Investors swarm to the growing “famtech” market for new parents – ImpactAlpha

Investors swarm to the growing “famtech” market for new parents – ImpactAlpha

Marissa Mayer
ImpactAlpha, July 17 –  Millennials—the first generation of digital natives—are growing up and having kids. They’re naturally turning to tech-enabled solutions to stay healthy, lower the cost of childcare and buy baby gear. And if they can’t find them, they are increasingly creating their own. The generational shift is driving a new wave of innovation aimed at the challenges of parenting in the modern age—from the need for more informed healthcare for moms and newborns to juggling the demands of childcare and careers. Call it childcare tech, parenting tech, tech for families, or simply, famtech.A diverse range of investors is calling it a big opportunity. In the past six years, venture firms have deployed some $500 million into startups targeting early parenthood solutions.
Forbes estimates the emerging “new mom economy” at just under $50 billion.The latest example is Mahmee, a digital network of care for new mothers, which attracted $3 million from venture funds managed by Arlan Hamilton and Steve Case, as well as Serena Williams and Mark Cuban.Arlan Hamilton, Serena Williams, Mark Cuban and Steve Case line up behind Mahmee to improve maternal health “Given the bleak data surrounding maternal death and injury rates, I believe that it is absolutely ....

In March, Cleo, a healthcare-focused employee benefits platform for working parents, raised $27.5 million. The deal, led by New Enterprise Associates, included tech leaders such as Marissa Mayer and Jeffrey Immelt. “Famtech” has crossover appeal. Investors pursuing objectives including gender and racial inclusion, education, healthcare, impact and growth see opportunity. “I’m excited by the sheer vastness of the market opportunity, ” said VC Arlan Hamilton, whose ArlanWasHere Investments led Mahmee’s round.
“This is truly one of those cases where by doing good (in some cases saving lives), the team can do well.” Affordable careThe sector has captured the attention off Austin-based Techstars Impact. .

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