Adaptation Ventures - Angel Investors in Disability Tech

Assistive Technology Market and the Rise of Adaptation Ventures

The worldwide market for assistive technology reached a valuation exceeding $22 billion in 2023. Projections indicate significant growth is anticipated by the year 2030. However, despite this substantial market potential, securing initial funding remains a considerable challenge for many entrepreneurs focused on developing technologies for individuals with disabilities.

Addressing the Funding Gap

Adaptation Ventures has emerged as a new angel group specifically designed to address this funding disparity. Its core mission is to provide capital to early-stage startups innovating in the realm of accessibility technology. The firm will support both companies exclusively dedicated to serving people with disabilities, and those with broader applications that also benefit these populations.

Founders with Lived Experience

The firm was co-founded by Brittany Palmer and Rich Palmer, a married couple. Both bring extensive experience as former startup founders, angel investors, and, importantly, as individuals with disabilities themselves.

Firsthand Insights into Funding Challenges

Brittany Palmer shared with TechCrunch her personal experience encountering this funding obstacle. She faced difficulties raising capital for Beeyonder, her previous venture which provided virtual travel experiences tailored for people with disabilities.

“Venture capital firms often lacked understanding of the disability community, its size, and the potential for market engagement,” she explained. A common theme emerged in conversations with other founders in the disability tech sector – a widespread lack of comprehension within the startup and venture capital landscape.

Reinforcing the Need for Specialized Investment

Rich Palmer, previously co-founder of Gravyty, encountered similar perceptions while involved in investing as a managing director and angel investor at Launchpad Venture Group. This group concentrates on technology and science-based startups.

“We recognized this opportunity,” he stated. “We were consistently meeting exceptional founders and sought the most effective method to facilitate capital access for them.”

From Venture Fund to Angel Group

Initially, the Palmers pursued raising a traditional venture fund, presenting their concept to numerous limited partners (LPs), including impact investors and high-net-worth individuals. While initial interest was generated, some of this waned due to shifting industry trends and evolving discussions surrounding diversity, equity, and inclusion following the change in presidential administration.

Furthermore, they discovered that high-net-worth individuals expressed a preference for direct involvement with startups in this space, rather than acting as LPs within a fund. This realization prompted them to consider establishing an angel group instead.

“Both of us have directly benefited from the support of angel investors who believed in our early ventures,” Rich Palmer noted. “As individuals with disabilities, we observed a significant gap – the absence of angel groups dedicated to supporting companies from their initial stages of development to subsequent growth. This lack of early-stage funding was striking.”

Investment Strategy and Process

Adaptation Ventures intends to invest a minimum of $250,000 in each selected company, with opportunities for co-investment. The group will convene quarterly meetings featuring at least four startup pitches. Investors will then vote to determine which companies proceed to the due diligence phase, as outlined by Brittany Palmer.

Focus on Accessibility and Affordability

The group’s investment strategy, as described by Rich Palmer, centers on making advanced technologies more accessible and reducing the cost of expensive solutions.

Examples of Target Companies

Potential investment targets include companies like ReBokeh, which develops assistive technology for individuals with low vision. The strategy also encompasses companies with broader applications that enhance accessibility for people with disabilities, such as Tonal, which makes exercise more attainable for those with physical limitations.

Decades of Experience

Rich Palmer humorously remarked that their combined decades of experience in the startup and investment worlds have effectively prepared them for this new endeavor over the past ten years.

“I am a survivor of a brain aneurysm,” he shared. “This has resulted in both temporary and permanent disabilities. Brittany is a bilateral amputee. These experiences are readily apparent and often discussed. Consequently, we have attracted founders in this space and have been actively investing as angels for several years. The challenges in securing funding are significant, making this venture almost a necessity.”