Russell Hirsch, left, Adam Kaplan, middle, and Danny Kaplan, right. (Courtesy Equitage Ventures)
The fastest growing age demographic is those over age 85. By 2030, every baby boomer is going to be over age 65. By 2032, the Medicare budget is set to be twice that of 2022.
These facts were going through the minds of Adam Kaplan, Russell Hirsch and Danny Kaplan when they started Equitage Ventures. Now, after a year and a half of raising, the trio is ready to pour $47.3 million into senior health and tech for the aging demographic.
“I don’t see a way we’re going to take care of older adults without investing in tech,” said Hirsch, who co-founded a similar fund called Generator Ventures during his decadeslong investing career.
“Today’s aging demographic will define tomorrow’s economy,” he said.
Equitage, whose name combines “health equity” and “age,” will invest in early-stage companies across the senior health sector. Mental and behavioral health, living facility operations software and family caregiving support are all potential categories the three could add to their portfolio.
Though they haven’t signed any checks yet, they anticipate investing $250,000 to $2.5 million in each deal.
“We’re looking for anything that helps deliver more proactive and preventive care, and making those services more effective and accessible is an area that I’m very hopeful for,” said Adam Kaplan, who in 2016 founded Denver-based Solera Senior Living — a developer, operator and investor in senior communities.
He said consumer products specifically geared toward older people are another area Equitage will target.
“It’s been a demographic that’s mostly ignored because people want to spend their marketing dollars on Gen Z, because once they capture them, they have them for life,” Adam Kaplan said. “But this (older generation) is the demo that has disposable income.”
Though they didn’t disclose specific names, they said a publicly traded health care tech company and a prominent hospice agency are among Equitage’s roughly 70 investors. Danny Kaplan, who is not related to Adam Kaplan, said they will tap into that network to source potential portfolio companies and help them grow.
“Our ability to get that company in front of very large distribution channels and customers is very real, and that’s something that helps us stand out between raising and deploying capital,” said Danny Kaplan, who worked with Hirsch at Generator.
Hirsch noted that having a niche gave the group an advantage in a tough venture environment, especially for first-time funds.
“We turned a negative into a positive,” Hirsch said. “The individuals and entities who we raised capital from represent some of the biggest and most influential operators and corporations across the senior care and health care and long-term care world.
“We have this very highly curated (investor) base. While it’s not unique overall in the venture world, it’s highly unusual to go out and build your base around helping source companies, source entrepreneurs, evaluate operations and make decisions about investing in those operations,” he added.
Having Solera’s 16 national properties, including the local Modena Cherry Creek, to tap into and learn from is also a boon. Because they have been early adopters of innovative senior care solutions, that will help generate deal flow and provide a testing ground, Adam Kaplan said.
Modena Cherry Creek at 2240 S. Wabash St. (Courtesy Solera)
“We’re constantly looking for new products and services to validate, and it will help with opportunities that we’re sourcing before we decide to scale and make an investment,” he added. “And if we decide to invest, then we can work with the company again to refine the services and validate what they’re doing.”
Equitage considers itself a Denver-based fund. Adam Kaplan and Hirsch call the region home, while Danny Kaplan lives in San Diego. Firm adviser Jennifer Meyer, the former Dispatch Health chief revenue officer and current president of mental health company Sondermind, is also local.
Equitage’s investments will have no geographic bounds, but Hirsch and Adam Kaplan did say there might be a “Denver bias.”
“By us being here, we hope the companies will start here,” Hirsch said. “When you’re doing early-stage venture, proximity is a good thing. We’ll go anywhere, but if you can jump in your car and go to a board meeting, that’s a plus.”
They noted a burgeoning health-tech ecosystem along the Front Range, which also includes national grant foundation Next50. If all goes well, future Equitage funds could be more Colorado-focused, Adam Kaplan said. They hope to raise a new one roughly every three to five years.
“We believe this opportunity with age-tech is a very durable one,” Hirsch said. “This doesn’t get totally resolved, unfortunately, even if we’re massively successful.”
