The Opportunity

Disruptive Demographics

Globally, the number of people over the age of 65 is expected to triple in the next 30 years, from 524 million to 1.5 billion. In the United States alone, 10,000 people turn 65 every day and by 2030, almost 1 in 5 people living in the United States will be 65 or older.

The older adult population is the largest consumer of healthcare and the fastest growing segment of the broader consumer market.  The Longevity Economy, defined as the sum of all economic activity serving the needs of Americans over age 50, is pegged at $7.1 trillion today and is expected to reach over $13.5 trillion by 2032.

Concurrently, technology (eg sensors, tech-enabled services, artificial intelligence) continues to get cheaper, more ubiquitous and more powerful. We believe that many of the most compelling use cases for the latest technology innovations are those focused on the aging demographic.

Recognizing that aging and care are very personal experiences, we believe that the most successful companies will strike the important balance between high-tech and high-touch. Historically underserved by technology, older consumers, caregivers and senior care providers are increasingly connected and are adopting technology to address their needs. Generator Ventures was formed to be the premier partner for companies that are leveraging technology to transform the aging experience.

In addition, the US healthcare system is being redesigned to decrease costs and improve health outcomes by better aligning incentives. The changing incentive structures are redefining care delivery with a particular focus on post-acute care, care management and provision of quality care in the least expensive setting possible. The emergence of risk sharing and risk bearing entities creates new demand for outcomes data and tech-enabled care models and new potential payers who now have a vested interest in delivering high quality, cost-effective care. Generator Ventures’ investment thesis capitalizes on opportunities created by the shift to value-based care.

We believe that when high-tech, high-touch solutions are built to address the massive opportunities and challenges of the aging population, all stakeholders − seniors, service providers, society and investors − will succeed.

Areas of Focus

Falls

  • 1 in 3 Americans 65+ fall each year costing $34B+ direct medical costs per year
  • Leading cause of injury-related visits to the ER in the U.S.; primary cause of accidental deaths for people 65+

     

Family Caregiving

  • 43M Americans care for someone over the age of 50; in 2013 their work accounted for $470B worth of unpaid care
  • 10-15% are long-distance, 30%+ report depression, and 34% use technology daily to help perform their duties


Incontinence

  • 50% of long-term care residents have urinary incontinence
  • $20B in direct costs due to urinary incontinence annually


Rehabilitation

  • Annually, there are 15M strokes globally, 85% of patients need rehabilitation  
  • 1 in 3 people 65+ need assistance with at least one activity of daily living

Aging in Place / Home Care

  • 92% of older adults state a preference to “Age in Place” yet there will be a major shortfall of caregivers available to take care of them
  • 1.6M additional direct care workers needed by 2020; Personal-care and home-health aides will account for 10% of the new jobs created in the US between 2016 and 2026

Alzheimer’s Disease / Memory Care

  • 6th leading cause of death in the United States, costing $226B this year and $1.1T by 2050
  • 85+ are the fastest growing segment of the population; the incidence of cognitive impairment among this age group is greater than 33%

Chronic Care Management  

  • 2 out of 3 people over 65 have 2 or more chronic conditions
  • 3 out of 4 of healthcare dollars are spent on chronic care management

End of Life

  • 25% of Medicare dollars are spent on the last year of life
  • Only 6% of seriously ill patients want aggressive life sustaining treatment at the end of life