BusinessJul 5, 2026
Why the Connection Economy Could Be Wall Street's Next Investment Theme
Market Trends
Rhea Lobo
Discover
Loneliness used to be a feeling — now it's a market. Governments are funding efforts to reduce social isolation, while investors are backing the companies trying to solve it. The opportunity is showing up in some unexpected places.
Tackling the crisis: The US Senate is pushing to address loneliness with two new bills. One would allocate $62.5M annually for community programs serving older adults, while the other would establish a White House Office of Social Connection Policy. The growing focus on social isolation is also fueling a new connection economy, with startups building businesses around everything from friendship coaching to AI companions and private social clubs.
Pet ownership has become one of the clearest ways people cope with loneliness, a trend that could benefit companies like Chewy and Petco Health and Wellness. Fund managers have also highlighted streaming services and video games as potential loneliness-economy investments, a theme that could also support companies such as Netflix and Roblox. Dating and social platforms could likewise benefit if demand for digital connection continues to grow.
Connection's limits: Building a business around connection is easier said than done. Social club startup BuildIRL shut down after failing to make its model profitable, while Eventbrite never lived up to the expectations set at its IPO. AI companions remain an imperfect substitute for real relationships, leaving the strongest opportunities with companies that weave connection into products people already use.
