In uncertain times, it can be a challenge for entrepreneurs to raise capital. When there are signals of a downturn across public markets, private market investors will often start to scale back on capital deployment. At least, that used to be the case. Despite an unprecedented global pandemic, the venture capital market of the U.S. invested a record-setting amount of money in 2020, only to shatter that record in 2021. According to a Pitchbook article, U.S.-based, VC-backed companies raised $329.9 billion in 2021, nearly double the previous record of $166.6 billion raised during 2020. One reason for the flood of capital last year is that there is also a record amount of “dry powder” in the VC market. An Axios study that looked at investing during the pandemic found that U.S. VC firms raised another $128.3 billion in 2021 putting funds in a position where they have ample capital to deploy. With all of that investment capital poised to fuel growth, investors need to increase the amount directed at high-impact categories. It’s especially important that those impact investments be concentrated on technologies and humans helping to mitigate major social and environmental disasters. Entrepreneurs innovating in sectors like Climate Tech and AgeTech, where the clock is quickly ticking, should have capital allocated to them and investors willing to help drive their missions forward.
If the fact that by 2030, 1 in 6 humans globally will be 60 or older doesn’t move the needle for investors backing AgeTech, perhaps the economics may do the trick. The Longevity Economy is estimated to be a $38 Trillion market opportunity. More early stage capital needs to become concentrated on this space in order to fuel founders and their visions. Spock Ventures sees the opportunity and is positioning itself to become a lever for AgeTech entrepreneurs. Hopefully even more VC funds will follow.