In an age of hyperconnectivity, Europe faces an unexpected crisis: loneliness. The EU Loneliness Survey 2022 reveals that 13% of Europeans feel lonely most or all the time, while 35% experience it regularly. Despite the digital revolution, authentic human connection seems to be unraveling—replaced by surface-level engagements that lack emotional resonance. In an age of hyperconnectivity, Europe faces an unexpected crisis: loneliness. The EU Loneliness Survey 2022 reveals that 13% of Europeans feel lonely most or all the time, while 35% experience it regularly. Despite the digital revolution, authentic human connection seems to be unraveling—replaced by surface-level engagements that lack emotional resonance. This paradox lies at the heart of Social Discovery Group (SDG)’s $20 million venture studio, SDG Lab Venture Studio. The studio is betting big on a controversial but potentially transformative concept: Virtual Intimacy — a technological attempt to restore emotional closeness in an increasingly isolated society. Social Discovery Group (SDG)’s $20 million venture studio SDG Lab Venture Studio SDG Lab Venture Studio Virtual Intimacy Virtual Intimacy Virtual Intimacy Understanding Loneliness: More Than Just Being Alone Loneliness is not simply a matter of physical solitude. It’s a mental and emotional state where individuals feel unseen, disconnected, and emotionally deprived — even in crowds. It’s a perceived disconnection, not merely the absence of company. perceived disconnection Health Consequences of Loneliness A 2015 meta-analysis by Holt-Lunstad found that: 2015 meta-analysis Social isolation increases mortality risk by 29%
Loneliness increases it by 26% Social isolation increases mortality risk by 29% 29% Loneliness increases it by 26% 26% These numbers are comparable to the health risks of smoking 15 cigarettes a day, as outlined in the 2023 U.S. Surgeon General’s guidelines. smoking 15 cigarettes a day 2023 U.S. Surgeon General’s guidelines 2023 U.S. Surgeon General’s guidelines 2023 U.S. Surgeon General’s guidelines Moreover, loneliness is linked to: Sleep disturbances
High cortisol levels
Hypertension
Heart disease Sleep disturbances Sleep disturbances High cortisol levels High cortisol levels Hypertension Hypertension Heart disease Heart disease It’s no longer just a social issue; it’s a public health crisis. It’s no longer just a social issue; it’s a public health crisis. public health crisis Tech Meets Emotional Need: SDG Lab’s $20 Million Response Enter SDG Lab, the corporate venture arm of Social Discovery Group, which backs early-stage startups that focus on: SDG Lab SDG Lab SDG Lab Social Discovery Group Social Discovery Group AI-powered communication
Virtual and extended reality
Social discovery platforms AI-powered communication AI-powered communication Virtual and extended reality Virtual and extended reality Social discovery platforms Social discovery platforms These startups are designed to build what SDG calls “virtual intimacy”: emotional connections that transcend physical interaction through digital mediums. virtual intimacy Alex Kudos, CEO of SDG Lab Venture Studio, puts it simply:
“Technology doesn’t just help us build relationships — it becomes part of them.” Alex Kudos, CEO of SDG Lab Venture Studio, puts it simply: Alex Kudos Alex Kudos Alex Kudos Alex Kudos , CEO of SDG Lab Venture Studio, puts it simply: , , “Technology doesn’t just help us build relationships — it becomes part of them.” “Technology doesn’t just help us build relationships — it becomes part of them.” This shift challenges traditional notions of closeness. Can digital interactions really replace the emotional depth of face-to-face contact? The Geography of Loneliness Not all regions are affected equally. According to EU data: Eastern and Southern Europe (e.g., Bulgaria, Romania, Greece) suffer higher loneliness rates
Northern and Western countries (e.g., Austria, the Netherlands) show lower levels Eastern and Southern Europe (e.g., Bulgaria, Romania, Greece) suffer higher loneliness rates Bulgaria, Romania, Greece higher loneliness rates Northern and Western countries (e.g., Austria, the Netherlands) show lower levels Austria, the Netherlands For example, Cyprus mirrors this southern trend. Kudos notes that older populations in Cyprus are particularly affected. SDG’s solution? Use technology to build connections tailored to older users. Products like DateMyAge show that virtual platforms can appeal to users beyond Gen Z — if designed inclusively. For example, Cyprus older populations build connections tailored to older users DateMyAge DateMyAge A New Era of Digital Connection Studies show that 57% of Gen Z believe online relationships are as meaningful as in-person ones. During the COVID-19 pandemic, virtual worlds offered emotional refuge: 57% of Gen Z online relationships are as meaningful COVID-19 pandemic AltspaceVR users reported lower loneliness
Events and interactions in VR felt more immersive than real life for some AltspaceVR users reported lower loneliness AltspaceVR lower loneliness Events and interactions in VR felt more immersive than real life for some more immersive However, this comes with a caveat: telepresence fatigue. Some users found screens emotionally exhausting, emphasizing the fragility of digital intimacy. telepresence fatigue fragility of digital intimacy Economic and Societal Costs Loneliness doesn’t just hurt individuals — it strains entire economies. Increased loneliness leads to: Rising healthcare costs
Workforce productivity loss
Greater pressure on social services Rising healthcare costs Rising healthcare costs Workforce productivity loss Workforce productivity loss Greater pressure on social services Greater pressure on social services In regions like Cyprus, where aging populations and shrinking community structures prevail, digital intimacy becomes not just an innovation — but a necessity. aging populations shrinking community structures digital intimacy Beyond Online Dating Apps: The SDG and SDG Labs Portfolios Social Discovery Group operates over 60 global brands, including: Social Discovery Group 60 global brands Dating.com
DateMyAge
DilMil (for South Asians)
Kiseki (for Japanese audiences) Dating.com Dating.com DateMyAge DateMyAge DilMil (for South Asians) DilMil Kiseki (for Japanese audiences) Kiseki This diversification reflects the global loneliness crisis -as people migrate and lose touch with their cultural roots. SDG’s platforms aim to rebuild those connections in new contexts. global loneliness crisis rebuild those connections With SDG Lab Investments , the approach shifts from quantity to quality: SDG Lab Investments Focuses on 5–10 projects/year
