Solving the Social Disease of 'Loneliness' with Technology?… US Investors Show 'Interest'

'Loneliness Solution' Startups Receive Consecutive Investments
Building Communities and Checking Risks with Algorithms
US and UK Take National-Level Measures Against Loneliness

As analyses pour in suggesting loneliness is a new social disease, startups possessing technology to solve loneliness are capturing the attention of investors, particularly among venture capital firms in the United States. Investments are continuing in startups addressing loneliness or isolation issues, such as those that form communities or use algorithms to identify people likely to feel lonely.

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US economic media Business Insider recently reported that loneliness is being discussed as a major investment topic among US venture investors. Given that loneliness is becoming an issue that increases social costs in the long term, investors are putting money into startups and services that provide solutions to help those experiencing loneliness while reducing costs.

Meeno, a startup founded by Renita Nibog, former CEO of the social dating application Tinder, received investment last month from global venture capital firms including Sequoia. Meeno uses artificial intelligence (AI) to mentor human relationships for young people feeling lonely. Nibog pointed out, "The loneliness crisis is bigger and more urgent than anything else."

Investor Hugo Amselm said, "I don't think AI as a friend will simply engage in conversations with humans or replace human friendships," adding, "I believe AI will act to connect humans and facilitate human relationships."

Startups with technology that helps form social relationships to solve loneliness have attracted attention in recent years.

Earlier, Wisdo Health, a startup based in New York, completed a $11 million Series A funding round in January. This company provides social health communities covering mental health, physical health, identity, family, and more, helping people form communities and share information about treatments. It supports patients not to undergo treatment alone but to communicate and unite with others suffering from the same illness to fight the disease together.

Wisdo’s founder, Boaz Gaon, created the company after feeling regret that his father, who died in 2008 from kidney cancer and leukemia, did not receive social support during his battle. Gaon said that shortly after founding the company in 2016, billionaire venture investor and Netscape browser founder Marc Andreessen used the term "the loneliness market" when hearing Gaon’s vision, which left a strong impression on him.

Pyx Health, a startup based in Arizona, received investment this summer from Minneapolis-based healthcare-focused private equity firm TT Capital Partners. Pyx Health possesses technology that analyzes various data such as personal health information and whether someone lives alone through algorithms to predict the risk of experiencing loneliness. This enables proactive responses before health problems arise.

Peoplehood, a New York-based startup founded in 2011, operates a platform that builds communities and promotes face-to-face or online group conversations. The company expanded its business last year after receiving investment from US venture capital firm Mavron.

The reason investors have begun actively investing in startups that form social relationships is that loneliness is emerging as a social disease. The UK government established the first-ever national "Loneliness Department" in 2018 to address loneliness at the national level, investing to create networks that enable public, private, and civic organizations to jointly tackle this issue.

Vivek Murthy, US Surgeon General of the Department of Health and Human Services, stated in May that loneliness is as dangerous as smoking 15 cigarettes a day, calling it a "serious public health issue." Reports indicate that loneliness causes employers in the US to lose $154 billion annually, and social isolation among the elderly results in $6.7 billion in excess Medicare spending each year.

However, Business Insider pointed out that there are also skeptical views on whether technology can truly solve loneliness. Despite the spread of social networking services (SNS) such as Facebook in recent years, concerns exist that these platforms may actually worsen loneliness in some cases. According to a Bloomberg report last year, Facebook’s internal report from 2018 included a survey in which 36% of users said they felt lonely.

Betsy Hoover, founder of venture capital firm Higher Ground Labs, evaluated that startups are striving to contribute to finding solutions and that this field is still in its early stages.

This content was produced with the assistance of AI translation services.