In October 2024, Julie Wroblewski and Joanna Drake, cofounders of Magnify Ventures, prepared for a critical limited partner meeting to outline their strategy for Fund II. Having successfully deployed $52 million across 20+ startups in their first fund focused on the Care Economy—a $648 billion sector encompassing infant and childcare, care for older adults, and household management—the partners now faced strategic decisions about their future investment approach. Wroblewski’s journey from certified nursing assistant in rural Minnesota to venture capitalist exemplified the personal experiences driving Care Economy innovation. The case explores the complexities of investing in care through examination of portfolio companies: Kinside (AI-driven childcare marketplace), Papa (college student-elder companion matching), and Cocoon (employee leave management software). The case reveals fundamental differences between childcare and eldercare investments. Childcare proved significantly harder to scale due to hyper-local regulations, lower margins, and the absence of Medicare-like reimbursement systems. As Wroblewski noted, “Child care is dominated by small, independent providers operating in localized markets…making child care significantly harder to scale” compared to eldercare’s more consolidated infrastructure. As AI advances created new possibilities, Wroblewski and Drake refined their Fund II strategy to focus on new technology applications and expanding venture scalable consumer solutions around four themes. The case examines how policy changes, multiple payer dynamics, and emerging technologies intersect to create both opportunities and challenges for Care Economy entrepreneurs seeking to balance venture returns with societal impact.
