The big investment opportunity…in autism? (2024)

The leading autism nonprofit and Google have teamed in an attempt to link private investors like venture capital, private equity and even hedge funds to inject innovative autism-related business development.

Thanks to increased awareness and diagnosis of autism, it's now known that one in every 88 American children is born with some level of the disorder. That's more than those affected by diabetes, AIDS, cancer, cerebral palsy, cystic fibrosis, muscular dystrophy or Down syndrome—combined.

But products and services for autism are woefully inadequate, according to advocates.

The big money is starting to take notice of investment opportunities that both could generate profits and help the autism fight.

(Read more: Pharma offering new hope for hepatitis C patients)

Private equity and venture capital firms TPG Biotech, Shore Capital Partners, Bay City Capital, Great Point Partners and Google Ventures, plus hedge fund Scopia Capital Management are among the investors slated to attend the 2014 Autism Investment Conference next week in San Francisco.

The event is organized by Autism Speaks in partnership with Google, which is offering a separate workshop for entrepreneurs doing autism-related work.

"While autism has always been part of our population, as our economy has shifted from agrarian work, where everyone could contribute, to urban, social workplaces, this group has moved backward due their social disability. As an investor, I see the opportunity to capitalize on the talents and availability of this group of workers," said Brian Jacobs, co-founder of venture capital firm Emergence Capital Partners.

One area where autistic individuals excel, Jacobs says, is software testing. He expects to back start-ups in the sector as an angel investor. Jacobs' initial interest comes from his son, who has Asperger's syndrome, a type of autism that allows relatively high function.

"I am attending the conference in hopes of learning about additional entrepreneurial endeavors in this area," Jacobs said.

(Read more: Hospital cuts out the middleman and sees success)

Business opportunities range from drug development to educational iPad applications to employment and residential services.

Finding products and services to benefit those with autism fits into a rapidly expanding segment of the health-care industry: human behavior.

"We've seen a very steady and dramatic increase in deal activity in all things behavioral health care," said Dexter Braff of The Braff Group, a boutique investment bank focused on health care that will be sending a representative to the conference.

Braff said that investors are especially interested in niches within the human behavior sector like autism because there's less competition.

"You've got an investment community looking at a fragmented area—areas that are very niche oriented that they can create a competitive advantage in," Braff said. "There are a lot of good access points and good investment dynamics."

(Read more: Private equitysalivates at bullish 'middle market')

Most of the investment firms attending the conference declined to comment or did not respond to requests. Google also did not respond to a request, but the company is part of the high-tech industry where certain types of autistic adults can thrive as engineers or programmers.

Autism Speaks is quick to point out investors are increasingly attracted to the opportunity for profit—not philanthropy—despite the double benefit.

"We see a real possibility to align the creation of value for investors with the creation of value for families in the autism space," said Robert Ring, chief science officer of Autism Speaks and former head of autism research at Pfizer. "There's a real opportunity landscape out there. It's just for us a matter of opening the eyes of the investment community to see that."

The big investment opportunity…in autism? (1)

watch now

VIDEO4:0604:06

6th Annual World Autism Awareness Day

One challenge for increasing investment in the space is size. Autism-related investments by private funds tend to be relatively small, usually in companies with less than $30 million in annual revenues. That limits larger private equity firms from getting involved.

Still, money is starting to flow.

Examples include Great Point's investment in Pacific Child & Family Associates, a provider of behavior analysis services to children with autism and other related disorders; Trimaran Capital Partners' investment in Educational Services of America, which offers day school services for children with special needs; and Coppermine Capital's bet on City Pro Group, a health-care services business coordinating care to young children with developmental delays and autism in the New York area.

—By CNBC's Lawrence Delevingne. Follow him on Twitter @ldelevingne.

The big investment opportunity…in autism? (2024)

FAQs

What is private equity in ABA? ›

PE ownership of ABA service providers always involves at least two organizations—the PE firm (i.e., the group of investors that buy the ABA provider) and the PE-owned company (i.e., the ABA provider that is bought by the PE firm). Each of these organizations has distinct but interconnected funding structures.

