General Catalyst-backed eldercare startup Lottie raises €19.9M led by Accel

London-based Lottie, an online marketplace connecting care seekers with UK care homes, home care services, and retirement living communities, announced that it has secured $21M (approximately €19.94M) in a Series A round of funding.

The latest investment was led by Accel, with participation from General Catalyst. This round brings Lottie’s total funding to $31M (approximately €29.37M).

Find the UK’s best care homes and retirement living communities

The UK is facing a care home crisis with the lowest availability in a decade due to an ageing population and insufficient state funding. Government data reveals a £2.3B shortfall in care home funding in England. 

Care seekers experience stress and confusion, contacting an average of six services before finding suitable care. There’s a lack of clear information on costs and services, making it a distressing and challenging process. 

Addressing the crisis requires increased funding, transparency, and streamlined processes to support the ageing population and their families. This is where Lottie looks to make a difference.

Founded in 2021 by brothers Will and Chris Donnelly, Lottie aims to revolutionise the process of finding care for the elderly in the UK. The platform serves as an end-to-end marketplace, simplifying the search for care services. 

Lottie allows users to find, compare, and directly inquire with over 4,000 high-quality care, home care, and retirement living services. It offers full transparency of pricing and service availability, enabling care seekers to see costs and service availability upfront. 

The company’s goal is to elevate the quality of later life by modernising the care search process and ensuring improved standards across the sector.

“Found” by Lottie

Lottie, beyond its care marketplace, has developed Found by Lottie, a suite of technology tools acquired in 2022. This innovation aims to upgrade services within care homes by offering tools for managing enquiries, customer relationships, occupancy, finance, and real-time bed availability. 

By working towards “instant bed bookings”, Found could alleviate winter pressures on the NHS by solving the inefficiencies and costly processes associated with patient discharge and ‘bed-blocking’ crises.

The London-based startup claims to have seen significant growth, connecting tens of thousands of families with care services. With a 300 per cent increase in customers and revenue in the past year, the platform now boasts over 500,000 monthly users. 

Lottie recently expanded its offerings to include home care, introducing a Direct to Carer solution, allowing families to book high-quality carers directly, and enhancing choice and control in the selection process.

Capital utilisation

Lottie says it will use the funds to expand its marketplace coverage in the UK, develop innovative software solutions for care homes and double its 50-person team in London by 2024.

The company will focus on investing in AI technology and creating a data insight tool. This approach aims to enhance efficiency, make informed decisions for stakeholders, and promote the long-term sustainability of the care home industry.

Will Donnelly says, “Everyone deserves the best possible quality of life in their later years, and Lottie is helping to drive real change in the care search process, while supporting our provider partners in delivering better health outcomes for residents, improved operational efficiencies and huge cost savings via our software products.”

“Our goal for Lottie is to become the trusted adviser to care seekers throughout the world – helping families best understand, find and fund later life care. Over 500,000 Britons now visit Lottie every month, and we’re incredibly excited to have Accel join General Catalyst and Kindred on our journey, helping to fuel our next stage of growth and continue in our mission to elevate later life for everybody.”

Brief about the investors

Accel is a global venture capital firm that supports exceptional teams, including companies like Atlassian, Slack, and Spotify, in their growth journey from inception to global success.

Sonali De Rycker, Partner at Accel says, “Digital marketplaces have transformed our lives. We expect glossy, transparent, low-touch experiences when booking holidays, buying groceries and doing everything in-between. For some reason, eldercare has been left behind.”

“Will and Chris are on a mission to level up an industry stuck in the dark ages. Lottie offers consumers the modern discovery and booking experience they deserve when finding help for loved ones.”

“In parallel, they offer care providers a suite of tools to shift online and upgrade their operations. Meeting Will and Chris is an experience you won’t forget: they’re an ambitious, high-integrity team chasing a significant and important opportunity. We’re excited to be part of their journey,” adds Rycker.

General Catalyst is a venture capital firm supporting innovative entrepreneurs from seed to growth stage and beyond. It invests in companies challenging the status quo, and fostering enduring positive change. Notable investments include Airbnb, Stripe, and Warby Parker.

Chris Bischoff, MD at General Catalyst says, “We believe the Lottie team has made great strides in their mission to provide transparency and support for families searching for quality care.”

“They have demonstrated the ability to collaborate with care partners who share their commitment to modernising home care with sustainability, safety, and quality of life in mind. These values align with our Health Assurance thesis and we are excited to participate in their positive impact and continued growth,” adds Bischoff.