At VEST Her Ventures, we are committed to investing in companies that support women, working families, caregivers and inclusive employers. Our investment in Magnolia, a Care Economy company, aligns perfectly with our investment thesis, as the company addresses a critical yet often overlooked aspect of geriatric care: the need for family caregiver support.

Understanding the Need

With the U.S. population aging rapidly, the demand for caregiving is significantly outpacing available resources. Currently, 58 million older adults require support, a number expected to surge by 47% by 2050. Meanwhile, the healthcare sector faces a severe shortage of professionals. By 2034, the U.S. is projected to face a shortage of between 37,800 to 124,000 physicians. The demand for healthcare services, especially from those aged 65 and older, is expected to grow by 34% to 42% of the total demand for physicians by 2034. This shortage creates geriatric care deserts and exacerbates the challenges faced by family caregivers, who are often left to manage complex care responsibilities without adequate support.

Negative Impact and Cost to Families

Caring for a loved one imposes a significant economic burden on working families and family caregivers. This burden manifests in several ways, impacting both the direct financial costs and the opportunity costs associated with caregiving.

Loss of Income

• Reduced Work Hours: Many caregivers have to reduce their working hours or switch to part-time roles to accommodate caregiving responsibilities. This reduction in work hours directly translates to lower income.
• Career Sacrifices: Caregivers may pass up promotions, training, or other career advancement opportunities due to time constraints or the need for flexibility in their jobs. Some may even leave the workforce entirely, leading to long-term income loss.
• Unpaid Leave: In some cases, caregivers take unpaid leave to manage caregiving duties, further straining their financial situation.

Indirect Costs

• Health Impacts: The stress and physical demands of caregiving can lead to health issues for the caregiver, such as chronic stress, anxiety, or even physical ailments. This can result in increased healthcare costs for the caregiver and further strain on family finances.
• Reduced Retirement Savings: The loss of income and increased expenses often lead caregivers to dip into their savings or reduce contributions to retirement funds, jeopardizing their long-term financial security.
• Long-term Financial Security: The cumulative impact of reduced income, missed career opportunities, and lower retirement savings can have lasting effects on a caregiver's financial stability. Many caregivers find themselves with insufficient retirement savings or in debt due to the costs associated with caregiving.

Magnolia's Innovative Solution

Magnolia’s AI-driven platform supports family caregivers by providing personalized, evidence-based clinical guidance and support. What sets Magnolia apart is its holistic approach; it not only offers clinical advice but also addresses the emotional and logistical challenges caregivers face. By simplifying care navigation and offering continuous support, Magnolia significantly reduces the emotional burden and burnout that 60% of family caregivers experience. Magnolia is already partnered with leading healthcare organizations in the Pacific Northwest including neurology, primary care, and cardiology specialty groups. Magnolia is also a proud participant in CMS’s new innovative caregiver support model for people living with dementia, G.U.I.D.E.

Magnolia’s Net positive Impact

Magnolia is also the first platform using AI to synthesize both caregiver and patient data to deliver unique and predictive interventions. From accessing medical records, clinical protocols, and assessing social determinants of health, to providing targeted care plans, training, intervention and medication management. Magnolia AI platform will extend expertise across ‘geriatric care desserts’ which also leads to 52% reduction in emergency department use.

Why We Invested

Magnolia’s Team is composed of medical, clinical and operational experts with decades of combined experience building meaningful care solutions and technology products. The Founder Liz Tarullo was part of the Founding Team at Amazon Care Team. Magnolia’s offering is covered by insurance and is already in-network plans that include Aetna, Premera, United, Humana, Regence.

“the care crisis will hit America like a ton of bricks”
Commerce Secretary Raimondo warned about the impending crisis due to the shortage of caregivers. She advocated for a $400 billion investment in elder care, highlighting the urgent need for federal action to support caregivers and ensure the sustainability of the care sector

As of 2022, the elderly care market was valued at $872.1 billion and is expected to nearly double to $1.9 trillion by 2032, reflecting a compound annual growth rate (CAGR) of 8.2%. This surge is driven by the increasing number of older adults, who will account for a larger share of healthcare needs as the population aged 65 and older continues to grow.

To learn more about Magnolia, visit www.joinmagnolia.com

Interested in investing with us? Send us an email at: investor-relations@vesther.co