Financing tech solutions to improve women’s healthcare
Growing interest of venture capitalists and angel investors can help solve the problem of insufficient funding of femtech – tech solutions focusing on women’s health, says agency FemTech Analytics in an annual report. Researchers at consultancy McKinsey say that “improved women’s healthcare overall—could help catalyze positive social changes across the healthcare ecosystem and beyond.”
When it comes to medical care innovation, male driven research, as well as society’s taboo approach versus women’s bodies, has led to centuries of neglect for women medical and wellbeing needs; painful examination methods, expensive medical process and uncomfortable accessories, not to mention that a recent study of 1.3 million patients by the University of Toronto in Canada revealed that women are 15% more liable to suffer a bad outcome, and 32% more likely to die when a man rather than a woman carries out the surgery.
Women entrepreneurs change the scene, but funding is lacking
The landscape shows signs of change with more women innovators, researchers and start-up founders , not to mention the realisation of the size of the market: depending on scope, estimates for femtech’s current market size range from $500 million to $1 billion. Forecasts suggest opportunities for double-digit revenue growth, the McKinsey study says.
The USA accounts for nearly 65% of investors in femtech-focused companies. More than $10 billion was invested in US-based companies in 2021, the Analytics report shows.
“On the digital health front, FemTech companies currently receive 3% of all digital health funding. In our scan of hundreds of femtech companies, we found concentration in maternal health patient support, consumer menstrual products, gynecological devices, and solutions in fertility. Funding reached $2.5 billion by early December 2021.”
Femtech filling market gaps with big potential
“In some cases, femtech companies are filling gaps not yet addressed by biopharma and device incumbents, such as in the area of maternal health. Yet this is clearly, and promisingly, only the beginning of what femtech can address”, the McKinsey report says.
Femtech is powered to a significant extent by female entrepreneurs—more than 70% of femtech companies the McKinsey researchers analyzed had at least one female founder, compared with a 20% norm for new companies.
The Analytics report shows that the USA is the leader in the femtech market accounting for nearly 51% of the total number of femtech companies. Europe is second at 25%, followed by Asia at 8% and MENA at 7%.
“One of the key issues is the challenge for female-led start-ups of raising capital. Given that most investors are men, the lack of understanding of female health care needs makes them reluctant to invest in female-related products”, Analytics says.
Female health a taboo issue
Among difficulties for the sector, the agency mentions that for a long time, women’s health has been a taboo subject. “The lack of openness around subjects such as sexual and menstrual health has an impact on women’s health and well-being. Femtech breaks this taboo through applications, devices, products, diagnostics, and services providing for the needs of women’s health.”
Researchers at McKinsey say that “improved women’s healthcare overall—could help catalyze positive social changes across the healthcare ecosystem and beyond.”
“Consider menopause, which frequently occurs when women are most likely to step into senior roles. Its effects can have an impact on the number of women in top positions and the quality of women’s experiences throughout organizations. Deploying technological and consumer-centric solutions to address menopause can serve as a model and an enabler for future female leaders”, the McKinsey report says.
The article presenting the McKinsey research is written by Emma Kemble, consultant at the company’s New Jersey office, Lucy Pérez, senior partner in the Boston office, Valentina Sartori, partner in the Zurich office, Gila Tolub, partner in the Tel Aviv office, and Alice Zheng at the Silicon Valley office.
“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”, they write.
“Femtech solutions are not only achieving commercial success; they are contributing to the conditions for continued innovation. Because women are not just consumers but the primary healthcare decision-makers for themselves and often for their families, better health outcomes for women can lead to better outcomes for society”.
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