Child care
A $136 billion child care market desperate for supply and ripe for reinvention.
$136B
Current
Market SIZE
$167.8B
POTENTIAL MARKET SIZE
WITH GOVERNMENT-SIDE GROWTH

A surge of post-pandemic government spending is going to fuel innovation in the private sector.
The child care market is unaffordable, fragmented, and broken. Federal and state governments are now stepping in to support families with their child care needs. This funding, leveraged with the right technology, can help spur the increase of child care solutions on multiple fronts—from helping families find care quickly and efficiently, to helping providers expand their operations. 
The demand for child care is palpable, and the market is ripe for new solutions in child care supply.

Before COVID-19, more than half of American families already lived in child care deserts (areas with an insufficient supply 
of licensed child care). The 2020 pandemic decimated the 
child care industry, forcing widespread closures and leaving families scrambling for solutions.


Entrepreneurs are already building exciting new models to support people to move into this meaningful, flexible profession and also help existing child care providers with their business and operational needs.

Here are just a few examples of new models in child care:
  • Lowering the barrier to become a child care provider and micro-entrepreneur
  • Connecting parents to child care providers through online marketplaces
  • Providing community-based platforms to create support systems for providers
  • Innovating on business models by bringing in employers as payers of care benefits

There has been a sea change in government policy around care and a wave of funding is coming that could boost the child care market.

Which ones might apply to your business?

Check the boxes to add them together.
$67.9b
TOTAL GOVERNMENT
OPPORTUNITY
  • CURRENT FUNDING:
  • $3.7 B
    Temporary Assistance for Needy Families (TANF): Funding for financially vulnerable families with cash assistance, child care subsidies, and work support during critical times
  • $9.7 B
    Child Care and Development Fund (CCDF): Funding to support quality child care access, child care assistance for families, skill building for teacher workforce, and support in quality for child care programs
  • $10.3 B
    Head Start: Funding to support low-income children for full-day/full-year child care aged 3 to 5 through a mix of private providers and public centers
  • $12.4 B
    State Funding for Pre-K Programs: Funding for pre-K and early education programs, a percentage of which flows into the private sector
  • POTENTIAL FUNDING:
  • $6.8 B
    Child Tax Credit (CTC): Funding for families to use for care (e.g. child care, parenting tech, child wellness solutions) -- up to $1,600 per family above the current $2,000 credit
  • $25 B
    American Jobs Plan: Funding to upgrade child care facilities, increase the child care supply in areas that need it most, and expand tax credits for employers to build child care facilities at places of work
  • CURRENT FUNDING:
  • Temporary Assistance for Needy Families (TANF): Funding for financially vulnerable families with cash assistance, child care subsidies, and work support during critical times
  • Child Care and Development Fund (CCDF): Funding to support quality child care access, child care assistance for families, skill building for teacher workforce, and support in quality for child care programs
  • Head Start: Funding to support low-income children for full-day/full-year child care aged 3 to 5 through a mix of private providers and public centers
  • State Funding for Pre-K Programs: Funding for pre-K and early education programs, a percentage of which flows into the private sector
  • POTENTIAL FUNDING:
  • Child Tax Credit (CTC): Funding for families to use for care (e.g. child care, parenting tech, child wellness solutions) -- up to $1,600 per family above the current $2,000 credit
  • American Jobs Plan: Funding to upgrade child care facilities, increase the child care supply in areas that need it most, and expand tax credits for employers to build child care facilities at places of work
$25B
$25B
$25B
$25B
$25B
$25B

There has been a sea change in government policy around care and a wave of funding is coming that could boost the child care market.

Which ones might apply to your business?

Check the boxes to add them together.

11% GROWTH

Average annual profit growth 2013 to 2019 of 
Bright Horizons, the largest provider of employer-
sponsored child care and back-up child care.

State-Startup 
2021 Partnership

The North Carolina Partnership for Children 
is using part of its $5M CARES Act allocation 
to give home-based child care providers in their state 
a subscription to Wonderschool, paving the way for how tech and government can work together.

The contemporary child care market isn’t just about “babysitting.” It encompasses a wide variety of services and supports that parents are willing to pay for, including...

Birth, fertility, and pregnancy

Parent coaching on demand, parenting communities & support networks

PARENTING TECH

Advice and support on demand, early childhood 
education platforms, care coordination technology