Follow the Money: Top Investors Focus on Home Care
It’s no secret that home care franchises have been considered a smart investment for years. As America’s average age gets older and older, investors and entrepreneurs have been eager to get a piece of the emerging senior care market. But in recent years, some have wondered if the potential for growth is as strong as it once was. With baby boomers starting to hit retirement, there are concerns that the window on home care is closing.
Well, if Silicon Valley is any indication, those concerns may be overblown. In a recent article for Forbes, Joanna Glasner reports that prominent venture capitalists are turning their eyes to the senior home care market. According to Glasner, smart money expects the home care market to continue its upward trend into the coming years and beyond.
As America’s Choice in Home Care®, our team at Visiting Angels couldn’t agree more. Here’s why...
Demographic Shifts to Continue
In 2011, America’s first baby boomer hit retirement. Over the past five years, more and more baby boomers have reached the 65+ threshold, beginning an unprecedented window for the senior services sector.
Over the coming decades, the American market will continue to be defined by this shift in demographics. More and more baby boomers will hit retirement age over the next 10-15 years. While some of those seniors will require immediate care, many more will not need care until their mid-70’s or -80’s. That means home care agencies will continue to serve baby boomers well into the 2040s.
Shifting Attitudes Just as Important
As Glasner points out in her article, the home care market isn’t only driven by the number of American seniors. Equally important is the way Americans feel about home care.
Previously, Americans have been hesitant to hire at-home care. But in recent years, more and more seniors and their family members have warmed to the idea of at-home care. With nearly 90% of American seniors wishing to spend as many years as possible at home, this is a trend that industry experts expect to continue.
A People-Driven Industry
One interesting factoid from Glasner’s report is where Silicon Valley’s venture capitalists are focusing their investments. While west coast investors are known for technological disruption, Glasner points out that the actual work of home care is — and will continue to be — people-driven.
That means that investors are focusing on opportunities where technology is secondary to person-to-person care. Some of the examples Glasner cites are services that connect people to care providers, software support for care agencies, and care companies that are leveraging technology as part of their care.
Taken together, these investments point to a consensus among investors that person-to-person home care will be a growth industry for years to come.
Thinking of opening a home care franchise? Contact Visiting Angels today at 800-365-4189 for information on our home care franchises.