Raissa Hacohen of Longevity Venture Partners
November 23, 2024•624 words
Keren Ektin (The Gerontechnologist) interviews Raissa Hacohen on the AgeTech Podcast. Raissa is a founding partner of Longevity Venture Partners, a venture capital fund specifically focused on AgeTech. The conversation centers around the investment landscape in AgeTech, exploring opportunities, obstacles, and advice for startups in this space.
A summary of the key points discussed:
- Funding Challenges in AgeTech:
- Hacohen points out the limited funding available for AgeTech startups, attributing it to the relatively small number of dedicated AgeTech funds. She acknowledges the growing interest of generalist funds in including AgeTech companies in their portfolios, but stresses the need for significantly more capital to fuel the growth of the sector.
- VC Suitability for AgeTech Startups:
- Hacohen distinguishes between the types of businesses that thrive in the AgeTech space and those suitable for venture capital funding. She highlights that while many profitable, cash-flow-positive companies exist in the industry, they may not exhibit the rapid scalability venture capitalists seek [3]. She emphasizes that startups seeking VC funding must be prepared to demonstrate a path toward exponential growth in a short timeframe.
- Future of Work as a Key Focus Area:
- Hacohen expresses strong optimism about the future of work within the AgeTech landscape. She believes the traditional concept of retirement age is becoming increasingly irrelevant, advocating for a more flexible approach to work that accommodates longer lifespans and evolving individual needs [4]. She points to the rise of the gig economy as a testament to seniors' desire to remain engaged in meaningful work but calls for more innovative solutions beyond the gig economy to address this evolving workforce.
- Investment Criteria and Due Diligence:
- Hacohen outlines her key criteria for evaluating potential investments. She seeks startups with:
- A working product or minimum viable product (MVP)
- Evidence of product-market fit, indicated by revenue or strategic partnerships
- Exceptional founding teams with a deep understanding of the AgeTech space
- She emphasizes the importance of understanding the potential customer base, sales cycle, and sales pipeline when assessing a startup's investment viability.
- Hacohen outlines her key criteria for evaluating potential investments. She seeks startups with:
- Advice for AgeTech Startups:
- Hacohen offers practical advice for early-stage AgeTech startups:
- Prove Investors Wrong:
- She encourages startups to challenge investors' assumptions by presenting compelling data that demonstrates their growth trajectory and ability to meet key performance indicators (KPIs).
- Maintain Consistent Communication:
- Hacohen underscores the value of building and maintaining relationships with potential investors and partners. She advises startups to stay connected with interested parties, even those who may not be ready to invest immediately, by providing regular updates and demonstrating a consistent communication style [9, 10]. Building strong relationships can lead to future investment opportunities when startups align with an investor's criteria.
- Vision for the Future of AgeTech:
- Hacohen envisions a future where addressing the needs of the aging population becomes a global priority, requiring a multi-faceted approach that involves government initiatives, cultural shifts, and grassroots efforts alongside technological innovation [11]. She advocates for a global movement that reimagines societal systems like healthcare, retirement, and social security to better support longer lifespans and the well-being of older adults.
- Alternatives to VC Funding:
- Hacohen acknowledges that not all AgeTech startups are suitable for venture capital funding. She encourages entrepreneurs to consider alternative financing options, such as bootstrapping or seeking funding from private investors and family and friends, to build sustainable businesses without the pressure of achieving hyper-growth.
This interview offers valuable insights into the AgeTech investment landscape and guides startups seeking funding in this growing sector. Hacohen’s perspective emphasizes the importance of addressing the evolving needs of the aging population through a combination of technological innovation, societal changes, and a diverse range of funding models.