Waterlily: Navigating the Future of Long-Term Care with AI

Waterlily is a cutting-edge startup based in San Francisco that uses artificial intelligence to predict and plan for long-term care needs. Founded by Lily Vittayarukskul in December 2021, the company focuses on providing tools to financial advisors and insurance agents, enabling them to offer personalized long-term care solutions. With a mission to ease the financial burden of long-term care, Waterlily leverages a vast array of data points and machine learning to predict future care needs and associated costs.

Idea and Product

Waterlily’s platform is designed to predict a family’s future long-term care needs using AI, providing a tailored care plan and financial strategy. It allows users to input their social, financial, and medical information through an intake questionnaire, after which the AI predicts the likelihood of needing long-term care, the potential age of onset, and the progression of care needs. This platform serves as a critical tool for proactive financial planning in the face of aging and health-related uncertainties.

Market

The market for long-term care solutions is vast and growing, driven by an aging population and the increasing cost of healthcare. Many Americans are unprepared for the financial impact of long-term care, a gap Waterlily aims to fill. Its market includes not only individual consumers and families but also financial advisors and insurance providers who require advanced tools to better serve their clients.

Business Model

Waterlily operates on a SaaS (Software as a Service) model, charging a monthly fee of $250 per advisor or agent seat. This model provides the company with a steady stream of monthly recurring revenue (MRR), which has shown significant growth since its platform’s public launch. Waterlily’s revenue strategy is anchored in providing valuable, actionable insights to financial professionals managing long-term care planning.

Technology

Waterlily’s technology is based on a sophisticated AI algorithm that analyzes over 500 million data points from various sources, including government databases, academic research, and private healthcare providers. This extensive data collection enables the platform to make highly personalized predictions about long-term care needs, which are crucial for accurate planning and decision-making.

Vision and Ambition

Waterlily is driven by a vision to transform the approach to healthcare and financial planning by making predictive healthcare data accessible and actionable. The company aims to expand its offerings beyond long-term care to include disability, critical illness, and Medicare planning, potentially growing its impact on a global scale.

Team

The Waterlily team is led by CEO Lily Vittayarukskul, an experienced product and engineering leader with a personal connection to the challenges of long-term care. COO Evan Ehrenberg, a former neuroscience PhD candidate and startup founder, brings expertise in AI and machine learning to the team. Together, they aim to drive innovation and deliver solutions that address real-world challenges in healthcare and financial planning.

Investors and Funding

Waterlily has raised $7 million in seed funding led by John Kim of Brewer Lane Ventures, with contributions from notable firms like Genworth, Nationwide, and Edward Jones. This follows a $2.2 million pre-seed round, indicating strong investor confidence in the startup’s potential to disrupt the long-term care market.

Achievements and Milestones

Since its inception, Waterlily has quickly scaled its operations and significantly increased its MRR, reflecting a strong market demand for its services. The platform’s launch and the rapid acquisition of major enterprise customers, including several Fortune 100 companies, underscore its early success and the effectiveness of its predictive modeling.

Challenges and Risks

The primary challenges for Waterlily include navigating the complex regulatory environment of healthcare data, ensuring the security and privacy of sensitive information, and maintaining the accuracy and impartiality of its AI predictions. Additionally, broadening its customer base and enhancing its technology to keep pace with evolving healthcare and insurance landscapes remain ongoing challenges.

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Sources:
Waterlily.com
Waterlily, a startup using AI to predict long-term care needs, clinches $7M in seed round
This Bay Area startup is using AI to help families navigate long-term care planning

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