Welcome to our #116 weekly newsletter.
“For women taking control of their financial future”
-Jana Hlistova
From The Purse
In this week’s newsletter, we focus on the ‘care economy’ valued at $648bn which is bigger than the US $510bn pharmaceutical industry.
Magnify Ventures, run by two female VCs, have recently closed a $52m fund aimed specifically at this ‘massive opportunity’.
***
And you can review the news in brief so you stay on top of global financial, economic and investing trends.
I hope you enjoy this week’s newsletter.
Until next week,
Jana
The care economy: the ‘massive’ opportunity valued at $648bn (and growing)
Magnify Ventures has recently closed a $52m fund aimed at this market
According to a report from from Melinda French Gates’ Pivotal Ventures, the ‘care economy’ is valued at $648bn. And it is bigger than the US $510bn pharmaceutical industry.
The VC industry is starting to pay attention, specifically female VCs like Julie Wroblewski and Joanna Drake of Magnify Ventures. They have recently closed a $52m fund aimed at the care economy.
As reported by Forbes, Wroblewski realized how big of an opportunity it was:
‘I started to see what I thought was a very compelling and growing category for investment in venture around the care economy and family technology…I was seeing really incredible companies and entrepreneurs.’
According Nancy Folbre, an economist focused on the care economy and how it relates to gender, it is wrongly assumed that the care economy relates to healthcare (only). In fact, as a market sector it represents ‘more than half of GDP that is currently measured’.
So what is the ‘care economy’?
According to the report: ‘It sits at the intersection of several macro-forces, [like] the future of work, social determinants of health, our aging population, the sandwich generation, and at the intersection of some of the biggest trends: consumer tech, family tech, and home health care.’
It breaks down into the following categories:
Household management: $122bn
Cleaning
Laundry
Cooking
Infant childcare: $136bn
New parent tech
Direct supervision
Early education
Long term care: $239bn
Nursing, hospice & palliative care
Long-care insurance
Retirement centres
Aging-in-place & home-based care: $151bn
Daily essential activities
Aging-in-place coordination
Caregiver quality of life
Health & safety awareness
Transition support
Social well-being
Adult home care provision
Wroblewski and Drake launched Magnify Ventures in 2020. As reported by Forbes, the fund is anchored by Pivotal Ventures and will focus on early-stage companies and will look at four main sectors: parenting and family life, future of work, household optimization, and aging and longevity.
Magnify Ventures has invested in seven companies to date and the firm is focused on the B2B market too as many large employers look to implement care-based benefits to retain and attract employees.
What next?
Read the report here
News in Brief
Financial news
China’s coronavirus lockdowns mean its economic growth may undershoot the US for the first time since 1976, a role reversal with potential political reverberations.
The S&P 500 falls more than 20% since January and so is in a bear market now.
On Wednesday, the Nasdaq 100 closed an ugly session down 5.1% for worst day since May 5. The index is now down 28% from ATH.
UK inflation hits a 40 year high at 9% in April, as energy prices soar. However the money printing during the pandemic by the central bank is what underlies the surge in inflation.
BoE’s chief economist warns of UK’s strong ‘inflationary momentum’ and predicts that interest rates will need to continue to rise.
Investors in the latest Bank of America Fund Manager Survey have become extremely bearish: cash levels have risen to 6.1%, the highest since 9/11.
Crypto: bitcoin, ethereum, DeFi & NFTs
Bitcoin falls under $30,000 as traders assess stablecoin fallout. The world’s largest cryptocurrency is having worst month in a year. And Goldman Sachs says stablecoin regulation likely as it may aid stability (see the current bitcoin price).
Bitcoin and ethereum hash rates hit all-time highs despite bear market.
Ethereum merge coming in August 'if everything goes to plan': according to core dev.
Swiss luxury watchmaker TAG Heuer is now accepting online bitcoin payments in a partnership with BitPay.
Mike Novogratz breaks silence and calls Luna a ‘big idea that failed.’ Billionaire blames macro environment for cryptocurrency tumble. Galaxy founder said Luna tattoo is a reminder of ‘humility’.
Weekly NFT sales plunge 50% to $255 million amid crypto bear market. And Bored Ape Yacht Club floor price has fallen 50% in dollar terms this month.
Andreessen Horowitz ie a16z has published its first annual the 2022 State of Crypto Report. Read the take down by Amy Castor here.
Coffee Break? Read This
We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and @janicka.
The Purse Ltd. Copyright 2022 & All Rights Reserved.
The Purse provides content for informational purposes only, we do not recommend products or services or provide investment advice. Please do your own research or speak to a financial adviser.
Share this post