We’re looking at scalable models that are delivering evidence-based therapies and improved outcomes. We’re not looking at just the traditional behavioral-only models. We look at things in an ecosystem of behavioral biology and environment.

Being able to use those tools for precision medicine, novel therapeutics, and more precise biomarkers is critical to us.

Care services and infrastructure are critical as well, all the way from early intervention in childhood to workforce enablement into adulthood and inclusive employment.

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BZ: What are some unmet needs that you are seeing, and are entrepreneurs also seeing these unmet needs, and creating startups to address them?

CM: The unmet needs are pervasive throughout every stage of this. There’s not a precise understanding at a biological level or behavioral level of what’s happening. It’s also care and services. The wait times range from six to 18 months for diagnosis and care coordination. There are also unmet needs once the individual hits adulthood and faces the challenges of independent living, employment, residential options, financial independence.

Fragmented markets, lack of organized data, poor access, antiquated solutions — those are all the hallmarks of opportunity for entrepreneurs and venture capitalists. The entrepreneurs and talented operators that are entering the space to solve these problems are very sophisticated, and you’re seeing a lot more capital flow into it.

We’re backing entrepreneurs that are solving these structural inefficiencies, like the fragmented care, the lack of organized data.

BZ: AIF started deploying funds in 2021 before the fund closed in 2024. Why did you do that?

We didn’t want to delay the impact or the access or proving the thesis. That early deployment was critical for us because it signaled the confidence we had in the thesis and validated the market and the approach that we were taking to attract additional limited partners. Prior to us doing this, no one had ever done it. We were a new fund and team. And it was important to us to prove out that thesis, validate everything we were doing. Those early deals allowed us to do that.

BZ: Have you guys had any exits thus far?

CM: We’ve had two exits: Joshin [a tele-behavioral health provider] and Spectrum AI [data analytics]. Spectrum AI was sold to Central Reach, which is part of Roper, and Joshin was sold to Rethink, which is owned by K1. Those are the largest platforms servicing the space. They both demonstrated that innovation can not only drive impact and outcomes, but really strong commercial returns as well. I would expect more exits in the next six to 12 months.

BZ: Are you launching a new fund?

CM: We’re launching Fund 2 in the fall. We’re really building off of Fund 1’s momentum with the expanded global reach. The deeper domain focus will be broadening the top of the funnel, making sure we’re including all those co-occurring conditions, which not only serves our mandate and the population that we set out to serve, but it also allows us to increase the addressable market and de-risk a lot of these opportunities.

BZ: Between the first fund and now, what are some important takeaways you’ve learned about the sector?

CM: When we started, there was a preconception that Autism Impact Fund was a niche small market fund not going after market returns, and that couldn’t be further from the truth.

We understood at the time that autism was poorly defined and was a really large market, and the co-occurring conditions made this a trillion-dollar-plus market, but that wasn’t necessarily understood. We spent the last five years building out that ecosystem, proving the thesis, proving the model.

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So in terms of do’s and don’ts, I would say don’t treat this as a niche charity space. It’s a global major economic and societal opportunity. It is one of the largest health challenges of our time.

BZ: Some critics say autism-focused venture funds are profiteering off the condition. What’s your response?

CM: If you look at any great innovation, any solutions in healthcare throughout the history of mankind, I think with one exception, they were all driven through for-profit models. And again, we’re unapologetic about that.

From my parent perspective, if somebody is able to find a solution that helps [people with autism] live tremendously better lives or improve quality of life, we don’t have any issue with those people reaping the rewards.

BZ: What advice would you give to investors interested in this space?

CM: Healthcare investing is hard. This space that we’ve spent the last six years now becoming expert on is incredibly complex and diverse. So, partner with domain experts. Make sure you’re partnered with people that really understand how the healthcare system at large works. Focus on scalable, evidence-based innovation that’s driving measurable and improved outcomes.

One final thing is, understand the importance of ethics. Because given the size and scale of the challenge, that attracts certain types of characters that you may not want to be doing business with.

The economic opportunity, the fragmentation of the market, it’s ripe for that type of shady character. Unfortunately, there are bad people out there.

This interview has been edited for length and clarity.

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This article This VC Fund Is Backing the Next Generation of Autism Breakthroughs – and Investors Are Taking Notice originally appeared on Benzinga.com