Here's to the rise of the well-funded FemTech unicorns
More than USD 2.5 billion - that's how much funding the world’s FemTech companies received in 2021. FemTech funding is surging, but this is just the beginning.
What is FemTech?
“FemTech” encompasses a range of tech-enabled, consumer-centric products and solutions - these span menstrual health, pelvic and sexual health, contraception, fertility, maternal health, and menopause, as well as a number of health conditions that affect women disproportionately or differently, such as osteoporosis or cardiovascular disease.
McKinsey analysis shows that there are plenty of white spaces in the start-up landscape, particularly in areas beyond fertility and maternal health.
“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,” says the report.
White space opportunity
According to the McKinsey analysis, FemTech companies could disrupt healthcare in a number of ways, and initial breakthroughs are already being achieved across a range of areas, including the following:
- Improving care delivery: Virtual clinics such as Tia, innovative brick-and-mortar clinics such as Kindbody, and direct-to-consumer prescription delivery services like those of The Pill Club, all enable women to access care in a more convenient, consumer-centric manner.
- Enabling self-care: Trackers and wearables offered by companies such as Bloomlife, and at-home diagnostics like those provided by Modern Fertility, are among the FemTech solutions that are helping women take greater charge of their health and health-related data.
- Improving diagnoses: Clinical diagnostics companies are pushing the scientific frontier to address unmet medical needs in areas such as endometriosis (DotLab) and preterm birth (Sera Prognostics).
- Addressing stigmatized areas: Companies are addressing what had been considered to be stigmatized topics head on, such as menstrual health (Thinx), sexual health (Rosy Wellness), pelvic care (Elvie), and menopause (Elektra Health).
- Delivering culturally sensitive and tailored care: Solutions tailored for subpopulations are emerging for Black women (such as Health in Her HUE), LGBTQ+ populations (FOLX Health), and women in low- and middle-income countries (Kasha).
So, how can companies capitalize on this white space? “Looking forward, early movers can stake out opportunities in prominent white spaces, including by leveraging technology to address women’s health issues beyond reproduction, and by helping to meet the needs of underserved populations such as low-income or minority communities.
“FemTech also presents significant partnership opportunities for legacy players in traditional sectors.”
Boosting female representation
Companies would also be wise to increase their female representation. “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,” says McKinsey.
“Increasing female representation among researchers, inventors, investors, and founders can create more consumer-centric products and solutions that recognize and target women’s specific healthcare needs.”
The report concludes by highlighting that as women’s healthcare becomes an increasing priority, FemTech could be set for even greater disruption ahead – and we look forward to witnessing it!
Read the report in full.