Elderly care app Lottie secures £6M in funding round
Two brothers intent on improving the quality of life for families and their loved ones by setting up the first comparison website for residential care and independent living just one year ago have grown the company’s valuation to £45m, after raising more than £6m in its latest funding round.
After experiencing first-hand the stress of finding the right elderly care for their grandmother, entrepreneur Chris Donnelly (31) and social care expert Will Donnelly (27) launched Lottie in July 2021 – a free to use digital healthcare marketplace and concierge service that allows care and retirement seekers to locate and compare the UK’s best later life living options at a fair price.
Led by one of the largest US venture capital firms and former Airbnb backer, General Catalyst, Lottie has raised £6.125m to power national expansion of the platform, invest in new digital tools for care providers, make further inroads into the thriving retirement living sector and supercharge the growth of Seniorcare, the company’s eldercare employee benefit portal.
This newest capital injection is an extension of a £2.5M seed round which initially closed in January 2022, led by early stage venture capital firm Kindred.
Having raised £9.025m to date (pre-seed and seed), the company is transforming the confusing and complicated landscape of social care in an effort to help families minimise the time, stress and cost of finding quality compassionate residential care, is now worth £45m, and employs ten times as many staff as it did in November 2021, with 40 team members on the books.
The news comes as demand for elderly care services continues to boom. As people live longer, families increasingly need to find quality solutions for taking care of elderly relatives, while juggling other commitments such childcare and work. The value of the global elderly care market is expected to reach $2.4 trillion (£2 trillion) by 2029, according to market research from Data Bridge.
Establishing himself as one of the UK’s social care advisers, Lottie’s co-founder Will Donnelly spent 5 years at CBRE, where he advised on £2.5bn of healthcare transactions, while supporting the NHS during COVID-19.
“COVID-19 has supercharged the move of the later living industry from offline to online, from the initial search process and how care seekers engage with later living communities, through to the adoption of digital care plans and new operational technologies,” explains Donnelly.
“As well as assisting families and retirees in making important life decisions, Lottie is now helping our partner communities, both care and retirement, transition to the post COVID-19 digital world.
“Lottie’s operational technology is already being used by hundreds of the UK’s most forward thinking later living providers, which has been fundamental in allowing an improved customer experience, but also delivering better health outcomes for residents, and, in the long-term, will help deliver a sustainable industry which can meet the care needs of our rapidly ageing population.”
Fellow co-founder and Forbes Europe’s 30 under 30 alumni, Chris Donnelly says: “After closing with Kindred in January, we experienced unprecedented demand from funds. The first few months of 2022 have been hugely successful for us, so we decided to bring General Catalyst on by extending the seed round to further support our growth in the industry.”
Lottie has also previously received backing from the likes of Monzo founder Tom Blomfield and Lendable co-founder Victoria van Lennep. Chris Bischoff, leader of healthcare investment for General Catalyst, will join Lottie’s board as part of the investment. Bischoff brings with him an extensive track record of investment across the U.S. and Europe, participating in the fundraising for digital health service Babylon, among others.
“Today, elderly care is characterised by a broken care seeker experience, constrained supply of high quality, affordable homes and an increasingly challenging operating environment.
“Lottie is this unique hybrid of matchmaker, comparison website and care property specialist. Blending smart technology with a dedicated team of care experts, the platform is proving itself to be an indispensable ally in helping families and retirees make easy informed choices about elderly care.
“Lottie’s mission to ‘elevate elder care’ aligns with General Catalyst’s Health Assurance thesis to drive more digitally enabled, decentralised, preventative, and equitable healthcare.
“We are energised to partner with Chris, Will, and the whole Lottie team to help build a better future for those in later life.” says Chris Bischoff, Managing Director at General Catalyst. With the new funding, Lottie is set to expand nationally, adding new care partners and bringing its marketplace and software tools to more businesses and people around the UK.