Offers operational and strategic support
Invests in startups building AI relationships, virtual influencers, and platforms for older demographics. Focuses on 5–10 projects/year 5–10 projects/year Offers operational and strategic support operational and strategic support Invests in startups building AI relationships, virtual influencers, and platforms for older demographics. AI relationships, virtual influencers older demographics. For entrepreneurs navigating the complex funding landscape, Alex Kudos, CEO of SDG Lab, offers crucial insights in the Founder`s Guide about choosing between traditional venture capital and venture studio models. Understanding these funding paths becomes essential when building the next generation of connection technologies. Alex Kudos Alex Kudos Founder`s Guide Founder`s Guide Key Concerns: Can Tech Really Cure Loneliness? Before we accept virtual intimacy as the cure for our loneliness, or shall I say, disconnection crisis, we need to confront some uncomfortable truths. The research paints a complicated picture, one that challenges a somewhat simplistic, surface narrative around technology engineering its way out of a crisis. The Accessibility Trap The most vulnerable -older, poorer, and less educated users -are also least likely to access digital tools. A 2024 study found that nursing home residents without tech access were more isolated than ever, underlining the danger of digital exclusion. older, poorer, and less educated users least likely to access digital tools A 2024 study A 2024 study 2024 study nursing home residents danger of digital exclusion Quality Over Quantity Tech helps maintain existing relationships better than it builds new ones. A 2022 meta-review found only moderate evidence that technology reduces loneliness, particularly for forming close new bonds. maintain builds 2022 meta-review 2022 meta-review 2022 meta-review moderate evidence forming close new bonds The Presence Paradox Even the best-designed platforms may fail to offer a true sense of emotional co-presence. According to the European Commission’s 2024 brief, sense of emotional co-presence European Commission’s 2024 brief “Technology is seen as both enhancing and suppressing connections.” “Technology is seen as both enhancing and suppressing connections.” This reflects the paradox of virtual presence: the appearance of intimacy without the psychological reality. paradox of virtual presence More about the Critical Questions ↘ More about the Critical Questions ↘ https://thefuturemedia.eu/the-loneliness-economy-how-social-discovery-groups-20m-bet-is-logging-us-into-a-new-kind-of-intimacy/?embedable=true https://thefuturemedia.eu/the-loneliness-economy-how-social-discovery-groups-20m-bet-is-logging-us-into-a-new-kind-of-intimacy/?embedable=true SDG Lab’s Response: Technology as an Extension, Not a Replacement SDG Lab confronts virtual intimacy criticisms directly, viewing ethical concerns as opportunities rather than roadblocks. Alex Kudos, CEO of SDG Lab Venture Studio, believes that exclusion is more about poor design than user capability. For example, 90% of DateMyAge users regularly engage in video dating, disproving the stereotype that older people aren’t tech-savvy. exclusion poor design 90% of DateMyAge users video dating “Our goal is not to generate maximum engagement, but to promote genuine connection.” — he explains. “Our goal is not to generate maximum engagement, but to promote genuine connection.” — he explains. “Our goal is not to generate maximum engagement, but to promote genuine connection.” — he explains. That includes resisting the urge to gamify relationships or promote constant stimulation. Perhaps most telling is Kudos’s reframing of the “bandage versus cure” debate. The real issue, he argues, may be that traditional relationships are already failing to meet modern emotional needs. “Despite the idea that romantic partnerships are the foundation of emotional well-being, many of us are struggling even within those close connections,” Alex says. “Despite the idea that romantic partnerships are the foundation of emotional well-being, many of us are struggling even within those close connections,” Alex says. “Despite the idea that romantic partnerships are the foundation of emotional well-being, many of us are struggling even within those close connections,” Alex says. Virtual intimacy, in his view, isn’t a replacement but an expansion: one that amplifies access to connection across geography, identity, and life stage. Virtual intimacy, in his view, isn’t a replacement but an expansion: one that amplifies access to connection across geography, identity, and life stage. Virtual intimacy Virtual intimacy These questions aren’t meant to dismiss Lab’s vision. The company may very well be the revolution that our society needs, even if we don’t fully understand it yet. **For Kudos and his team, AI companionship isn’t ‘less than’ human. This type of connection allows people to be more vulnerable, authentic, and introspective in a safe space.**And in our current climate, don’t we all deserve the safety to be ourselves, fully?✓ Conclusion: Rethinking What It Means to Be Together So, can virtual intimacy solve the loneliness epidemic? So, can virtual intimacy solve the loneliness epidemic? So, can virtual intimacy solve the loneliness epidemic? Maybe. Research shows promise -but also flags risks. The real challenge is ensuring these tools don’t redefine connection in a way that erodes emotional depth. Maybe. erodes emotional depth As Kudos sees it, virtual intimacy isn’t about escaping reality. It’s about creating new spaces for vulnerability, connection, and self-expression. In a world where loneliness is both a personal pain and a public crisis, perhaps the most radical act is simply helping people feel seen — wherever they are. Kudos escaping reality new spaces for vulnerability, connection, and self-expression helping people feel seen SDG Lab is Actively Seeking New Ventures! SDG LAB Venture Studio is actively seeking for founders and companies working on the future of human connection. If you’re working on AI, video tech, or social innovation — contact us! contact us contact us

This story contains new, firsthand information uncovered by the writer.

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