Upsidehōm Secures Seed Funding - Papa Co-founder's New Venture

Jake Rothstein and the Evolution of Senior Care

Jake Rothstein, the co-founder of Papa, a Miami-based enterprise, is dedicated to providing both care and companionship for seniors. This business connects elderly individuals with vetted companions, offering assistance with tasks like tech support, grocery shopping, or simply engaging conversation. To date, Papa has secured over $91 million in venture capital funding.

From On-Demand Support to Holistic Living

Although Rothstein stepped away from daily operations at Papa in 2017, his involvement provided valuable insights into the needs and priorities of aging adults and their families. While Papa addressed immediate needs, he began to contemplate a broader question: What if the environments where seniors live weren’t consistently supportive around the clock?

Introducing UpsideHōM: Tech-Enabled Senior Living

Following a period at another technology firm, Rothstein, alongside co-founder Peter Badgley, launched UpsideHōM in January 2020. This venture represents a contemporary approach to senior living communities, offering fully managed, technology-integrated living spaces. After a year of testing, the company has announced a $2.25 million seed funding round, spearheaded by Triple Impact Capital and Freestyle Capital, with Techstars also participating.

A New Platform for Seamless Living

Alongside this funding, UpsideHōM unveiled a significant update – a software platform designed to streamline the moving and maintenance processes for residents. This platform provides a central hub for communication with property managers, bill payments, and access to services like on-demand tech support, housekeeping, and companion visits through a partnership with Papa. Additional services include meal preparation, grocery delivery, fitness programs, and transportation assistance.

Personalized Solutions for Diverse Needs

UpsideHōM prioritizes personalized care. Recognizing the diverse ages, needs, and financial situations of seniors, the company aims for a flexible solution adaptable to evolving requirements. However, it’s important to note that the company doesn’t offer traditional caregiver services due to state-specific regulations, instead focusing on supportive assistance.

The Initial Vision and its Refinement

Initially, the company explored a more unconventional concept. Rothstein envisioned completely resolving loneliness by integrating companionship directly into the living arrangement, rather than offering it as an on-demand service. Roommate matching for seniors was considered a core service, alongside supportive living features, but this approach didn’t gain widespread traction.

Over half of those responding to marketing materials expressed interest in the concept, but preferred independent living spaces. Currently, 50% of UpsideHōM’s clientele consists of individuals or couples, while the remaining 50% are interested in shared living arrangements.

Synergies Between Papa and UpsideHōM

The connection between UpsideHōM and Rothstein’s previous company, Papa, is evident. Papa provided services approaching care, stopping short of regulated care-giving, which necessitates specific vetting and compliance procedures. UpsideHōM similarly offers services up to, but not including, traditional assisted living, avoiding the associated logistical complexities.

A Dedicated Focus on Supportive Living

Rothstein explained that he chose not to integrate these supportive living services as a new product line within Papa due to the substantial market opportunity, which justified establishing a separate company. He also noted that customer acquisition strategies differ significantly between the two businesses.

“Acquiring customers in this sector proved exceptionally difficult at Papa, leading us to utilize the Medicare Advantage route,” he stated. “However, the senior living market represents a distinct segment.”

Preparing for Accelerated Growth

The recent influx of venture capital is fueling UpsideHōM’s plans for rapid expansion. While specific revenue figures and total resident numbers haven’t been disclosed, the company reports a 1,000% increase in new resident acquisitions during the first half of 2021. Sustainable customer acquisition will be a key focus as the startup enters its next growth phase.

Proactive Planning for the Future

Rothstein believes that transitioning seniors into suitable homes is a compelling proposition. “Individuals can remain in their current homes as long as it’s feasible, but there will inevitably come a time when that’s no longer practical,” he said. “Wouldn’t it be preferable to make this decision before facing a hip fracture, financial hardship, or the loss of a spouse?”

Note: A previous version of this article incorrectly stated that Rothstein spent six years scaling Papa. He left the company in 2017 but remains an investor.