Startups Disrupting the Death Industry
While we often focus on extending lifespans, the reality is that death is inevitable. This has spurred innovation and investment in startups focused on death and end-of-life planning. A significant amount of funding is pouring into this area, particularly in eco-friendly burial options, digital estate planning tools, and streamlined funeral services.
This trend highlights a growing market driven by an aging population and the impending generational wealth transfer. Traditional industries must adapt to new demands, and startups are stepping in to fill the gaps.
Green Burial and Interment: Eco-Conscious Options
One area attracting considerable attention is eco-friendly burial. This includes alternatives to traditional cremation and burial that minimize environmental impact.
Parting Stone, based in Santa Fe, New Mexico, offers a unique service, transforming cremated remains into smooth stone-like objects. The company has raised over $4 million to date.
Better Place Forests, located in San Francisco, allows people to spread cremated ashes beneath memorial trees in protected forests. With nearly $80 million in funding, the company operates several dedicated forests, offering a natural and meaningful final resting place.
Amidst these more creative approaches, cremation has gained widespread acceptance in the United States, with roughly 61% of the deceased being cremated, compared to 35% who undergo burial, according to the National Funeral Directors Association. Projections indicate that by 2045, the cremation rate will reach 80%.
For those seeking alternatives to cremation or burial, Earth, a Seattle-based startup, has raised $10 million to convert bodies into nutrient-rich soil through a process it describes as “gently transform[ing] a body.” Families can choose to receive a portion of the resulting soil for scattering or planting, while the remainder is donated to conservation projects. Similarly, Return Home, another Washington state startup, employs a process called terramation, or human composting, and has raised $2 million to advocate for nationwide legalization.
Streamlining Funeral Planning and Estate Planning
Beyond eco-friendly options, startups are simplifying the often-difficult task of funeral planning.
After.com has raised over $20 million, including a $10 million Series A, for an online platform that handles cremation arrangements and other post-death tasks, providing an alternative to traditional funeral homes.
Another significant area of investment is in fintech and legal tech tools for estate planning. The convergence of an aging population and a massive wealth transfer is driving demand for services to organize finances and inheritance plans.
Wealth.com, based in Phoenix, raised $30 million in a recent Series A round, led by Google Ventures, to “modernize and simplify estate planning.” The AI-powered platform targets financial advisors, who use it to generate wills and estate documents.
Trust & Will from San Diego, offers a more do-it-yourself approach to estate planning, and has raised over $48 million. Customers pay a fee to use its software to create wills and trust-based estate plans.
The Future of the Death Industry
While the funeral industry is often slow to adopt change, even traditional entities are realizing the need to modernize. The National Funeral Directors Association, for instance, now hosts an annual innovation award program.
Startups have an edge by easing processes for tasks people would rather avoid but must face. The increasing investment in various aspects of death and end-of-life planning suggests a growing market for innovation and solutions that reflect changing cultural views and preferences.
