Dental Sector Resilience in Times of Economic Uncertainty

One of the most distinguishing aspects of the dental industry is how it performs in economic downturns.

One of the most distinguishing aspects of the dental industry is how it performs in economic downturns. This is when the ability of most companies to generate a profit or even cover costs, is significantly impaired due to a massive decrease in demand.


Industry experts with extensive investments maintain that the dental industry is recession-resilient, making their case by providing strong anecdotal evidence from past recessions. The data supports this claim: Adults’ propensity to seek dental care is only impacted when wealth decreases by greater than 50%. In fact, the data shows the utilization of dental insurance benefits (and thus dental revenues) actually increases substantially during a recession. This increase happens early on as people rush for service in anticipation of coverage disruption.


It’s always important to understand how investments might perform in different economic environments, but this topic is particularly relevant today as we experience considerable uncertainty due to the ongoing global pandemic. The initial findings on dental industry resilience are encouraging in adding early-stage dental companies to any investment portfolio. There are more factors that strengthen convictions to choose an oral health venture fund like the one Revere Partners.


The US Bureau of labor statistics reported that the demand for dental services will increase as the population ages and as more and more research links oral health to overall health. This will result in a 3 percent growth in employed dentists from 2019 to 2029.


What’s more, the Biden Administration aims to expand upon the Affordable Care Act to improve access to healthcare for those without insurance. This means more individuals walking through dental office doors—causing a patient upturn during an economic downturn.


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Vision
Our investment thesis

The dental sector remains ripe for disruption, though has not seen the influx of investment capital that many other industries, including similar healthcare industries, have seen in the recent past. Our research shows that an exceptional investment opportunity exists in the dental sector, particularly in early-stage companies. The dental industry consists of many large corporations, private practices, and start-ups with great ideas, but they are fragmented and disconnected. Revere seeks to bring those disparate pieces together — Connecting like-minded founders or compatible products and services with the investment dollars and industry leaders they require to grow their businesses. We identify and elevate high-growth product and service sectors within dentistry that can ultimately optimize outcomes for both providers and their patients, serving in all roles from lead investor to strategic investor to founder-friendly advisor— and are always looking for an opportunity to follow on in future rounds. 

Dental Sector Resilience in Times of Economic Uncertainty

One of the most distinguishing aspects of the dental industry is how it performs in economic downturns.
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One of the most distinguishing aspects of the dental industry is how it performs in economic downturns. This is when the ability of most companies to generate a profit or even cover costs, is significantly impaired due to a massive decrease in demand.


Industry experts with extensive investments maintain that the dental industry is recession-resilient, making their case by providing strong anecdotal evidence from past recessions. The data supports this claim: Adults’ propensity to seek dental care is only impacted when wealth decreases by greater than 50%. In fact, the data shows the utilization of dental insurance benefits (and thus dental revenues) actually increases substantially during a recession. This increase happens early on as people rush for service in anticipation of coverage disruption.


It’s always important to understand how investments might perform in different economic environments, but this topic is particularly relevant today as we experience considerable uncertainty due to the ongoing global pandemic. The initial findings on dental industry resilience are encouraging in adding early-stage dental companies to any investment portfolio. There are more factors that strengthen convictions to choose an oral health venture fund like the one Revere Partners.


The US Bureau of labor statistics reported that the demand for dental services will increase as the population ages and as more and more research links oral health to overall health. This will result in a 3 percent growth in employed dentists from 2019 to 2029.


What’s more, the Biden Administration aims to expand upon the Affordable Care Act to improve access to healthcare for those without insurance. This means more individuals walking through dental office doors—causing a patient upturn during an economic downturn.


David Arena
Chief Financial Officer
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