Addie Lerner, a principal at General Catalyst, spent this past spring talking to 30 founders, advisers, and investors about the $350 billion elder-care market.She says the conversations gave her perspective on what's still missing, and how entrepreneurs and investors can address it.In particular, she's interested in finding companies that tackle financial-planning solutions for the cost of long-term elderly care, as well as those directing content and programming toward elderly people.Addie Lerner's interest in finding new companies that care for an aging population is personal.Lerner's grandmother, Mimi, is 91 years old, and over the years Lerner has watched as Mimi's quality of life has diminished, leaving her with poor vision and needing to use a wheelchair or armchair. Meanwhile, Lerner saw her mom and aunt spend their time and resources making sure Mimi's taken care of and financially supported.Caring for elderly people, even those who are healthy, can be expensive, and home-healthcare visits aren't covered by Medicare and Medicaid, the government-run plans that oversee healthcare for seniors."That really got me thinking: How come no companieslet alone technology companiesare solving the pain points that all of these different stakeholders face in the industry'" said Lerner, a principal at the venture firm General Catalyst.So this past spring, she went around talking to 30 founders, operators, advisers, and investors to get a better sense of the $350 billion elder-care market. From those conversations, Lerner said, she realized there were three challenges to starting a company that caters to seniors:To start, a lot of elder care requires human interaction, like helping with daily chores or preparing food. That's a hard process to automate, Lerner said.Introducing new technology to an older population can also be difficult, though that might start to change as tech-savvy baby boomers age.The folks who need the care or are paying for it aren't necessarily on social media, so marketing as, say, a mattress startup would might not be the most successful approach. And existing companies like elder-care facilities and home-health agencies often don't have excess cash to spend on new products, Lerner found.So far, General Catalyst hasn't made a direct investment in an elder-care company. Coming out of those conversations, Lerner noted some of the opportunities tech companies could have in the market.In particular, she said she'd like to see companies tackle financial-planning solutions to make it easier to pay for long-term care. While people are living longer, healthcare costs are also on the rise, meaning that "people need to start planning for those expenses a lot sooner and save a lot more money for it," Lerner said.She said there was also an opportunity in content and programming to engage seniors, both those who recently retired and those closer to her grandma's age."She has really no content or programming geared toward her," Lerner said of her grandma, adding that ideally there'd be programs designed to prevent her from feeling isolated and keep her mind sharper.SEE ALSO:A startup that's raised $115 million once wanted to disrupt the multi-billion home care industry ' now it's working with itJoin the conversation about this storyNOW WATCH: Why horseshoe crab blood is so expensive
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