Femtech, an innovative sector focused on women’s health, is showing immense potential to transform healthcare. This groundbreaking field of technology-based products and services that specifically caters to women’s health and wellness, is driving innovation in a market long underserved, underfunded, and out of reach for many. It’s not a niche market either; it’s a market with nearly 4 billion women worldwide. Currently, there are 1,800 companies categorized under femtech and targeting health and wellness for women and girls. The femtech sector is forecast to represent a $1.186 trillion market by 2027, illustrating its vast potential.
THE PROBLEM: SYSTEMIC ISSUES IN WOMEN’S HEALTH DATE BACK DECADES
Despite its reach and its potential, the women’s health market remains largely underserved due to several systemic barriers. The hurdles women face in accessing healthcare are multifaceted, whether it’s due to financial constraints, lack of insurance, or societal stigma. These obstacles become more pronounced for women of color, who face exacerbated disparities in access to and quality of healthcare.
Obtaining approval from the Food and Drug Administration poses a significant challenge to the femtech industry, given the specific nature of their products. Additionally, the lack of applicable insurance billing codes nudges most femtech products towards a direct-to-consumer (DTC) model. The DTC model, however, caters predominantly to affluent consumers able to shoulder out-of-pocket costs, leaving lower-income women underserved. It also underscores the twofold challenge for femtech: ensuring inclusivity and health equity while also driving innovation.
Research gaps in women’s health have also contributed to the problem. What is funded is what is known and what gets recognized—it’s a cyclical problem. Historically dominated by males, the medical, scientific, and investment communities have traditionally neglected women’s health concerns. Conditions like migraines, headaches, endometriosis, and anxiety disorders, which predominantly affect women, receive significantly less funding relative to the impact they have on the U.S. population, as documented in a recent article in Nature.
Underinvestment in women’s health further compounds these issues. Women entrepreneurs consistently receive less funding than men, and the investment gap is just as wide when it comes to health issues. Male venture capitalists are often unaware or reluctant to discuss women’s health problems, limiting the potential for investment in femtech.
THE DISRUPTERS: WOMEN LEADERS, RESEARCHERS, AND ENTREPRENEURS
Driven by a growing cohort of female leaders, researchers, and entrepreneurs, the landscape is changing. The surge in female scientists and doctors is leading to more research focused on women’s health, spanning topics such as the vaginal biome, autoimmune diseases, fertility, menstruation, breast milk, pelvic health, and more.
Market research and data with a focus on femtech, such as those generated by FemHealth Insights, serve as a bridge between investors, healthcare executives, and entrepreneurs. Dr. Brittney Barretto, a driving force in the femtech movement, as well as leading market players like Maven and Tia, have paved the way for modern, women-centric healthcare.
A McKinsey study on femtech estimated its current market size range from $500 million to $1 billion, with potential for massive revenue growth. Company demographics from the study also show their potential: “more than 70% of FemTech companies . . . analyzed had at least one female founder, compared with a 20% norm for new companies.”
The McKinsey study further states that “across the value chain, a more inclusive, gender-aware healthcare system could help support more women to become inventors, investors, physicians, founders—and healthier human beings, solving for the health conditions of other human beings. Research has shown that when inventors set out to solve a health problem, male inventors are more likely to solve for a male-oriented condition; women-led teams solve for both.”
Numerous femtech companies are developing personalized care programs that incorporate a deep understanding of factors influencing specific women’s health issues. For instance, Rosy is an app dedicated to addressing sexual dysfunction; balance is a support tool for individuals navigating menopause; Elana (my company) provides a platform for pelvic care; and Juno Bio offers an at-home vaginal microbiome test—all solutions that demonstrate the transformative potential of the femtech industry.
THE FUTURE IS BRIGHT AND INVESTORS SHOULD PAY ATTENTION
The femtech industry is set to experience a significant evolution, fueled by its focus on conditions that uniquely impact women. Predominantly steered by female founders, the sector has demonstrated considerable growth, with over 112 exits since 1990 worth an impressive $27.6 billion. The average exit value in femtech surpasses the general tech sector. Pioneers such as Maven Clinic and Elvie have already achieved unicorn status, signaling the immense potential of femtech for investors and budding entrepreneurs alike.
The femtech sector is not just anticipated to flourish in the future, but to radically transform the global landscape of women’s health; I believe it’s a goldmine of opportunities. I predict early investors will likely reap substantial benefits from a rapidly growing femtech industry teeming with promising technologies. It’s also clear that the investment in femtech could lead to innovative solutions for women’s health challenges that have long been considered inconsequential or too difficult to solve. Entrepreneurs—especially those with a personal connection to women’s health issues—should realize how extraordinary this opportunity is to drive societal change.
As the femtech sector expands and redefines women’s health worldwide, I believe entrepreneurs and investors stand to make significant gains, both in societal impact and financial returns.
Kerstin Recker Alexandre is the cofounder of Elana Health, a platform enhancing women’s pelvic health through comprehensive management.