AARP, previously the American Association of Retired Persons, has launched an initiative aimed at supporting startup growth in the AgeTech industry, which focuses on addressing the needs of older adults.
The AARP’s AgeTech Investor Community, in partnership with AgeTech Capital, amplifies its mission to empower AgeTech startups by expanding opportunities for funding through strategic collaborations. As the reality set in that many cutting-edge products were primarily designed with a youthful demographic in mind, AgeTech emerged as a response to this disparity. As baby boomers and other age groups mature, the imperative to address the entire tech-savvy spectrum across demographics gains momentum, making targeted marketing a pressing priority.
“By supporting startups, we aim to help scale their services, ultimately creating social impact that can benefit millions of families nationwide who lack access to these innovative companies,” said Andy Miller, Senior VP of Innovation and Product Development at AARP Innovation Labs, in a conversation with GamesBeat. “In our latest collaboration, we shifted our attention to traders.” As a result, our coalition has grown to include more than 95 leading enterprise capital firms that have collectively joined forces.
As a caregiver, I recognized the pressing need for this technology firsthand, after struggling to find suitable tools to support my aging mother’s needs. As the primary caregiver in my situation – a common scenario in modern households – I had to balance my responsibilities with staying up-to-date on another household’s needs. Despite my efforts, I found that my mom was not open to adopting modern technology – she struggled to grasp the basics of using an iPhone, and many products failed to meet her needs.
Despite technological advancements, there remain numerous limitations that technology still cannot overcome. My mother passed away from dementia in 2024; despite this, I still recognize the pressing need. For the past decade, I’ve witnessed countless startups attempt to tackle this challenge, chronicling their efforts along the way. Despite this seeming anomaly, the demand for such services remains unfulfilled.
Many applied sciences catering to seniors leverage television or mobile phones as communication platforms. While telehealth has the potential to thrive with such tools, the challenge lies in setting up compatible systems within an elderly person’s home. While some assisted living facilities excel in providing these amenities, it’s not always the standard practice. Caregivers often find themselves sandwiched between the responsibilities of caring for their aging parents and their own children, juggling these multiple roles with aplomb.
AgeTech Investor Community
A team of experts at the newly established AARP community is committed to revolutionizing the AgeTech industry by forging powerful connections between cutting-edge startups and forward-thinking investors who share a passion for shaping the future of this rapidly evolving sector, according to Miller.
In the exclusive AgeTech Investor Community, traders gain privileged access to a carefully selected portfolio of high-growth AgeTech startups, accompanied by comprehensive due diligence support, a dynamic network of fellow investors, and innovative opportunities designed to generate substantial impact.
For entrepreneurs, startups gain access to an extensive network of traders, personalized mentorship options, and valuable resources to propel their businesses forward through innovative funding opportunities and support.
Andy Miller, Senior Vice President of Improvements and Product Innovation at AARP, noted during a recent interview that his organization started collaborating with startups approximately seven years ago. Approximately five years ago, the organization started investing in startups that had completed its bespoke accelerator programme. Approximately three years ago, in 2021, the AgeTech Collaborative was launched.
Miller observed that traders in Sequence A have been issuing significantly higher payments. While some startups can successfully raise $2 million or $3 million, they often struggle to scale their funding strategy to accommodate larger sums such as $10 million or $12 million, which presents unique financial challenges. Despite startups’ desires for a larger, spherical investment from smaller funds, Miller emphasized their need for seed capital.
In recent years, a noticeable shift has been underway. “We’re witnessing a surge in new funds that can effectively bridge the gap, enabling startups to accelerate their growth trajectory. We’ve been exploring ways to support these ‘tweener’ companies as they navigate this critical juncture.” “As the concept of AgeTech begins to gain traction, its financial impact becomes increasingly evident.” Fifty-year-olds are actively investing their money and leveraging technology to enhance their lifestyles. It’s within the highlight.”
The organization’s primary goal is to significantly improve the overall quality of life for seniors as they navigate the aging process. Here’s the rewritten text:
This initiative fosters a unique ecosystem comprising leading startups, visionary investors, innovative enterprises, and creative testing grounds, all collaborating to bring cutting-edge AgeTech innovations to market.
“Now, it has turned out to be the most crucial ecosystem on this planet for AgeTech-oriented corporations, with almost 600 companies now involved,” Miller said. The continuum of care encompasses a diverse range of organizations, from the largest healthcare systems to smaller assisted living facilities. The collaborative boasts a network of approximately 200 startups that have successfully traversed our program.
Since 2018, AARP has committed to a significant stake in over 100 startups across various sectors, accounting for approximately 57% of its total portfolio growth within the last three and a half years.
AARP’s basis
AARP is the nation’s largest and most influential nonprofit, nonpartisan advocacy organization in the United States. With a mission to empower individuals aged 50 and above in the United States, AARP boasts a membership base of more than 38 million Americans.
The American Association of Retired Persons (AARP) views AgeTech as a valuable tool that can help individuals age successfully, recognizing a significant demand for technology-enabled care solutions. Their mission is to empower individuals to take control of their aging journey by exploring innovative technologies, products, and services that cater to diverse preferences and needs.
Established in 2021, AARP’s AgeTech Collaborative has evolved into the world’s premier AgeTech ecosystem, boasting a network of nearly 600 corporations, including many global giants, as well as over 90 venture capital firms. The American Association of Retired Persons (AARP) boasts a significant presence at the Consumer Electronics Show (CES) each year, showcasing its AgeTech offerings and strategic partnerships.