Is autism more common in males or females? ›

Autism Prevalence

In the U.S., about 4 in 100 boys and 1 in 100 girls have autism. Boys are nearly 4 times more likely to be diagnosed with autism than girls. Autism prevalence is lower among white children than other racial and ethnic groups: White – 2.4%

How common is Asperger's? ›

The incidence of AS is not well established, but experts in population studies conservatively estimate that two to six out of every 1,000 children have the disorder. Boys are three to four times more likely than girls to have AS. Asperger Syndrome affects about 1 in 200 people, more commonly in men than women.

When did autism become a diagnosis? ›

The DSM-III, published in 1980, established autism as its own separate diagnosis and described it as a “pervasive developmental disorder” distinct from schizophrenia.

What is the difference between investment and private equity? ›

Investment banking focuses on shorter-term transactions, earning fees without direct ownership. Private equity pools investor capital for company acquisition and management. Investment banks use their capital for trading, advisory, and underwriting while facilitating client transactions.

What are the three types of private equity funds? ›

There are three key types of private equity strategies: venture capital, growth equity, and buyouts.

What is the average IQ of a person with autism? ›

IQ Scores and Potential

While IQ tests are commonly used to measure intelligence, they are not always an accurate measure of an individual's cognitive abilities. According to a study published in the Journal of Autism and Developmental Disorders, the average IQ score for individuals with autism is around 85.

What country has the least amount of autism? ›

The ten countries with the lowest rates of autism, as reported by World Population review, include Taiwan, North Korea, Tunisia, Libya, Syria, Turkey, Morocco, Northern Mariana Islands, India, and Thailand. Among these countries, Taiwan has the lowest rate of autism, with a prevalence of 199 per 100,000 individuals.

What is the life expectancy of a person with autism? ›

The researchers found that men with Autism had an estimated life expectancy of 72 to 75 years and women with Autism had an estimated life expectancy of 70 to 77 years. These findings suggest that many individuals with Autism were dying prematurely, which impacted the overall life expectancy.

What is the new name for Asperger's syndrome? ›

The symptoms of Asperger's Syndrome are now included in a condition called Autism Spectrum Disorder (ASD). ASD is now the name used for a wide range of autism-like disorders. Some providers may still use the term Asperger's Syndrome, but others will say “ASD – without intellectual or language impairment."

Which parent carries Asperger's gene? ›

Although the exact cause of autism is still unknown, there is evidence to suggest that genetics play a significant role. Since autism is less prevalent in females, autism was always thought to be passed down from the mother. However, research suggests that autism genes are usually inherited from the father.

Why is Asperger's no longer recognized? ›

Frequently, children and adults who had been diagnosed with Asperger Syndrome do not show obvious signs in their cognitive development. Because of the lack of obvious signs, this led to misdiagnosis in the past.

Who is the most famous autistic actor? ›

1. Dan Aykroyd – Actor and Film Writer. Aykroyd is a comedic actor famous for his acting role and writing of the movie Ghostbusters released in 1984. His restricted interests have included ghosts and law enforcement.

What was autism called before autism? ›

Clinicians who encountered autism in the 1950s and 1960s called it by many names. Among them were Kanner's syndrome (named after Leo Kanner), early infantile autism, hyperkinetic disease, and Heller's disease (based on 1908 description by Austrian educator Theodor Heller), also known as dementia infantilis.

How is the autistic face different from the normal face? ›

For example, individuals with autism may have a flatter mid-face and a wider mouth compared to neurotypical individuals. They may also have a broader upper face, shorter philtrum (the groove between the nose and upper lip), and wider set eyes.

What is private equity in simple terms? ›

Private equity is ownership or interest in entities that aren't publicly listed or traded. A source of investment capital, private equity comes from firms that buy stakes in private companies or take control of public companies with plans to take them private and delist them from stock exchanges.

