Getting Real About AgeTech

What Industry Veteran Jon Warner Had to Say

Keren Elkin (The Gerontechnologist) recently had an insightful chat with Jon Warner, who's been in the health tech and healthy aging industry for 30 years. He's the visionary behind one of the first AgeTech accelerators that was even virtual way before it was cool, and a must follow thinker on LinkedIn for anyone seeking valuable insights. In the conversation, topics covered includel: why startups struggle, how AI is reshaping care, and much more. Here’s a summary of key takeaways.

The Health Tech Investment Rollercoaster:

• Things in health tech and healthy aging have been changing fast, making it kinda tough to guess what’s next.
• We saw a ton of new aging-focused startups pop up in the last five years, thanks to a lot of investment. But lately, things have cooled off because people are wondering if they're actually seeing a return on all that cash.
• Warner thinks 2024 was almost a pause button year as everyone tried to figure things out with COVID still lingering and AI showing up on the scene.
• Even though there’s a massive market and tons of potential money to be made in aging, it hasn't pulled in as much investment as things like regular shopping or cars. And get this – there aren't any true "unicorn" companies just focused on AgeTech.

The Big Mistake: Not Really Knowing Who You're Building For:

• One of the main reasons why investments have slowed and startups are struggling is because they don't really get the older adult customer.
• Just lumping everyone over 65 together and thinking they’re all the same is a huge error. You’ve got to think about age, gender, how people live (at home or in a facility), and even their personalities.
• The companies that are actually doing well are the ones that really understand the different groups within this market and create solutions that are helpful for both the older adults themselves and the people who care for them.
• Startups often fail because they base their ideas on just one personal story (like their grandma) instead of doing more digging.

Navigating the Healthcare Maze:

• Healthcare is super complicated, and startups need to get that they have to keep a lot of different people happy, not just the end user.
• The US market is especially tricky – it’s like launching all over Europe at once! You’ve got to be patient and target specific areas instead of expecting to grow everywhere super quickly.
• Understanding the rules and how things get paid for is key. This includes big government programs like Medicare and Medicaid, but also what happens at the state level.
• Don't forget about the private pay market (a massive $500 billion!) where people pay directly. Companies like Maven in women's health showed you can build a strong business this way.
• Even though it's had its ups and downs, value-based care is becoming more popular, which means there’s an opportunity for solutions that can actually prove they make people healthier and save money.

The AI Buzz: Excitement and Being Realistic:

• Everyone's talking about AI in healthcare and doesn't want to miss out, but there's also some nervousness because we're dealing with people's lives.
• The word "AI" itself is used way too broadly, making it hard to have real conversations about what it actually does.
• A big problem is that we don't have many solid research studies (like randomized controlled trials) for AI in healthcare yet, so it's hard to know how well it really works.
• Warner thinks we need to be more open and work together more on developing AI in healthcare, using those research studies to show real results and build trust.
• While AI is definitely coming, don't expect it to completely change everything overnight. It's probably going to be a longer process, maybe a decade or two, especially when it comes to things that directly affect patients. It'll likely start with more behind-the-scenes stuff first.
• AI is making it possible to have more personalized approaches to staying healthy and treating illnesses, taking things like your genes and gut bacteria into account.

Looking Ahead with a Bit of Both:

• Warner thinks more investment money will come back in 2025, but people will be smarter about where they put it, focusing on whether it actually works, fits into existing systems, and leads to real improvements.
• He's excited about community health, where older adults support each other using tech, and using ideas from behavioral economics to encourage healthier habits.

Advice for Future AgeTech Founders:

• Spend real time with older adults. Don't just pop in for a quick visit; really try to understand their daily lives and challenges.
• Don't skip the step of really understanding your customers. Figure out their problems from their point of view.
• Start by doing your homework online. Check out what big organizations are saying, look at online forums and groups, and get familiar with the language.
• Know the difference between figuring out the problem (customer discovery) and testing your solution (market research).
• Keep an eye on initiatives like Linkage Launch, which is trying to find solutions for problems that big aging-focused companies haven't been able to solve yet.

Basically, Jon Warner's take is that while there are hurdles in AgeTech, especially around truly understanding the diverse needs of older adults and the complicated healthcare system, there’s still huge potential for cool and impactful innovations. By really listening to customers, doing your research, and being smart about new tech like AI, entrepreneurs can build a better future for older adults.