In a significant development for the long-term care (LTC) industry, Waterlily (http://www.waterlily.com) has secured $7 million in seed funding to advance its AI-driven platform that helps families and advisors navigate the complex landscape of long-term care planning. The oversubscribed round attracted notable investors including Brewer Lane Ventures and Great North Ventures alongside strategic investments from insurance giants Genworth, Nationwide and Edward Jones.
The timing couldn’t be more critical. With more than half of the aging population expected to require significant long-term care—facing average out-of-pocket expenses exceeding $240,000—the need for better planning tools has never been more urgent. This market opportunity is further amplified by recent state initiatives introducing payroll tax mandates to fund long-term care, creating a compelling incentive for individuals to seek private LTC insurance alternatives.
Revolutionary Approach to Long-Term Care Planning
What sets Waterlily apart is its sophisticated AI engine that processes over 500 million proprietary data points to predict long-term care needs decades in advance. Through a simple 3-minute intake form, the platform generates detailed insights about potential care requirements, costs, and family impact. Most impressively, the platform in early trials has achieved a remarkably high conversion rate for insurance policy and annuity purchases—at 100 times higher than typical industry standards.
“The long-term care crisis affects virtually every family in America, yet traditional approaches to planning have failed to address this trillion-dollar challenge,” says Ryan Weber, Managing Partner at Great North Ventures. “What impressed us most about Waterlily wasn’t just their cutting-edge technology, but how they’ve transformed a traditionally uncomfortable conversation into an empowering experience that drives real action. This is the kind of innovation that could reshape an entire industry.”
Founded from Personal Experience
The company’s mission stems from personal experience. CEO and Co-founder Lily Vittayarukskul, a former aerospace engineer who entered college at 14 and interned at NASA by 16, pivoted to healthcare innovation after witnessing her aunt’s battle with terminal cancer and the associated financial challenges. Her co-founder, Evan Ehrenberg, brings equally impressive credentials, having started at UC Berkeley at age 11 before earning a Ph.D. in Computational Neuroscience from MIT and founding Clara Health.
Recognition and Growth
Since their launch in early 2024, Waterlily has gained significant traction and recognition. The company was recently highlighted at the World Economic Forum in Davos for its innovative approach to addressing global challenges in finance and healthcare. In October 2024, they secured Sureify’s Startup Innovation Award at Insurance Tech Connect, further validating their approach to this critical market need. In August 2024, Gener8tor’s Insurance and Wealth Accelerator announced its support for the company, backed by industry leaders Allianz Life and Securian Financial. “I’m privileged to collaborate with visionary entrepreneurs providing solutions for families, advisors, and operators,” said Eddie Olson, Senior Managing Director of the Gener8tor Insurance & Wealth Accelerator. “These companies are addressing critical needs and driving meaningful change.”
With this new funding, Waterlily plans to expand its enterprise account management and engineering teams to support growing client demand. The company’s platform is particularly valuable for financial advisors, who have a fiduciary duty to address long-term care planning but often struggle with these sensitive discussions. By providing data-driven insights and actionable recommendations, Waterlily helps transform these challenging conversations into productive planning sessions.
Market Impact and Future Potential
The long-term care market represents a massive opportunity, with the U.S. facing a multi-trillion-dollar Medicaid cost burden for unplanned care needs. As states increasingly implement payroll tax mandates to address this crisis, the demand for private LTC insurance alternatives is expected to surge. Waterlily’s platform is uniquely positioned to capitalize on this trend by making long-term care planning more accessible, data-driven, and actionable.
For those interested in joining Waterlily’s mission to revolutionize long-term care planning, the company is actively hiring across several positions, particularly in enterprise account management and engineering roles. (https://www.waterlily.com/careers).
See TechCrunch coverage that dropped today covering the company and this important milestone.
