In Pursuit of Balance: The Wellness of Revolution
& The VC’s on the Front Lines
By Relevance Ventures
A new perspective in the venture capital world is rising- one that prioritizes wellness as the basis of an investment strategy. Relevance Ventures, led by founders Dean and Cameron Newton (brothers), is spearheading the shift. This non-standard approach to venture capital stems in part from their Native American heritage - and also our firm’s recent successes investing in wellness companies.
All data concur: wellness is a booming sector. According to the Global Wellness Institute, the global health and wellness market size is projected to reach approximately $9 trillion by the end of 2030. The explosion of market demand for wellness solutions is linked to global trends, fueled by rising awareness of the power of prevention in decreasing dependencies on healthcare and pharma, as well as increased individual empowerment to make one’s own health-related choices.
In recent decades, vast economic, technological, social, and environmental changes have transformed every aspect of our lives, contributing to structural imbalances readily observed in our ecosystems and communities, and often felt in our daily lives.
The exponential growth of the health and wellness economy is fundamentally a market response to increased awareness of these imbalances and a desire to impact outcomes at every level through personal choices. The pandemic undoubtedly accelerated this response, forcing every business – indeed every person – to evaluate everyday choices through a lens of how those choices impact individual and community wellbeing. As corporate and individual consumers seek to restore balance to imbalanced systems, the pursuit of wellbeing will continue to be a major societal and economic force. This growth, coupled with next-generation creative technologies that blur the lines between the physical, digital, and biological spheres, foretells a wellness revolution is in the making.
The wellness revolution affords capital allocators a remarkable opportunity to recognize financial gains while investing in a restorative future. As people become increasingly conscious of their health and well-being, investments in wellness-oriented businesses offer significant growth potential and opportunities for positive societal impact, making it a values-aligned, strategic fit for our team.
Dean frequently writes on this topic, describing the long-term value generated for LPs by investing in wellness as a self-reinforcing circle that shifts communities onto a path of thriving instead of surviving. “An investment into a wellness company can be incredibly profitable [for LPs] but also reduces costs in the traditional health care system, improves productivity in businesses, contributes to sustainable ecosystems, and empowers everyday consumers to take ownership of their health.” The unique lens with which the firm evaluates potential investments stems from the brothers’ Native heritage. “We caught the rising tsunami of wellness growth before others because we were on the lookout for market opportunities that bring balance to our lives.”
Dean’s journey to joining Relevance Ventures was anything but straightforward. After graduating Harvard Law School and clerking for the federal Seventh Circuit Court of Appeals, Dean moved to Los Angeles to practice law in the entertainment business. Dean soon found himself leading business affairs for 550 Digital, Sony’s venture and incubation arm, before he heeded the call to become a tech entrepreneur. Starting in the late 90’s he launched a series of tech ventures that were acquired. When his brother invited him to move to Tennessee and join Relevance, giving Dean a chance to work more closely with entrepreneurs, he didn’t hesitate. “A lot of our success comes from the value we bring besides the money we invest. We do this work because we enjoy the founders, we enjoy the business they're in, we really believe in them.”
As the firm started to write larger checks, and the firm sought out sectors that marry Native values with market opportunities and our determination to move capital into under-capitalized sectors, like wellness. It also affords us an opportunity to engage entrepreneurs still overlooked in the venture landscape. “The wellness space sees more minority and people of color founders than you do in other verticals. Still, a lot of wellness products and services today are still a rich man’s game -- and we can do better than that. We can invest in areas where we help assuage that dynamic.”
Dean went on to describe why the wellness sector makes sense for the firm: “Beyond the sector’s potential, we are based in Nashville, an epicenter of healthcare excellence, where market demand for non-traditional healthcare solutions is soaring, and we understand this growth and opportunity in a unique way,” he explained.
In recent years, our firm has been at the forefront of redefining wellness to reflect the evolving attitudes of businesses and consumers alike. In the face of significant economic, technological, and societal changes, we have often been out front, recognizing the growing demand for holistic solutions that address imbalances in our ecosystems and communities. Using our unique understanding of these market forces, we have helped to capitalize the growth of the health and wellness economy, having invested in 21 health and wellness companies.
Some of our investment choices may seem unconventional within a narrow definition of wellness - but have proven prescient. One example is the decision to invest in PetScreening, a premier pet policy management software. A dog lover himself, Dean quickly testifies to the positive mental impact a pet can have on their owner’s overall well-being. “Pets are family. We make decisions about our lives that nurture our relationships with our pets. PetScreening serves nearly 5 million households nationally today because pets are essential to our well-being.” This assertion is backed by data revealing that 74% of pet owners report mental health improvements from pet ownership, as highlighted in a research survey by the Human-Animal Bond Research Institute.
Our investment in PetScreening underscores our commitment to supporting innovative ventures that resonate with evolving consumer needs and contribute to holistic wellness. ”Investing in wellness isn’t just a business strategy – it’s a mission.” Dean emphasized. He highlights his Native background, which gravitates towards whole-person wellness solutions over traditional healthcare approaches.
Our team’s decision to shift toward wellness and inject larger capital infusions into wellness companies preceded the pandemic but gathered momentum in its aftermath. The pandemic accelerated the growth of all wellness sectors, prompting consumers and businesses to rethink their choices through a lens of personal and community well-being, underscoring the importance of health and wellness. "People now realize in a very stark way that there are advantages to a healthy lifestyle," Dean said, explaining the decision to fully embrace a health and wellness investment strategy in our next fund.
Today, we find our strategy excites a broader audience of investors, consumers, and business leaders who share our determination to identify lucrative investment opportunities that contribute to a sustainable, equitable future. This vision is deeply personal to the founders who have built their successes in a landscape at times lacking Native founder participation. "We believe in the power, wisdom, and potential of Native people,” Dean told Tribal Business News. “Our people have all the right ingredients for success except access.”
The landscape of venture capital has evolved significantly over the past decade, with decentralization paving the way for diverse investment opportunities. Dean notes the importance of strategic partnerships in achieving Relevance Ventures' objectives, emphasizing the collaboration with organizations like Skoden Ventures and NACIA (Native American Capital and Investment Alliance) to foster future generations of growth companies led by Native founders.
“In partnership with Skoden and NACIA we are launching tribal engagement efforts to reach out and work with tribal communities - hopefully providing seed capital to those underserved populations, when they've got investable opportunities,” Dean states.
By supporting Native founders with access to investment, educational resources, and connections to the tech innovation ecosystem, the trifecta is actively uplifting Native communities. NACIA creates educational resources and networks, access to equity investment, including venture capital and alternative debt funding, and helps foster economic growth within Indigenous communities. Similarly, Skoden Ventures, a seed fund dedicated to Indigenous, Black, Brown, and women founders, envisions unlocking the creative potential in Native communities. “We're thrilled to work alongside Relevance Ventures, a Native American owned and operated venture fund with a long-standing track record of success, to invest in wellness with a more impact-minded approach,” says Kelly Holmes of Skoden.
As Relevance Ventures continues to lead the way in health and wellness investing, our vision for a sustainable, equitable approach to living well defies the bloated, broken systems of traditional healthcare, equipping businesses and consumers to chart their own path toward a restorative and balanced life.