A Manifesto for a Better 2021

As we celebrate the first days of 2021, I’m excited to share the biggest opportunities for change we see right now around the world.

I’ve already shared our mission with you: backing mission-driven founders who are making life better for the 99%. But what does that look like in practice? We continue to see opportunities across our investment areas of health, finance, education, housing, and work, so I’m sharing more about the opportunities we’re interested in right now that can make a huge impact for the 99%.

Each of these industries is fundamental to everyone and yet, they’re simply broken. We spend our time understanding the underlying problems so that we can invest in companies that build new alternatives and challenge the status quo. We’ve already been doing this for five years, but 2020 was the year that our work really hit home — it’s clear to see in this moment of the pandemic and the racial justice movement that our basic needs are just not being met by society’s current options. After diving deep into research in these sectors, we wanted to share where we see the biggest opportunities for new businesses to jump in and start addressing issues. We’re fired up to back the founders who create better futures for our friends, families, and communities!

Our 2021 Wishlist

1. Affordable at-home healthcare solutions. We believe there is a huge opportunity to address healthcare costs (currently the #1 cause of bankruptcy in the US) through provision of care in the private market. Innovative technology that consumers can buy or access directly will drive down the currently unacceptable costs of administering care. Moreover, consumers are looking to access this care without having to visit a lab, doctor’s office, etc. We are looking for simple, affordable products and services (mostly diagnostics and digital-health solutions) that can help monitor and improve one’s health which can be administered from the comfort of their own home. Companies we have backed so far: 100 Plus, Mammoth Biosciences, Eva, Base, Flux Biosciences
2. Quality, affordable, and accessible solutions to improve our mental health. Mental illness is a subset of care where the affordability and access issues are especially stark. In the US, 50% of depressed people can’t get treatment due to cost. We want to see platforms and marketplaces that make sense financially for therapists and patients, new pharma and alternative medicine solutions to battle mental health issues, solutions that focus on mental wellness rather than traditional therapy, and other radically different approaches to make and keep people happier. Companies we have backed so far: Real, Nirvana Health, Marigold Health
3. Modern benefits that support a better quality of life for employees. The $215B+ benefits industry faces shifting consumer demands and new needs from millennials and Gen Z. Companies (big and small) need ways to support the new workforce with their health concerns, family dynamics (dual working households), education and re-training, remote-work, financial stability, etc. We’d love to see more founding teams building tailor-made solutions for SMEs and enterprises so that they can support a better quality of life for their employees. Companies we have backed so far: Teal, Brella, Cuidas, Honeybee, Kinside, Lantern
4. Vertical marketplaces that specialize in empowering labor groups through financial stability and career mobility. Right now, workers are facing an unprecedented job market filled with uncertainty and risk. But through online marketplaces focused on specific verticals, labor groups are able to acquire stable, meaningful work with tools, resources, and benefits that were previously unattainable. Workers have a healthier career path while employers can access high-quality talent in a more efficient manner. We are looking for founders with insight and insider knowledge of specific labor groups who can build tailored solutions to help them succeed. Companies we have backed so far: Sh1ft, ArtistOnGo, TalentHack
5. Increasing access to healthy, affordable food options for the mass consumer. Food insecurity and lack of food access saddle many with subtle inequities (and not-so-subtle: a healthy diet costs $2,000 a year more than an unhealthy one for the average family of four). As the restaurant industry faces unprecedented challenges from the coronavirus pandemic, consumers are negatively impacted by higher food prices and increased need for convenience. We want to see affordable and accessible solutions that can scale, to let busy individuals and families across the world eat tasty, healthy food without breaking the bank. Companies we have backed so far: Anycart, Shef, Frubana, Superfuds, Scratch Kitchen, New Age Meats, Kencko, Positive Foods
6. Modern, affordable living experiences. If you’re looking for any sort of living situation (even in a supposedly “luxury” segment), you face a lack of community, an uneven experience with landlords, and inflexible terms. And that’s before cost even comes into play. Income/rent ratio is over 50% in many top-tier cities and most millennials will not have the capital to buy their own home — it’s just not sustainable. We’d love to see more companies addressing these fundamental issues by building innovative housing options, modernizing the renting process, and making it financially possible to own your own home, and we are especially interested in founders operating in emerging markets. Companies we have backed so far: Culdesac, June Homes, Up&Up, Rentlogic, EasyKnock
7. A revolution in higher education. Our current educational system is not actually preparing graduates for the workforce, and as automation disrupts human labor, the need for skills-based training and retraining is only increasing. This is the decade for companies in the education space to tear up traditional systems, from teaching and curriculum to community and student life. Companies we have backed so far: Top-E, Pathrise, Verto Education, Edsights
8. Digital learning tools for remote education. As schools reopen and online education surges, families and students around the country are struggling to find tools and platforms that work for them. The achievement gap between children of different socioeconomic status is widening with remote learning, and the flood of both information and misinformation is creating a difficult environment for students attempting to understand their place in the world. We expect new players in the space can provide radically better solutions to help young students to succeed through models like peer-to-peer learning and project-based learning. Companies we have backed so far: Kunduz, Tract, Toot, Me Salva, Kyt Academy, Blue Studios
9. Cheap, fair, and accessible financial services customized for the folks who have typically been left behind. Financial literacy has declined across the US, only 54% of Americans have a savings account, those that do have less than $1,000 in savings, and our current racial wealth gap is slated to cost the US $1.1-$1.5T in GDP by 2028. In emerging markets, these numbers are much worse. We are looking for founding teams that have deep insight into a particular demographic, a unique model that can access traditional credit and investment markets, and marry technology and good design to create fair, equitable solutions for the 99% to build stable financial futures for themselves and their families. Companies we have backed so far: Possible Finance, Self, Narmi, Tranqi, Cowrywise, R5, &Financial, Pillar, Savi, Groww
10. Verticalized SaaS that specializes in empowering small business owners. Small businesses are the lifeblood of global economic growth. In the US there are 30mm small businesses and 28mm across LATAM. There are two primary drivers for pursuing a small business: 1) is to be your own boss (55%) and 2) is to pursue a passion (39%). Most SMB owners hate business operations, marketing, planning, and all the other parts of running a business that take them away from pursuing their passion. We are looking for founders building verticalized solutions for SMB owners across Food, Transportation/Logistics, Health, Education, and Housing, with a bent for emerging markets. Companies we have backed so far: Tul, Nirvana Health, MyVillage, Ayenda, Frubana, Helium Health

🤝JOIN US🤝

Help us create this change with the K50 Ventures community. These issues are each huge — far, far too large for our small team or even our 130+ portfolio companies to tackle alone. We believe the time is now to back a new generation of mission-driven entrepreneurs, and if you or someone you know is focused on solving any of these pressing challenges, we would love to meet them so that we can help!