Pivotal Urges Lawmakers, Investors, Employers, and Philanthropists to Prioritize Support for Caregivers

Increased Market Innovation and Investment

Over the past five years, the growth rate of venture capital investment in the care economy has outpaced the overall market—yet there’s still far too much overlooked opportunity. In 2019, a research report showed that the care economy was valued at $648 billion, and it has only grown since then.

With an eye toward both high financial returns and social impact, Pivotal Ventures has invested in Magnify Ventures, a fund focused on building technology companies that reimagine life for modern families, from childbirth to end-of-life care. Additionally, Pivotal Ventures invests directly in startups in the care economy, including Little Otter, Mon Ami, and Summer Health.

Expanded Employer Caregiving Benefits

Since the pandemic, employers have stepped up to provide caregiving benefits and supplement the cost of care with more flexible work schedules and paid family leave—but there’s far more progress to be made.

Two recent groundbreaking studies have quantified the benefit to employers of investing in care. Harvard Business School demonstrated how offering care benefits can save businesses money, chiefly by improving attendance and employee retention. Additionally, a 2024 study by BCG, in collaboration with Moms First, also found a positive return on investment for companies offering child care benefits—from 90 percent to as high as 425 percent.

With more data available to showcase the value of providing caregiving benefits to employees, the focus is now on the approach. Pivotal’s partner Executives Partnering to Invest in Children (EPIC) recently launched an Employer Child Care Navigator that helps employers identify the child care solutions that best meet their specific needs.

Broad Bipartisan Support from Lawmakers

Federal, state, and local governments are driving progress by introducing policies that support family caregivers, increase access to care, and improve the quality of caregiving jobs—something that voters across party lines support. A 2024 survey revealed that 82 percent of voters want policymakers to support increased investments that make it easier for people to care for their loved ones.

Lawmakers who are interested in supporting caregiving solutions can find guidance from organizations like First Five Years Fund, which focuses on building federal support for access to affordable quality child care and early learning programs. These policies range from the Child and Dependent Care Tax Credit to the Child Care & Development Block Grant, both of which help working families offset the high costs of child care.

Potential for the Philanthropic Sector to Make Broader Progress

Since its founding, Pivotal has focused on issues that serve as a catalyst for broader societal change. That’s why Pivotal prioritizes care—because fixing the caregiving crisis would be a force multiplier, providing more options for women so they have choice and agency in pursuing careers, leading their communities, and building their economic power. Any philanthropist who cares about advancing societal and economic progress in this country should prioritize caregiving.

To read more about Pivotal’s work in caregiving, visit Caregiving.