Global Assistive Technology Market Sees Growth with New Funding Group
Significant Market Potential
The global assistive technology sector was valued at over $22 billion in 2023 and is anticipated to experience significant growth by 2030. However, despite this promising market outlook, many entrepreneurs in the disability tech industry face challenges in obtaining the essential early-stage funding necessary to launch their ventures.
Adaptation Ventures: Bridging the Funding Gap
Adaptation Ventures, a newly established angel investment group, aims to address this financial shortfall by providing capital to early-stage startups focused on accessibility technologies. The group will support companies specifically developing solutions for individuals with disabilities, as well as those creating products that cater to a wider audience, benefiting disabled populations.
The initiative is co-founded by Brittany and Rich Palmer, a husband-and-wife team with a background in startups, angel investing, and personal experiences with disabilities.
Personal Insights on Funding Challenges
Brittany Palmer shared insights with TechCrunch regarding the significant funding gap she encountered while seeking investment for her startup, Beeyonder, which offers virtual travel experiences tailored for individuals with disabilities. She noted, “Venture capital firms often lack understanding of the disability community and the market opportunities associated with it.”
Rich Palmer, who previously co-founded Gravyty, echoed similar sentiments from his experience as a managing director and angel investor at Launchpad Venture Group, which specializes in tech and science-based startups. He remarked, “We recognized the opportunity to support remarkable founders and sought effective ways to provide them with the necessary capital.”
Evolution from Traditional Fundraising to Angel Investing
Initially, the Palmers set out to create a traditional venture fund, engaging various limited partners including impact investors and wealthy individuals. Although they encountered initial interest, the shifting industry emphasis on diversity, equity, and inclusion led to a decline in some of that engagement. Furthermore, they discovered a preference among affluent individuals to become directly involved with startups rather than participating as limited partners.
This realization prompted the couple to pivot towards establishing an angel investment group. Rich remarked, “Having benefitted from early angel investments ourselves, we understood the crucial gap in funding for companies in this space.”
Investment Strategy and Approach
Adaptation Ventures plans to allocate at least $250,000 to each selected company, with opportunities for co-investing. Quarterly meetings will feature a minimum of four pitches from aspiring entrepreneurs, where investors will vote to determine which startups proceed to the due diligence phase.
The group’s investment approach focuses on making costly technologies more accessible and affordable. Potential startups meeting this criterion might include ReBokeh, which develops assistive technology for individuals with low vision, and Tonal, a fitness company that enhances exercise accessibility for those who may struggle with traditional weights.
Rich humorously noted that their combined decades of experience in startups and investing have prepared them well for this new venture. As a survivor of a brain aneurysm, he has firsthand experience with both temporary and lasting disabilities. Brittany, a bilateral amputee, also brings a personal understanding to the team, allowing them to connect authentically with founders in this industry.
“We recognized the odds against securing funding for disabled entrepreneurs,” Rich added. “This initiative was our way of contributing to an essential change."
By investing in early-stage disability tech startups, Adaptation Ventures is poised to make a meaningful impact in the assistive technology market, fostering innovation that benefits a crucial sector of the population.
