Kevin Yang

2000

What More Old People Means for Venture

2012

2020

2030

People above 50 years of age in the US in millions

77

104

118

132

Why should we take note of people above 50? Why does this even matter for Venture?
Lets break down what the next generation of people over 50 entails. This generation is the
generation with the highest net worths, the generation that wants to learn more, to stay
active, to feel productive, to live life to its fullest. This next generation of people over 50 will
spend 3 trillion dollars annually; this generation of people over 50 will know how to take
advantage of the cutting edge technology offers. The unprecedented size and
opportunities this demographic brings means Venture should take note and modify
investment theses to account for the 50+ market.

Finding Opportunities Tailored to 50+

Products Specific for 50+

After 50, age related conditions like lost of
hearing and memory means the need for
vitality products will grow.
The increase in required medication for
people above 50 will result in the need for
better medication management
The need for constant vital monitoring means
there will be a need for less intrusive vital
monitoring devices.
The increase in people above 50 will require
better and more end of life care.
More hospital visits than ever before will mean
health care will need to become less
fragmented, more optimized, better designed
and less focused on the sickest, frailest.

Market Optimization for 50+

More people over 50 using cutting edge
technology will mean that from the initial
design all demographics must be optimized
for.
Because the highest net worth lies in the 50+
and because the 50+ will grow substantially,
prioritization of younger demographics will
need to be reduced- switching to a
multifaceted approach.
With the growth of IoT design that
understands aesthetics and usability will
increase 50+ users.
With more users and more devices across
various fields the need for a better user
interface will mean better NLP, Voice
Recognition, and AI.

Investment Frameworks
So we know that this market is growing. We know that there are two major opportunities that build upon
this trend; products designed specifically for the 50+ market and products designed to be accessible by
anyone old or young.
How can Venture Capitalists capitalize on this trend? First lets look at themes: there have existed
frameworks built upon themes ranging from clean tech to enterprise software to social media to big
data. Lets work on a framework for the 50+ theme.
In class we have seen a few investment frameworks:
(Cloud) Invest in data center infrastructure, cloud management, and infrastructure security,
(What Cloud Enables) Invest in Saas companies disrupting on-premise incumbents,
(Cheaper Start Online) 3 ways to make money online: search, e-commerce, and adtech. Invest in
upstarts in e-commerce and adtech with small money in to minimize risk and exposure followed by
larger investments as inflections occur
A few more specific themes we can split 50+ into:
(Products Tailored to 50+)
(All Accessible Products)
(Enhancing Interface with Tech)
Investment Frameworks we can build with these themes:
(Products Tailored to 50+) Invest in products that target the needs of the 50+ that would not have
been possible before without recent advances in technology. Invest in companies that will disrupt health
care for the 50+.
(All Accessible Products) Invest in products that help make currently unaccessible products
accessible to every person.
(Enhancing Interface with Tech) Invest in products that are disrupting the way users interface with
technology.

Investment Examples
Eye drop dispenser that automatically administers, tracks, and monitors eye drop
prescriptions
Smart clothing that prevents bones breaking after a fall
Meal planning to help encourage healthier eating
Text based UI with low learning curve that wraps around traditional GUI
Social website that helps 50+ stay connected and active
Marketing product that helps target 50+ with unconventional techniques
Health care startup that helps users navigate the health care system replacing the need for
a health advisor

Current VC Data
Lets see which of the top VCs include anything about the 50+ segment in their investment theses.
Andreessen Horowitz: Hinting towards the optimization of health care which has direct implications for the
50+. Invested in Honor, a senior home care platform headquartered in SF. Invested in Omada, an online
digital health program that coordinates everything people at risk for chronic disease need to embrace
lasting change. What Omada, does that is really cool is that they not only provide a full time coach to
increase engagement but also all the equipment used to track stats are sent to the user pre-synced. No
setup means a reduced learning curve, increasing accessibility.
Khosla Ventures: Comments by Khosla regarding health care can be generalized into a few major
themes:
Medicine requires disruption;
Entrepreneurial technologists focused on consumers are ideally poised to deliver this;
Most doctors are so enmeshed and invested in the current system that they are more likely to be part
of the problem than part of the solution;
In an ideal future state, most care would be delivered by robust computer algorithms (Dr.A) and
doctors would no longer be required.
These themes would directly impact the 50+ market for smarter and better health care, however none
specifically target just that market. Khosla has invested in AliveCor, a company that enables users to take
control of their heart health by transforming their cellphone into a clinical quality electrocardiogram. Aloha,
a health and wellness company that informs and motivates users to live a healthier life. Catalia Health, a
company working to improve patients health. Cellscope, company that enables at home disease
diagnosis. Khosla has many investments that will make living health easier for everyone.
GreyLock Partners: The most notable investment from greylock was in a company called Grand Rounds.
This company helps users by connecting them with doctors who will be able to offer an expert opinion to
the patient. This not only helps patients make a more informed decision but it would also help 50+ quickly
gain knowledge and decide a course of action.
NEA: Looking at NEAs sector for Health Care we can see some similarities with the investment
frameworks that I brought up. They have split their theme into three groups: Biopharma, Health Care IT,
and Medical Devices. Where notable goals include optimizing patient therapy and drug discovery, and
capitalizing on new medical devices. One notable investment is WellTok, whose mission is to optimize
users health

Axioms

Investment Framework

Investment Examples

Current Examples