Famtech or “family technology” harnesses the power of technology to reduce the challenges and complexities around family responsibilities. Famtech tools are designed to enable and empower families and seek to improve their overall well-being, productivity, and experience. This includes digital tools to manage household responsibilities, track what children are doing, find care and free up personal time. The struggles of parenting are turning into opportunities for VCs to invest in the famtech sector to make everything — including finding childcare and managing a household — easier.
The care economy is an expansive and evolving market worth more than $648 billion. The famtech industry has seen significant growth in activity fueled in part by the pandemic, as well as the desire to create more work-life balance and employee retention.
These famtech developments have become an increasingly important sector as technology continues to play a larger role in our daily lives. As families become busier and more connected, the need for technology that can help manage their lives more efficiently has grown. Increasingly, startup entrepreneurs and investors are taking notice and working to address this gap as part of the growing famtech sector.
Every company will need to be a technology company if they want to attract and retain talent, supporting employees and families both from a social good and commercial perspective. Figuring out how to best build these initiatives to support individuals as well as businesses will be crucial to rebuild the economy and support employees, families, and the public.
The Business of Famtech
As famtech becomes increasingly important, it makes good business sense to rethink tech through the lens of families. Famtech is technology that helps parents navigate the new and ongoing challenges of working and raising children in a post-Covid world. It is about making families stronger and the future for our children safer, as well as addressing business needs and opportunities.
Famtech encompasses a wide range of products and services, including but not limited to:
- Smart home devices, including smart thermostats, smart locks, and smart lighting systems that allow homeowners to control their home’s environment remotely and automatically.
- Parenting and childcare apps to help parents manage their children’s schedules, track milestones, and connect with other parents for support.
- Family communication and organization apps designed to help families manage their schedules, communicate with each other, and stay organized.
- Medical healthcare tools such as telehealth visits to simplify the healthcare process. This provides the health care sector with new opportunities for flexibility and availability that families need.
- Lifestyle and mental health education apps designed to provide solutions for mental health education and lifestyle management.
- Family health and wellness apps designed to help families manage their health and wellness, including apps for tracking fitness goals, managing nutrition, and monitoring mental health.
- Education initiatives, including remote learning.
- Famtech solutions also include
- Video collaboration platforms
- Digital Assistants, e.g., Siri, Alexa, Google
- Remote monitoring, e.g, health
E-commerce has also provided strong opportunities to streamline lifestyles, responding to changes in consumer dynamics through retail, supermarket, and pharmacy home deliveries. By 2040, it is estimated that 95% of purchases will be facilitated by e-commerce.
NY Government and Famtech Developments
Both New York State and New York City governments understand the need for famtech developments. They are partnering on an actionable blueprint for transformative change, Making New York Work for Everyone. The report was released in December 2022 and the recommendations have been adopted by both New York City Mayor Eric Adams and New York Governor Kathy Hochul.
NYC is increasing its tech infrastructure with a focus on tech equity. This builds on efforts to share and manage citywide data and information, increase the public’s use of City government information through NYC.gov and increase digital services in municipal government. Procurement processes will be also improved through better technology to help the application process and get companies paid.
In March 2023, Mayor Adams announced the launch of the first phase of MyCity, an online portal that will streamline access to City services and benefits, including child care assistance. In 2022, New York City’s Office of Technology and Innovation (OTI) launched a pair of cornerstone digital equity projects—Big Apple Connect bringing highspeed internet and basic cable to NYCHA developments and Link5G—that ensure greater online connectivity for underserved New Yorkers.
Gov. Hochul has also announced a new online tool to help New Yorkers access child care. Building on the state’s investment in this area, the online tool will make it easier for families to check eligibility for child care assistance as well as streamline the application process. “As a mother who put her career on pause due to a lack of affordable childcare, I understand first-hand how important this lifeline is for families,” said Hochul.
Productivity and Famtech
Famtech initiatives provide tools for meaningful support personally as well as professionally, with an important focus on increased general productivity. While the pandemic highlighted the growing importance of this sector, the need has been documented as far back as 2006. Estimates at the time noted that “by not adapting to the needs of working parents, U.S. employers might be losing as much as $300 billion a year in lost productivity” from parents distracted by managing and finding care solutions for kids. A 2019 Forbes article estimated this “new mom economy” at $46 billion.
Studies show that mothers are the primary breadwinners in four-in-ten U.S. families. So, workplace flexibility is now a given—there is a critical need for working parents to get support and tools to reduce the friction between work and home.
Famtech companies create digital tools that enable and empower the productivity, functionality, experience, and well-being of families. The goal is to simplify the intersection of work and family by creating value for everyone—a win-win scenario—whether individuals are caring for the young, ill, or aging.
Capalino Drives Famtech Growth
Capalino has been at the forefront helping build this new famtech sector. Through our technology services we help businesses identify strategic growth opportunities, execute them, and drive business growth. We also help companies and government address the needs of employees through social impact and corporate social responsibility (CSR) programs, including tech equity, future of work and employee relations. In addition, we leverage our lobbying expertise, working with government to implement innovative technologies and with companies to navigate any regulatory challenges.
The opportunity is now for fast adopters and industry leaders to lead on famtech. During this time of uncertainty, we need leaders who collaborate with families to understand how best to meet their needs. This level of collaboration and understanding across all industries will see families and women better empowered to contribute and succeed as we rebuild the economy, our businesses, and our lives together.
To learn more about how Capalino help your business succeed, contact Michael O’Boyle at firstname.lastname@example.org or Jeanne Mullgrav at email@example.com.