Tom Murphy
RedwoodAge.com

The financial power of the boomer market has been well documented in hundreds of research studies, magazine articles and government surveys: the 77 million Americans between the ages of 44 and 62 spend about $2 trillion a year and control about 91 percent of the nation's wealth.

Siamak Sani and his $25 hearing aid.

So it doesn't require an MBA to understand why many young companies are eager to serve this group. However, convincing venture capitalists to back these startups is quite another matter.

Some of these promising startups will be featured Tuesday at the 2008 Boomer Venture Summit, a competition that awards a $10,000 first prize to the fledgling companies with the best potential to cash in on the graying of America.

The Summit, hosted by Santa Clara University in the heart of Silicon Valley, not only attracts entrepreneurs, but also large corporations, giant venture capital funds and nonprofit endeavors seeking clues about what boomers really want. Companies like Johnson & Johnson and Intel have shown consistent interest in the annual boomer-fest, along with AARP, the 800-pound gorilla of the aging movement.

"They're coming and viewing this as a place to get the latest ideas and also to network with the nonprofits because, in aging, it's a for-profit/nonprofit story," said Mary Furlong, the entrepreneur, author and educator who has been running the show since its inception in 2003.

"It's a really nice blend of groups that believe enough in what we're doing to help build the church," she said in an interview with RedwoodAge. "I lump all this under the notion that we're building a Silver Enterprise Zone."

Easier Said
That's not to say the opportunities are abounding for the young companies. Contrary to the popular vision of VCs pledging millions to help nurture fresh ideas, entrepreneurs know all to well that most companies fail for lack of support - even those whose ideas have garnered praise at events like the summit. (Editor's note: RedwoodAge is actively involved in fundraising.)

The World Hearing Organization, for example, won raves at the 2007 summit, taking home the $10,000 grand prize for a plan to bring low-cost hearing aids to the 99.5 percent of the hearing-impaired population that can't affort them. The company's presentation featured a prototype of a $25 hearing aid that could be customized to an individual's needs easily, anywhere in the world.

Company CEO Siamak Sani was nearly in tears when his company was named the contest winner, confident the publicity would lead to the additional funding he needed to get his concept from prototype to field production. But a year later, he's still waiting.

"Initially, with our follow-up, we had some interest, but none actually resulted in any funding," he said. "We are still seeking funding and until we secure the initial round, we will not see significant growth."

Like many entrepreneurs, Sani simply can't understand why venture investors with great resources at their disposal won't leap at the chance to make the world a better place while also generating huge returns on investment.

"A $10 million investment in WHO Inc. can facilitate production of a $25 hearing aid, which is a 100-times reduction from the current $2,500 average price," he noted in an email. "We will not relinquish our mission and dream and will continue to look for partners and funding."

Opening Doors
Things may be changing, according to Furlong. When she first started the conference, she said it was difficult to get people to think of "aging" and "innovation" at the same time. Now, there seems to be widespread recognition of  a potentially lucrative market opportunity.

"Pretty soon we're going to have a knowledge network built around 'Who's in what kind of work?' and 'How can we leverage the work that his group is doing?,'" she predicted. "If we take a look at the needs of financial solvency in your later years, or mobility, or cognitive fitness, we're seeing innovations in all those categories. Six years ago, you never would have seen that."

This Year's Finalists
The finalists in this year's venture summit fall into two categories: health and general.

Health:

Cansil Diagnostics, which makes diagnostic devices;

CorTech Labs, which provides medical device software products and online services;

Dialog Devices, a British firm making optical devices;

Niveus Medical, which make electrical muscle stimulation systems; and

Radiogenic Therapeutics, which develops a less-invasive system for radiation therapy.

General:

About Face Technologies, which provides visually intuitive assistive technologies;

Caresquare.com, a social network for seniors;

Home Preferred, a retail chain for those who want to age in place;

In My Life, a portal offering interactive entertainment;

SecureALL, which sells security for seniors.