Among AARP’s top priorities for AgeTech solutions are:
- According to Miller, a significant majority – 77 percent – of people wish to age in place within their own homes, rather than relocating to an assisted living facility. The innovative smart home system requires a sophisticated network of sensors to accurately detect and respond to various scenarios, such as fall detection within the household or unauthorized exit from the premises. This initiative will specifically focus on providing support for sensible house assisted living.
- Mobility + staying lively. While advancements have been made in offering exoskeletons to boost individuals’ energy when navigating environments, the technology remains niche and its practical applications are yet to be widely seen.
- Mind well being. As people grow older, the biggest worry is not losing their freedom with the misplacement of car keys, but rather the gradual erosion of their autonomy? As dementia cases rise, the fear is that individuals will succumb to cognitive decline and ultimately lose control over their mental faculties, according to Miller.
- Social engagement + leisure. Loneliness, a pervasive issue among older adults, is often precipitated by social isolation. Technology offers innovative solutions to combat this problem, such as leveraging “music as medicine,” notes Miller. The digital actuality journey holds immense promise in this space, as diverse functions align to make a meaningful impact.
Statistics on aging populations suggest that the number of elderly individuals continues to rise globally?
According to Miller, the United States is witnessing a significant demographic shift as approximately 12,000 people turn 65 every day. Adults aged 50 and older contribute a staggering $8.3 trillion to the U.S. economy’s financial impact.
In countries such as India, China, and Japan, the numbers are truly staggering. “After accounting for the role of caregiving, it’s clear that we don’t have enough people to provide care for those who are aging,” Miller said. “To help bridge this gap, we’re actively pursuing opportunities to acquire and develop new know-how.” The AgeTech Investor Community provides access to a unique investment pipeline for angel investors.
Americans aged fifty and above. Invested a staggering $77 billion in research and development in 2022 alone, a figure expected to balloon to approximately $120 billion by 2030, according to estimates.
As the primary wave of millennials reaches their 50th birthday by 2030, the cumulative impact of their spending power is projected to reach a staggering $12 trillion in the US economy, significantly contributing to the nation’s economic landscape. The potential for this market to become the third-largest global economy is significant, with a projected value of over $35 trillion. By 2050, a significant proportion of the global workforce is expected to consist of individuals aged 50+, having a profound financial impact worldwide.
“That’s why numerous organizations have joined our collaborative initiative,” Miller said. Since baby boomers have amassed significant wealth during their working lives, businesses would be wise to target this demographic to capitalize on their purchasing power. The pervasive myth is that older generations are resistant to technology. The largest cohort in terms of client spending on knowledge is actually comprised of individuals aged 50-60, thereby solidifying their status as the most crucial demographic of early technology adopters among this age group.
How this system works
One of the dear issues that this community will create is how to curate and circulate a pipeline effectively.
While the necessity of attending an event to connect with AARP as a startup remains a crucial consideration, the text can be improved for clarity and concision: To partner effectively with AARP, startups must participate in one of our events and achieve a stage presence. It’s not necessary to emerge victorious, yet it is crucial to achieve this level of success. “After this step, we can then choose and select the ones we want to invite into our accelerator program,” Miller stated.
The eight-week accelerator program is the window during which AARP decides whether to invest in a start-up or not.
“We invest significant amounts of time in startups before making a decision, much more so than the average investor,” Miller said. Are you ready to face the final test? While it’s impossible to completely eliminate risk when providing funding, investors can still feel confident in their investment choices by carefully evaluating the companies.
Under certain conditions, AARP may assist in facilitating pilot programs and industrial partnerships for startups.
“As part of our strategy to build a robust marketplace, we’re forging strong connections with the angel community,” Miller said.
A partnership instance
Belief & Will is the main on-line property planning firm within the U.S. With a singular focus on empowering every American to leave a lasting impact. To simplify the estate administration process for our clients, we’re pivoting from traditional probate court proceedings to a comprehensive digital property planning approach, eliminating the need for an attorney’s involvement.
Belief & Will has been concerned with AARP by way of a partnership with the AgeTech Collaborative. In 2021, Belief & Will joined forces with AARP’s AgeTech Collaborative community in to assist innovate for the 50+ neighborhood, collaborating with startups, traders, and business leaders.
As AARP’s unique companion, Belief & WIll affords AARP members a 20% low cost on property planning companies, making it simpler for them to create wills and trusts. AARP additionally has a strategic funding in Belief & Will.
The companies embracing VoiceIt, Lance, Kinoo, Joylux, Springrose, 1 True Wellness, Six Degrees, Dentity, DeepLook Medica, De Oro Units, Abby by Gogotech, Addition, Advosense, Chas, Elektra Wellness, Ageless Innovation, Echas, Effectivite, Gameboard, Givers, GoodTrust, Grapefruit Wellness and SingFit.
At the Consumer Electronics Show (CES), AARP could potentially occupy a space of approximately 13,000 square feet. The toes of the exhibit area at the Venetian, comprising key components of digital wellbeing, smart home, and lifestyle knowledge zones. The AARP umbrella encompasses over 30 diverse corporations operating across multiple industries. The AARP and CTA are partnering to host the AgeTech Summit, featuring renowned journalist and author Maria Shriver as a keynote speaker.
On January 10, AARP will host a live-pitch event for startups, featuring a cash prize opportunity.
