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New Report: The Care Economy is a Strong Investment Opportunity
A new report released today by The Holding Co., Pivotal, and Beyond Ventures shows that the care economy is a durable, growing market ripe for investment. From 2019-2024, VC investment in care increased by 45% compared to the previous five-year period.
“The Care Economy: VC Investment Landscape” provides a comprehensive overview of venture capital investments in the U.S. care economy from 2015 to 2024, based on data from PitchBook. Over that 10-year period, venture capitalists invested more than $26 billion in companies working on care solutions. Today, there are more than 700 companies in this space backed by VC funds—including 13 companies valued at more than $1 billion.
"We now have something we've never had before: a decade of venture capital data on the care economy,” said Patrice Martin, cofounder and CEO of The Holding Co. “VC investment is one piece of a larger puzzle, but it's an important one. It shows that care is not a niche bet, but a durable part of the innovation landscape. This data has already proven to be a powerful conversation starter, and we're excited for people to dive into it."
"Families are looking for more support and new solutions when it comes to caregiving, and the venture capital sector is recognizing that opportunity. More and more investors see that backing care innovation is good for families and good for business. With increased investment in the care economy—from both the public and private sectors—we can build a care system that works better for families, communities, and the economy."
With an aging population in the U.S., rising child care costs, and 130 million Americans serving as caregivers today, there is a need for more solutions that make care easier to manage and afford. The new report, the fourth in a series of reports on the care economy, shows that the sector is poised for even greater innovation and investment in companies that are finding ways to improve care and save caregivers time and money.
The report finds that both established and emerging VC firms have seized on these opportunities. In fact, 20 firms, including prominent investors, have each made 15 or more investments in the care economy.
The report analyzed VC investment in four segments: care for infants, children, and adolescents; care for older adults; solutions to help caregivers manage their households; and solutions to help caregivers access services and navigate care and finances. In the past 10 years, the fastest-growing segments for VC investment in care have been in care for infants, children, and adolescents and care for older adults.
Looking ahead, the report identifies two big investment opportunities to bring much-needed innovations to Americans: AI tools that help caregivers better provide care and solutions that help care organizations navigate their work with institutional payers like Medicaid and Medicare.
To read the report, visit investin.care/care-economy-vc.
About Pivotal
Founded by Melinda French Gates in 2015, Pivotal is a group of organizations working to accelerate the pace of social progress for women and young people in the U.S. and around the world. We use philanthropy, investments, advocacy, and partnerships to drive momentum where we see the biggest opportunities for impact. Pivotal includes Pivotal Philanthropies, Pivotal Initiatives Fund, and Pivotal Ventures.
About The Holding Co.
The Holding Co. is a strategy and design agency focused on women, families, and the care economy. The company partners with startups, nonprofits, government agencies, and corporations to build compelling brands, products, and experiences that better support modern life.
About Beyond Ventures
Beyond Ventures is an institutional investment and philanthropy advisory firm serving family offices, endowments, and foundations. We combine sophisticated analytical rigor with thesis-driven strategy to help clients achieve durable financial outcomes and measurable impact.
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