Russell Hirsch, left, Adam Kaplan, middle, and Danny Kaplan, right. (Courtesy Equitage Ventures)
The fastest growing age demographic is those over age 85. By 2030, every baby boomer is going to be over age 65. By 2032, the Medicare budget is set to be twice that of 2022.
These facts were going through the minds of Adam Kaplan, Russell Hirsch and Danny Kaplan when they started Equitage Ventures. Now, after a year and a half of raising, the trio is ready to pour $47.3 million into senior health and tech for the aging demographic.
“I don’t see a way we’re going to take care of older adults without investing in tech,” said Hirsch, who co-founded a similar fund called Generator Ventures during his decadeslong investing career.
“Today’s aging demographic will define tomorrow’s economy,” he said.
Equitage, whose name combines “health equity” and “age,” will invest in early-stage companies across the senior health sector. Mental and behavioral health, living facility operations software and family caregiving support are all potential categories the three could add to their portfolio.
Though they haven’t signed any checks yet, they anticipate investing $250,000 to $2.5 million in each deal.
“We’re looking for anything that helps deliver more proactive and preventive care, and making those services more effective and accessible is an area that I’m very hopeful for,” said Adam Kaplan, who in 2016 founded Denver-based Solera Senior Living — a developer, operator and investor in senior communities.
He said consumer products specifically geared toward older people are another area Equitage will target.
“It’s been a demographic that’s mostly ignored because people want to spend their marketing dollars on Gen Z, because once they capture them, they have them for life,” Adam Kaplan said. “But this (older generation) is the demo that has disposable income.”
Though they didn’t disclose specific names, they said a publicly traded health care tech company and a prominent hospice agency are among Equitage’s roughly 70 investors. Danny Kaplan, who is not related to Adam Kaplan, said they will tap into that network to source potential portfolio companies and help them grow.
“Our ability to get that company in front of very large distribution channels and customers is very real, and that’s something that helps us stand out between raising and deploying capital,” said Danny Kaplan, who worked with Hirsch at Generator.
Hirsch noted that having a niche gave the group an advantage in a tough venture environment, especially for first-time funds.
“We turned a negative into a positive,” Hirsch said. “The individuals and entities who we raised capital from represent some of the biggest and most influential operators and corporations across the senior care and health care and long-term care world.
“We have this very highly curated (investor) base. While it’s not unique overall in the venture world, it’s highly unusual to go out and build your base around helping source companies, source entrepreneurs, evaluate operations and make decisions about investing in those operations,” he added.
Having Solera’s 16 national properties, including the local Modena Cherry Creek, to tap into and learn from is also a boon. Because they have been early adopters of innovative senior care solutions, that will help generate deal flow and provide a testing ground, Adam Kaplan said.
Modena Cherry Creek at 2240 S. Wabash St. (Courtesy Solera)
“We’re constantly looking for new products and services to validate, and it will help with opportunities that we’re sourcing before we decide to scale and make an investment,” he added. “And if we decide to invest, then we can work with the company again to refine the services and validate what they’re doing.”
Equitage considers itself a Denver-based fund. Adam Kaplan and Hirsch call the region home, while Danny Kaplan lives in San Diego. Firm adviser Jennifer Meyer, the former Dispatch Health chief revenue officer and current president of mental health company Sondermind, is also local.
Equitage’s investments will have no geographic bounds, but Hirsch and Adam Kaplan did say there might be a “Denver bias.”
“By us being here, we hope the companies will start here,” Hirsch said. “When you’re doing early-stage venture, proximity is a good thing. We’ll go anywhere, but if you can jump in your car and go to a board meeting, that’s a plus.”
They noted a burgeoning health-tech ecosystem along the Front Range, which also includes national grant foundation Next50. If all goes well, future Equitage funds could be more Colorado-focused, Adam Kaplan said. They hope to raise a new one roughly every three to five years.
“We believe this opportunity with age-tech is a very durable one,” Hirsch said. “This doesn’t get totally resolved, unfortunately, even if we’re massively successful.”
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