A Sad But Lucrative Affair

Today's featured startup is helping people with the most delicate of matters: the death of a loved one.

Mar 05, 2025

Empathy is a "comprehensive and multifunctional system" designed to help people cope with the loss of loved ones.

As the company puts it, their service is a "blend of humanity and technology." In simple terms, it's an app that provides users with the support they need—either through the app itself or by connecting them with the startup's consultants.

The app automatically generates an action plan for the deceased's family members. During such difficult times, people often struggle to think clearly, and the process comes with its own complexities—making the app's assistance invaluable.

Empathy helps family members close the deceased's accounts on social media and financial platforms, as well as cancel subscriptions for services like cable TV, online publications, streaming platforms, and more.

The app also includes a catalog of meditations, breathing exercises, and soothing audio stories to help alleviate stress. Users can read expert articles for guidance on navigating their situation.

After a death, dealing with documentation is often another challenge—especially if the deceased owned property or other assets. In some cases, families may be entitled to government benefits or financial aid, but accessing them requires time and effort. Empathy's specialists handle these bureaucratic hurdles by contacting relevant agencies and preparing all necessary paperwork.

While the app is a useful tool, people in mourning often need human connection, not just automated prompts on a screen. That’s why every user is assigned a dedicated consultant who offers personal support and guidance during this difficult time.

92% of users report feeling better after using Empathy following a loved one's passing. Additionally, the service has saved bereaved families an average of $3,000.

Founded in 2020, Empathy first caught attention in early 2021 when it secured $13 million in its initial funding round. By the fall of that year, it raised another $30 million. Now, it has secured an additional $47 million.

What's the Gist?

Death is a difficult topic — but the market is large and, unfortunately, perpetual.

Approximately 60 million people die worldwide each year, and by 2100, that number is expected to double to 120 million annually.

The market size is determined by the number of people directly affected by a death. If each deceased person leaves behind an average of 2–3 close relatives or friends, the market currently includes 120–180 million people annually, growing to 240–360 million by 2100.

Focusing on a single country, such as the U.S., we see a noticeable rise in the number of annual deaths as well.

Initially, Empathy tried selling its service directly to consumers, but it has since pivoted to a B2B2C model. The startup now sells its services to insurance companies, employers, and financial advisors, who then provide access to Empathy for their employees and clients during times of loss.

Dealing with the administrative burden after a loved one’s death is essentially a full-time job. On average, families spend 12.5 months resolving all necessary matters, working about 20 hours per week on related tasks.

78% of people experience financial difficulties after losing a loved one. Yet, paradoxically, 98% of them do not become clients of financial or insurance companies—a missed opportunity for those industries.

Using this logic, Empathy managed to integrate its service into the offerings of insurance companies, gaining access to 28 million clients. The conversion rate from these users into paying customers for additional services was three times higher than through any other sales channel.

26% of U.S. employees experience the death of a loved one each year. Of these, 47% report a clear decline in work performance due to stress and time constraints.

40% of people consider changing jobs after losing a loved one—either due to financial strain or a desire for personal change. Even those who stay in their roles spend over an hour of their workday managing post-loss affairs and coping with grief.

By leveraging these insights, Empathy has reached 40+ million clients through corporate partnerships. This has saved companies $190,000 per 100 employees who use the service and reduced productivity losses by 25% among grieving employees.

With 33 million users and $90 million in funding, Empathy has achieved impressive results for a startup that is only four years old.

Key Takeaways

As mentioned earlier, the deathcare market is vast and permanent, attracting various startups.

Lantern operates similarly to Empathy but also helps individuals prepare their affairs in advance so their loved ones are not burdened when the time comes. It has raised $2.3 million in funding.
Trust & Will focuses solely on estate planning—helping people set up trusts, draft wills, and handle all legal documentation before and after death. Despite its niche approach, it has raised $48 million (some of which came after my initial coverage).
Eterneva, turns cremated remains into synthetic diamond jewelry. This unique concept has attracted $17.8 million in funding.

The common thread? The deathcare industry is a growing and evergreen market. Empathy’s B2B2C model and Trust & Will’s estate planning approach are both practical and, unfortunately, highly relevant business models that can be replicated.

Company info:

Empathy

Website: https://www.empathy.com/
Last funding round: $47 million, 12.03.2024
Total funds raised: $90M after 3 rounds