How do you explain private equity to a child? ›

What is private equity? Private equity firms—like KKR, Carlyle Group, Blackstone, or Bain Capital—are investment funds that typically buy companies using debt-financed acquisitions, restructure these companies to maximize their profit margins, and try to sell them to the highest bidder within three to five years.

What does it mean when someone is in private equity? ›

Private equity operates with investors and uses funds to invest in private companies or buy out public companies. By doing so, general partners can obtain control over management and other operational changes to increase profitability in hopes to later sell at a successful rate.

What is an example of a private behavior in ABA? ›

Behaviors that are only observable by the person experiencing them are often called private events. Private events include behaviors such as thoughts, physical sensations (e.g., heart racing, stiff muscles), and internal physiological changes (e.g., pain, temperature).

Top Articles
Three Types of Cash | Entrepreneurial Business School
Trading Futures for a Living
Spasa Parish
Rentals for rent in Maastricht
159R Bus Schedule Pdf
Sallisaw Bin Store
Black Adam Showtimes Near Maya Cinemas Delano
Espn Transfer Portal Basketball
Pollen Levels Richmond
11 Best Sites Like The Chive For Funny Pictures and Memes
Things to do in Wichita Falls on weekends 12-15 September
Craigslist Pets Huntsville Alabama
Paulette Goddard | American Actress, Modern Times, Charlie Chaplin
‘An affront to the memories of British sailors’: the lies that sank Hollywood’s sub thriller U-571
Tyreek Hill admits some regrets but calls for officer who restrained him to be fired | CNN
Haverhill, MA Obituaries | Driscoll Funeral Home and Cremation Service
Rogers Breece Obituaries
Ems Isd Skyward Family Access
Elektrische Arbeit W (Kilowattstunden kWh Strompreis Berechnen Berechnung)
Omni Id Portal Waconia
Kellifans.com
Banned in NYC: Airbnb One Year Later
Four-Legged Friday: Meet Tuscaloosa's Adoptable All-Stars Cub & Pickle
Model Center Jasmin
Ice Dodo Unblocked 76
Is Slatt Offensive
Labcorp Locations Near Me
Storm Prediction Center Convective Outlook
Experience the Convenience of Po Box 790010 St Louis Mo
Fungal Symbiote Terraria
modelo julia - PLAYBOARD
Abby's Caribbean Cafe
Joanna Gaines Reveals Who Bought the 'Fixer Upper' Lake House and Her Favorite Features of the Milestone Project
Tri-State Dog Racing Results
Trade Chart Dave Richard
Lincoln Financial Field Section 110
Free Stuff Craigslist Roanoke Va
Stellaris Resolution
Wi Dept Of Regulation & Licensing
Pick N Pull Near Me [Locator Map + Guide + FAQ]
Crystal Westbrooks Nipple
Ice Hockey Dboard
Über 60 Prozent Rabatt auf E-Bikes: Aldi reduziert sämtliche Pedelecs stark im Preis - nur noch für kurze Zeit
Wie blocke ich einen Bot aus Boardman/USA - sellerforum.de
Craigslist Pets Inland Empire
Infinity Pool Showtimes Near Maya Cinemas Bakersfield
Hooda Math—Games, Features, and Benefits — Mashup Math
Dermpathdiagnostics Com Pay Invoice
How To Use Price Chopper Points At Quiktrip
Maria Butina Bikini
Busted Newspaper Zapata Tx
Latest Posts
Article information

Author: Stevie Stamm

Last Updated:

Views: 5893

Rating: 5 / 5 (80 voted)

Reviews: 87% of readers found this page helpful

Author information

Name: Stevie Stamm

Birthday: 1996-06-22

Address: Apt. 419 4200 Sipes Estate, East Delmerview, WY 05617

Phone: +342332224300

Job: Future Advertising Analyst

Hobby: Leather crafting, Puzzles, Leather crafting, scrapbook, Urban exploration, Cabaret, Skateboarding

Introduction: My name is Stevie Stamm, I am a colorful, sparkling, splendid, vast, open, hilarious, tender person who loves writing and wants to share my knowledge and understanding with you.