For Immediate Release
Contact: Karen Magarelli
August 24 – The answer to this question plus a look at the state of the industry is answered in Femtech Collective’s 2021 state-of-the-industry report.
According to Frost & Sullivan, a cumulative $2 billion has been invested in the women’s health space, but that represents less than 3% of the total digital health investments for 2013– 2020. (Source: Frost & Sullivan analysis, Rock Health). Approximately 65%, directly goes to companies addressing fertility, pregnancy and motherhood—areas that have somehow managed to collectively represent femtech as an industry.
According to Krishna Shah & Eva Epker, in 2020, funding for femtech startups rose 105% in the United States, reaching $418 million of capital in 22 companies: almost double the number of companies rewarded equity in 2019. Globally, the femtech market is slated to reach a valuation of $48 billion by 2025, representing a 16.3% 5-year CAGR from 2019-2025 - almost tripling 2018’s $17 billion market size for femtech - and indicates continued and explosive growth in a sector with ample opportunity. Despite the high growth of this market, investments in femtech are still lagging. Femtech deals composed only 3% of all VC deals in the past ten years. In the past year alone - 2020 - femtech companies accounted for only 1.8% of total digital health investments: a trivial amount in the landscape of corporate investing.
This dichotomy between need and funds is fueled by several factors, including the current venture capital environment which remains mostly male. Venture capital (VC) firms can be an asset to startups to help them gain capital and traction, but the pitch process to venture capitalists shows the persistent gender bias that affects female entrepreneurs' fundraising prospects - and female entrepreneurs are more likely than men to start a female health company in the first place. While venture capital firms with at least one female investing partner are 2x more likely to fund female founders across the board and 3x more likely to fund companies with female CEOs than VC firms with all-male partners are, only 12% of decision-makers in US venture capital firms are women: a disadvantage that trickles down to the female entrepreneurs and the female health companies they’ve founded.
In addition to concrete investments, an increase in research, education, and awareness can encourage women, the consumers of these products, to take proactive steps to manage their health. Society as a whole, though, must also support these initiatives and help normalize the conversation around female health, by - among others - listening to women, dismissing the idea that female health is niche, and removing stigmas long-associated with prevalent female-specific conditions such as PMS, menopause, and sexual wellness.
For Immediate Release
Contact: Karen Magarelli
July 22 - Despite FemTech’s proven impact and market potential, the industry is underfunded, accounting for only a small percentage of aggregated capital that flows into healthcare.
Join FemTech Collective, Johnson & Johnson Innovation, Next Chapter Raise, Halogen, Avestria Ventures and many more for a virtual event on July 25 – 29 to discuss the funding gap for women’s health technology and what can be done about it.
Megan Capriccio, Co-Founder of FemTech Collective says, “We are so thrilled to have Johnson & Johnson Innovation join us for this event. Together, with our outstanding partners, we are making improvements in funding, but have a long way to go. This event is one more step on that journey. I invite you to attend and be part of the solution.”
Current State of Fundraising :
• FemTech funding accounts for 1.4% aggregated capital that flows into healthcare
• Women spend an estimated $500 billion on medical expenses annually— while a mere 4% of healthcare R&D is targeted specifically at female health issues
• An estimated 69% of FemTech startups have at least one female co-founder, in 2020, mixed-gender founding teams saw approximately 11.4 percent of VC capital invested compared to only 2.7 percent invested in solely female-lead teams
• 4 percent of CEOs and 21 percent of board members at Fortune 500 health care companies are women
• Women make up less than 5% of venture capitalists
• A large number of healthcare venture capitalists are yet to invest in FemTech
“The Johnson & Johnson Family of Companies is committed to diversity, equity and inclusion and is proud to be playing an active role in pursuing gender equality in Asia Pacific and around the world,” says Sharon Chan, Head of JLABS @ Shanghai. “We are delighted to bring together female leaders from Johnson & Johnson Innovation – JJDC, Inc. and Johnson & Johnson Innovation – JLABS resident companies to share the challenges and opportunities for female-led companies in their efforts to help deliver the next generation of healthcare potential solutions.”
Nicole Denholder of Next Chapter Raise says, “We are thrilled to be participating in this event. At Next Chapter Raise, we are proud to be involved in showcasing how fundraising awareness and access to the right investor communities can make a difference to those entrepreneurs driving the FemTech sector. This is aligned with our goals at Next Chapter Raise where female entrepreneurs come to understand and seek capital for their businesses. We support female founders in understanding different types of funding available to them, where to find it and how to approach that funding so that we can accelerate more female-led companies making an impact.”
To learn more about the current state of femtech, challenges to innovation, and opportunities for the future, download your copy of the 2021 Femtech Market Report, Now!