By all accounts, Silicon Valley loved home care in 2016.
In fact, prominent, Silicon Valley-based venture capital (VC) firms have invested more than $200 million altogether in home care companies this year, according to Forbes.
Home care software provider ClearCare received the most funding overall, having secured $60 million in a round led by Battery Ventures in August. Care.com (Nasdaq: CRCM), the largest online marketplace for finding and managing family care, received the second-most VC funding this year when Google Capital invested $46.35 million in the company in June.
Investors and venture capitalists are attracted to the home care market because it shows major growth potential and has experienced “relatively minimal technological disruption,” the Forbes article says. Scalability, however, could prove an issue, as some home care startups—like Honor and New York-based Hometeam—currently only do business in select states or metropolitan areas.
There’s proof that scalable models can produce high, growing revenue while also turning a profit, the article adds. After Google Capital’s $46.35 million investment, Care.com’s revenue increased by double digits to reach almost $80 million in the first half of the year; the company also reported a small profit.
Read the article at Forbes.
Written by Mary Kate Nelson