Business opportunity 50+market

Business Opportunity – 50+ Market Val KratzmanRevised December 2016

Market Demand

• Market and Sector: US Healthcare and Lifestyle• Travel, construction, cities, healthcare, wellness, design, consumer goods, cars, pets

• Market Demand: USD 15 trillion global market, USD 3 trillion in the US alone• 50+ population want products and lifestyle choice based on their needs not on someone

else’s perceptions. This market wants to be recognized and not ignored for the 20+ market• Consumers have money to spend on things that they want not just need. Products and

services in this area are being missed as few products delivering the wanted benefits exist.• The market covers a vast range of market sectors: construction, consumer good,

travel/tourism, medical/healthcare, transportation/cars, services, all aspects of life. Healthcare may be receiving the most coverage.

• At the end of 2012, the 50+ population in the US reached 101 million And is expected to hit 113 million by 2018

• Five main categories of opportunity exists: Live Safely & Independently; Aging with Vitality; Maintain a Healthy Lifestyle; Manage Health Risks & Conditions; Improve Quality of Life.

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50+ Healthcare

• Nine specific sub-categories exist within healthcare that clearly highlight and segment opportunities that Finnish companies can target:

(category, VC investment, number of deals, most noticeable deal – 2014)1. Care Navigation $960M 75 Essence Healthcare2. Vital Sign Monitoring $781M 62 Proteus Digital Health3. Aging With Vitality $735M 41 Soundhawk4. Physical Fitness $222M 25 Noom5. Social Engagement $211M 29 MyHealthTeams6. Behavioral & Emotional Health $168M 22 AbilTo7. Diet & Nutrition $162M 21 Rise8. Medication Management $114M 17 Mango Health9. Emergency Detection & Response $38M 08 Healthsense

• Meet the new target markets that must communicate and connect with each other for the patient, care givers, and care team. As medicine is practiced differently by societies and cultures, these needs must be met locally, in partnerships, and with a new critical mass. VCs are investing.

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Opportunity Identification - Finnish Offering

• Opportunity– A multiple range of Finnish industries can be engaged by this market. Design to construction to

travel to healthcare to apparel to transportation. The new Live Well Collaborate created by Proctor & Gamble needs a European center of excellence and expertise. They have already set up one living lab in Singapore.

– The involvement in this industry will open new and numerous relationships with “uncommon connections” that will allow Finnish companies access never before available, as well as access to an entirely new focus for venture funding, private and corporate alike.

– If we only focus on healthcare, 85% of the Health 2.0 companies could participate in this opportunity.

• Finnish Companies – Not all companies and institutions have been contacted, but the following can participate

and/or have expressed interest: Health 2.0 attendees, MEK, VTT, Blueprint Genetics, Movet, MyDogDNA, First Beat, Aino Active, Mega Electro, Mendor, RecoApp, Traxmeet, Bone Index

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Summary

• Key talking Points– 50+ is global opportunity and growth market. Learn from the US, test in the US, modify and

adapt based on US input, partner in the US, and take US knowledge to other markets– The corporate investment in this space is opening new routes to market and there is an unmet

need by companies seeking development partners and consumers seeking solutions. There are multiple ways to enter and succeed.

– Venture funding will hit close to USD 3 billion in 2014 and the market is expected to grow double digits for the next 5+ years

– The vastness of the market means more opportunity to define your success versus being pushed back by competitors

– Cross industry pollination and market need further increases the chances for success, new ideas, and new ventures.

– Finland’s healthcare system and companies building their technologies on the Finnish system could be an advantage as the US reacts to Obama Care

– Do not focus on Health 2.0, it is not the driver.

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Summary Continued

• Rarely has such an untapped opportunity existed to generate revenues for entrepreneurs, investors and others in the private sector to generate revenues while meeting the greatest wants and needs of a substantial, influential and important population. Favorable demographics, maturing technologies, the consumerization of health care and increasing certainty surrounding the Affordable Care Act are among factors that have converged to make the health market for consumers 50 and older extremely attractive. This research finds that it is an opportunity that could within five years generate $20 billion in additional revenues for entrepreneurs and investors while having a significant impact on the lives of 100 million people.

• High impact investing that yields individual and social benefits as well as a financial return – ‐current market solutions are not meeting many of the needs and desires of this key consumer demographic, which includes many people who yearn for healthier, higher quality lives in which ‐they can feel as empowered and independent as possible. Thus large opportunities exist for new investment, development and deployment. Investors, entrepreneurs and other players in the private sector who heed the knowledge and forecasts provided in this report will find themselves in a unique position to innovate and adapt technologies and business models that can enable them to reap substantial rewards while having a meaningful impact in the lives of people age 50 and older.

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The Market

• Global aging populations are transforming services, lifestyles, habits, and especially health, healthcare, and healthcare practices including delivery and location of care. Knowledgeable, aware, and financially secure boomers and beyond, as well as communities that serve both the privileged and underprivileged need to address the new pressures being placed upon them by legislation and demographics alike. The move to ACOs, answering ACA, and the move for people to take care of themselves (self-accountable care) are creating new opportunities and tolerances to try new things. The quest to truly proactive preventive medicine and wellness and transition this to personalized medicine is real and being heavily invested in. What was once called Total Health, is the new future standard. Hospital at home, the medically centered home, the patient centered home, health anywhere means that as the quest for longevity becomes paramount, hospitals, homes, hotels, cars, foods, medical devices, electronics, etc. will all connect and serve this new need. This is the new 50+ market, which will make demands for need fulfillment that have yet to be defined. The lines are blurred: noninvasive bioinformatics, digestible monitors, big data, next generation mobility signal monitors, robotics, instant diagnostics anywhere, predictive modeling, doctors office visits, local pharmacies.

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