Investors Are Wagering on the Untouched $103 Billion Market of FemTech
FemTech: Transforming Women's Health Through Tech, Investment, and Innovation
FemTech isn't just about periods and pregnancy – it's revolutionizing data sovereignty, community health, and economic power for women worldwide. The sector, expected to surpass $103 billion by 2030, encompasses software, diagnostics, products, and services focused on women's health.
During Women's Health Month, addressing health disparities among Black women is crucial. Disproportionate misdiagnoses in reproductive issues like fibroids and endometriosis in the U.S. demand the development of culturally informed tech solutions. This creates a ripe investment opportunity for those understanding nuanced, underserved markets.
Leading the charge is Femly, a company backed by Pharrell Williams’ Black Ambition, Beyoncé’s BeyGOOD Foundation, and Google, developing a smart touchless pad and tampon vending machine. Despite funding challenges, Femly is thriving by meeting a distinct, underserved women's healthcare need.
"We decided to merge social impact with hardware to create a smart feminine hygiene device," says CEO Arion Long, as quoted in CultureBanx. Diverse leadership in FemTech results in products catering to the full spectrum of women's health, from fertility tracking, tele-gynecology, and menopause support to period poverty solutions. Despite women spending twice as much on healthcare as men, FemTech investment represents just 2% of the health tech sector.
Venture capital funds have traditionally overlooked the FemTech market, based on outdated niche assumptions. However, the next generation's shifting attitudes and priorities necessitate investors like 100KM Ventures, who grasp the market's potential for significant returns. "We're investing in the future of work and health, understanding that FemTech entrepreneurs can reap a sizeable share of this market," states 100KM Ventures Managing Partner, Shalanda Armstrong.
Investors are becoming increasingly interested in FemTech given women's higher adoption rates of digital solutions, which boosts their confidence significantly. According to Grand View Research, women are 75% more likely to use digital health tools than men. This behavior difference forms a strong user base for FemTech products and services like Femly.
The market is experiencing rapid expansion, with venture capital investing surging, primarily in North America and the EMEA region. The geographical variation presents opportunities for investors aiming to capitalize on this expanding global sector. "For far too long, the world has ignored female healthcare," says Ida Tin, Co-founder, and CEO of Clue, credited with coining the term "FemTech."
Recent changes in funding priorities have reshaped the FemTech landscape. In February 2024, the White House Initiative on Women's Health Research allocated $100 million for women's health research, and large investment firms like Lux Capital and Google Ventures now back FemTech companies.
The future of FemTech is bright, necessitating ownership, investment, and leadership in the tools that make better women's health outcomes possible. By investing in FemTech startups, we can reduce health disparities, and ensure culturally competent care becomes standard, not scarce. Perhaps, the next health unicorn won’t be a fitness tracker or supplement – it could be a tech-powered women's health company.
- Kori Hale, an investor at 100KM Ventures, explains their interest in the FemTech market, stating, "We're investing in the future of work and health, understanding that FemTech entrepreneurs can reap a sizeable share of this market."
- The cultural shift in attitudes and priorities towards women's health and wellness is leading to increased investment in FemTech, with women being 75% more likely to use digital health tools than men, according to Grand View Research.
- Shalanda Armstrong, Managing Partner at 100KM Ventures, emphasizes the potential for significant returns in the FemTech market, saying, "We're investing in the future of work and health, understanding that FemTech entrepreneurs can reap a sizeable share of this market."
