According to the Centers for Disease Control and Prevention (CDC), approximately 50% of Americans will be diagnosed with a mental disorder during their lifetime, and 1 in 5 will experience a mental illness within a year. Anxiety, stress and depression are daily battles for millions of Americans, and it seems that people, including big companies, are starting to take it seriously.
In America, many of the new innovations to address large-scale problems are being solved in the startup world. We hear that the founders are frustrated with the existing solutions, so they decided to create their own solution and turn it into a business.
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America has a solid and well-established venture capital (VC) and angel investment network and infrastructure, allowing top startups to raise capital even during an economic downturn. You can always bootstrap or build by rolling forward profits without using VC money, but that can take a lot of time.
An emerging area of VC focus is wellness tech startups, which saw 178% funding in 2021. About $11.4 billion was invested in wellness technology startups in 2020, rising to $31.7 billion in 2021. According to Nfluence Partners.
VCs aren’t the only ones investing heavily in wellness startups. SensateFor example, one of the top Wefunder-funded startups, which has raised over $1.9 million. The startup is doing well, with revenue up 363% in 2021, bringing in $2.8 million in revenue. This growth is attracting institutional investors and VCs such as Martin Tobias, who invested his $160,000 in Sensate, as well as TenOneTen Ventures, Unlock Venture Partners and Expert DOJO.
Sensate makes innovative devices and apps that help reduce stress and manage personal health. Sensate’s patented device uses infrasound therapy to help the body’s nervous system recover from stress and combines well with other techniques such as rest and yoga.
Sensate is the second-largest wellness brand by money raised on our Wefunder, but it’s not the only one. StartEngine and Wefunder are home to dozens of wellness tech startups, raising tens of millions of dollars this year alone. As the industry and funding environment continues to heat up, these startups offer an interesting opportunity for investors to diversify into this hot space.
As always, these investments are speculative and illiquid, so it is important to do your own research and not invest more than you can afford to lose.
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