Melinda French Gates Backs $46.6M Fund II Targeting AI-Driven Care Economy Solutions

Melinda Gates' venture firm backs Magnify Ventures' $46.6M Fund II

Early-stage firm Magnify Ventures has raised $46.6 million for its second fund from LPs including Melinda French Gates' Pivotal Ventures. Founded in 2021 by Joanna Drake and Julie Wroblewski, Magnify invests in companies that target the care economy, such as those building assistive robotics, family cybersecurity, and AI for home use. The firm said Fund II will invest in companies that build AI tools for households, health and home systems, and fintech infrastructure for families. The venture firm last raised a $52 million Fund I in 2022 (Pivotal Ventures anchored that fund), and has backed child care startup Kinside and children's expense management startup Till Financial (in which Pivotal Ventures was also an investor). Pivotal Ventures generally acts as a GP and LP, backing companies building in the care economy. Its investments include caregiving startups Papa (in which Magnify Ventures was also an investor) and Seen Health.

While AI Reshapes Every Industry, Melinda French Gates Is Quietly Betting Millions on a $648 Billion Mark

Melinda French Gates is doubling down on the care economy. Her investment firm, Pivotal Ventures, has returned as a key backer of Magnify Ventures, which closed a $46.6 million second fund on Wednesday to invest in AI companies transforming how families manage health, wealth, and caregiving. New investors Jordan Park and Unum joined the fund alongside financing from California's IBank. The close brings Magnify's total capital to nearly $100 million across two funds -- Fund I raised $52 million and backed 21 companies. Fund II has not yet begun deploying capital. Why Now Venture interest in the care economy has accelerated 45% over the past four years, with more than $26 billion invested across 700 companies since 2015, according to The Holding Co. in partnership with Pivotal Ventures. Magnify sees AI as the key unlock for markets it describes as long stagnant. "We're at a real inflection point in some of the world's largest, most underleveraged markets: care, wealth, aging, and the broader health, consumer and financial systems that shape family life," said Julie Wroblewski, co-founder and managing partner of Magnify Ventures. "AI is the key to unlocking new opportunities in markets that have been stagnant for decades." The Pivotal Connection Pivotal's endorsement is more than financial. Erin Harkless Moore, managing director of investments at Pivotal, called the care economy a "$648 billion market opportunity" that has long been under-resourced. "Investing in caregiving benefits not only women and families, but also the broader economy," Moore said. Pivotal Ventures invests in companies and funds that, alongside its work in policy advocacy and philanthropy, help to advance women's power -- making the care economy a natural fit for its mandate. Magnify's existing portfolio includes estate settlement platform Alix, caregiver support tech Nolia Health, and cybersecurity protection firm Savi Security. Image via Shutterstock Image Credit: H. DARR BEISER/Reuters Connect/ Imagn Images Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.