intelligence software to process and analyze key patterns and detect any anomalies. Apart from several usual medical measures of health, unique behavioral patterns (e.g. brushing, walking, eating, sleeping) of the individual are studies and patterns are established through machine learning. And all activities are analyzed any deviations from standard are noted and reported along with the possible risk that put the patient to (e.g. risk of a fall, heart disease, cancer, mental disorder, depression).
2. Companion Robots:
Robots are currently being used to at as companions and help for elders. Some of the features of the robots currently i the market include:
  • Two-way communication between a senior and caregiver to keep the elder engaged and entertained (such as playing games, answering questions, making suggestions on outdoor activities, updating on happenings around the world, and providing weather and family updates)
  • Can be controlled by elders through a remote control to even perform certain tasks such as bringing certain things or switching on/off electrical appliances and electronic equipment, opening door, and talking to people through camera (for bed-ridden elders)
  • Send out medication reminders and provide rudimentary social interaction
  • Robots still need quite a bit of advancement to be able to substitute a human caregiver, however the industry is moving in the right direction by addressing some of the pressing challenges such as ethical issues, patient privacy, robot’s reliability and accuracy.
Companies Analyzed:
Artificial Intelligence Sensors and Analyzers:
  • CarePredict’s AI Elder Care platform
  • CareAngel
  • Blue Willow Systems
  • Lively
  • Wellnest
  • grandCARE
Companion Robots:
  • INF Robotics
  • OhmniLabs
  • Hasbro
  • Fraunhofer IPA
  • Honda
  • Intuition Robotics
  • CT Asia Robotics
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