Millions of people around the world are affected by autism spectrum disorder (ASD). Both in childhood and later in life, these individuals and their families need better detection, treatment, and support solutions to help them live with autism. But until recently, it wasn't an area open to startups or investors.
Autism Impact Fund (AIF) pioneered when it was founded in 2021, three years after co-founder and managing partner Chris Mehl's son was diagnosed with ASD. The goal of the company, which Marais and others worked together on, was to become “the investment and innovation arm of the autism community,” Marais told TechCrunch.
Since then, startups in the neurodiversity space have gained momentum, and so has AIF, recently closing its first fund with $60 million. As a first-of-its-kind fund, exceeding our goals will not be easy, especially in an incredibly difficult environment. (The original goal was $50 million.)
AIF is a VC fund, not a charity, and Mahle has been vocal about that. “We have great partnerships with nonprofits and foundations and are very intentional about driving revenue. […] We aim to deliver tremendous returns while revolutionizing the status quo of autism and everything in this field through our venture capital model. ”
AIF's limited partners include Dara Khosrowshahi, CEO of Uber, Brian Jacobs of Emergence Capital Partners, and Bob Nelsen, co-founder and managing director of ARCH Venture Partners. is also a member of the advisory committee. Although the men did not want to discuss their personal stories, personal supporters at AIF often have a personal connection to autism.
But institutional LPs such as investment firms Fairfield Maxwell and Feld have also backed AIF, which “obviously was very helpful in getting us to that scale,” Marais said. It is also another sign of change. “The operators that are coming into this space are no longer just families who want to help out. Really sophisticated operators are seeing an opportunity to influence systemic change and that's really great. .”
wide portfolio
Some VC funds wait for a complete transaction to begin deploying capital, but AIF does not. We started investing at the close of our first deal because we needed to prove ourselves and our claims. The company's portfolio includes 12 startups and plans to launch a second round of funding in the next six to nine months, with Male already reporting inbound interest.
A strong validation signal is when a company in AIF's portfolio raises a follow-on round from other investors. For example, CVS Health Ventures led his $40 million Series D extension investment round in healthcare startup Cortica in October. Other signals are harder to measure, but still important. Marais told TechCrunch that AIF also has strong access to oversubscribed transactions, and even if the check isn't for the maximum amount, it's “an acknowledgment to the market and community that this is a verified and well-run organization. He said that he feels that it is a symbol of the ”
AIF still has the resources in its first fund to make a “handful” of deals and follow-on investments. After several “powerful bets”, the company's portfolio is incentivized to double down.And Mare said, “It's very likely that we'll exit within the next six months. So, very soon, because we… [starting deploying] In 2021. ”
Although AIF's portfolio is already very diverse, its website groups companies into two categories: life sciences and data and technology-enabled services. Others are working beyond the U.S., including Oticon, a German-based consulting firm that describes itself as an “autism-majority company,” and Helios, a British telemedicine platform. But it's not because there aren't enough deal flows and problems to deal with on its own in the future, it's going to diversify it further.
Marais said the AIF's decision to expand its coverage has to do with autism itself.
The definition of autism is so vague and broad that it doesn't really exist. [biologically precise] We need to understand exactly what is going on, so we need to expand our reach in order to help not only individuals but also families. And it's behavioral and mental health, all of those things, but also broader medical issues in the lens. The current social cost is in the trillions of dollars, and if the incidence continues to increase, the social cost will reach $15 trillion.Lack of employment and presence [un]This includes whether or not you can do your job. But it is as if society is sleepwalking into this incredible crisis, and there is currently no plan for it.
raising awareness
The fund will now allow investments in “behavioral health data-driven platforms, innovative healthcare solutions, and value-based care frameworks,” and AI “cannot be ignored,” Marais said. said. It will also continue to invest in addressing autism comorbidities, such as gastrointestinal issues. Then there are the “independence buckets” such as employment, economic independence, and housing.
The fact that Independence is on the list is a reminder that autism is a spectrum that needs to be addressed as its own, and that there is a business opportunity for startups that are not focused solely on children.
One adult-focused startup, neurodiversity employment network Mentra, is backed by Sam Altman and others, but not AIF. No beef there: Mentra has partnered with AIF-backed Oticon, and Mahle called the work they're doing “incredible.”
It's probably a good sign that AIF is not one of Mentra's investors. The space has become too large to find the same VC in all cap tables. Health tech Genial Care also raised $10 million to support autistic children and their families in Brazil, which is also global.
When asked if there hasn't been any recent momentum in establishing companies in this field, Marais laughed. “It's just fun to see the momentum and change” compared to five years ago, he explained. As investors become busier, the number will likely increase further in the future.