Becoming a parent brings drastic change in the household budget. There are big cuts in funding for nights out, trendy clothes and elaborate meals. And there are massive spending hikes on diapers, convenience foods and an endless list of gear, from strollers to cribs to car seats.

As such, new and expectant parents are a favored demographic among marketers. They’re particularly receptive to products aimed at saving themselves time while offering stimulation and safety for little ones.

Startup founders and their backers also have taken an interest, applying technology and business model innovation to the increasingly tech-intensive art of watching, feeding, entertaining and transporting tiny humans. Although baby and toddler tech doesn’t account for a large piece of the total startup funding pie, it’s been a relatively active area for seed investment and has produced some high-return exits.

Funding in the baby market

Over the past two years, startups with baby- and toddler-focused business models have raised more than $260 million in seed and venture funding, according to an analysis of Crunchbase data. They’re developing a host of products, including robotics-enabled baby swings, smart monitors that track vital signs and formula customized for the needs of ill and premature infants. (See our list of funded companies based or marketed in the U.S. here[1]).

Some startups have gone on to raise pretty large rounds. Among the largest funding recipients is Before Brands[2], which develops edibles designed to help provide immune system training for babies. Its products are founded on the principle that including potentially allergenic foods as a regular part of one’s diet can boost immunity. Before Brands closed a $35 million Series B round in March, bringing total funding to $48 million.

Another big funding recipient...

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