Google Capital Makes Care Sector Entry with $46 Million Investment
A behemoth of global business now has tied itself to home care.
Google Capital on Wednesday announced it has invested $46.35 million in Waltham, Massachusetts-based Care.com, Inc. (Nasdaq: CRCM), the world’s largest online marketplace for finding and managing family care. Google Capital, a growth equity fund backed by technology conglomerate Alphabet (Nasdaq: GOOGL), invests in companies that are driving disruption in their markets through long-term technology trends.
Google Capital’s share in the $278 million company makes it the single largest shareholder in Care.com. At present, Care.com connects 11 million families with 8.6 million caregivers in 16 different countries. Care.com deals in senior care, as well as child care, pet care, housekeeping and more.
As part of the deal, Google Capital Partner Laela Sturdy will also join Care.com’s Board of Directors.
“We are thrilled to announce this investment and to partner with Google Capital during our next phase of growth,” Sheila Lirio Marcelo, Care.com’s founder, president and CEO, said in a prepared statement. “Laela will be a great addition to our Board, bringing significant operating and investing experience including nearly a decade at Google/Alphabet. We look forward to bringing that expertise to bear as we innovate our service offerings for our members and corporate clients, while continuing to add value for our shareholders.”
In the past, there has been speculation Google would eventually dip its toes into the senior care industry.
In 2012, the technology giant paid a reported $100 million for Meebo, a company helmed by Seth Sternberg, who is now the CEO of home care startup Honor. Sternberg was coy when Home Health Care News asked whether Honor might also be acquired by the tech giant.
“I didn’t create something with Meebo that is still there changing the world for people, it’s just now integrated into the Google ecosystem,” he told HHCN. “With Honor, I really hope that we fundamentally make the world a better place for seniors, for their families and for the care professionals, and that Honor continues to evolve and continue to do that when I need help as a customer.”
Written by Mary Kate Nelson