AARP, T. Rowe Price Launch Initiative for the 50+ Market

The Growing AgeTech Market: A $8.3 Trillion Opportunity

Technological solutions designed for seniors – encompassing healthcare, financial technology, and entertainment – are not a recent development. However, a burgeoning network of startups, investors, and prominent industry figures is currently highlighting what they identify as an $8.3 trillion market potential.

AARP's AgeTech Collaborative

The AgeTech Collaborative, initiated by AARP, is uniting organizations such as T. Rowe Price, Walgreens, Cooley, and QED Investors. The aim is to facilitate the expansion of startup products and tools, and to connect them with AARP’s substantial membership base of 38 million individuals.

The initiative began with the participation of 50 startups, including Voiceitt, Rendever, Trust & Will, and Mighty Health. These companies will benefit from access to six testbeds for product trials. Furthermore, they will have the opportunity to discuss their concepts with over 10 investors and venture capitalists, alongside leading corporations invested in the 50-plus demographic and service providers.

Significant Market Growth

Andy Miller, AARP’s senior vice president of innovation and product development, explained to TechCrunch that the current spending power of individuals over 50 already totals $8.3 trillion. Projections indicate this figure is expected to triple within the next three decades.

The concept for the collaborative originated from AARP Innovation Labs, an accelerator program led by Miller. While the accelerator attracted approximately 30 companies, it lacked the ability to directly connect them with AARP’s extensive membership. Consequently, the organization began exploring methods to provide startups with a pathway to scale, including identifying pilot programs and forging partnerships with companies willing to evaluate new products.

Responding to Investor Demand

AARP also received numerous inquiries from venture capital firms seeking their assessment of startups focused on the 50-plus market, as well as from other accelerator programs.

“We recognized a substantial need to consolidate this ecosystem,” Miller stated. “Daily, 10,000 individuals reach the age of 65, and the oldest millennials are just ten years away from turning 50. While a financial incentive exists, our primary goal is to promote positive social impact by enabling individuals to age more effectively. We are uniquely positioned to leverage AARP’s extensive network, connecting venture capitalists, corporations, and startups. AARP is best suited to capitalize on the age tech market, and we are committed to the success of all involved.”

Expanding AgeTech Ecosystem

Other organizations, such as Aging 2.0, are also actively involved in the age tech sector, seeking out the next generation of innovative solutions. Startups continue to secure funding for a diverse range of products and services. For instance, Bold recently raised $7 million to support its fitness programs tailored for seniors.

Prior to the global pandemic, technology for older adults was often considered a convenience. Now, it is “absolutely essential for maximizing quality of life,” Miller added. The need to adapt to technologies like QR codes for restaurant menus and telemedicine appointments has increased technological comfort among seniors.

Key Innovation Areas

Beyond these areas, Miller anticipates innovations in voice technology – exemplified by Voiceitt’s work in deciphering non-verbal sounds for device control – and fintech, including intergenerational financial planning tools.

Nigel Morris, managing partner of QED Investors, also identifies fintech as a key area of focus.

There is a growing need for guidance regarding retirement planning and wealth transfer to future generations. Furthermore, traditional retirement patterns are evolving, with more individuals opting to participate in the gig economy rather than fully retiring, he explained.

QED Investors' Portfolio

QED Investors currently holds investments in four age tech companies, including Freewill, which provides software for managed giving, and True Link, which assists caregivers in managing finances.

“Companies are now addressing this challenge, and the timing is ideal,” Morris concluded. “This demographic is often overlooked by investors due to a lack of understanding. The potential is immense, and AARP’s initiative is a significant step forward. Our participation as a founding member is a testament to the value of this collaborative effort.”