Closing the Gender Gap: An Overview of FemTech and Its Potential

Over the last few decades, there has been a significant shift in the development of technology focusing on women's health. FemTech, or female technology, refers to a wide range of products and services aimed at improving women's health, wellness, and lifestyle. This newsletter will look at the history of FemTech as well as its future prospects, including the industry's current state, emerging trends, and potential impact on women's health and well-being.

So first of all, what is FemTech?

FemTech is a term used to describe technology specifically designed to address women's health needs. These technologies include mobile apps, wearables, and other digital devices that track menstrual cycles, pregnancy, fertility, and menopause. In recent years, FemTech has expanded to include products that focus on sexual wellness, breast health, pelvic health, chronic conditions, care navigation, and mental health.

FemTech is sparking debate, spurring innovation, and confronting problems head-on, ultimately assisting individuals, communities, entrepreneurs, healthcare providers, and researchers to dive head-first into complex issues in desperate need of creative solutions.

The term FemTech was first coined by Ida Tin, co-founder of a mobile fertility tracking app called?Clue in 2016. She saw male investors struggle to discuss female-focused products, and she sought to create a space for those conversations with the introduction of the term. Nevertheless, the history of Technology related females can be traced to a long time before.

FemTech History: From the Past to the Present

FemTech has a long history, dating back to the 1800s when women began using diaphragms as a method of contraception. The birth control pill, which revolutionized women's reproductive health, was not introduced until the 1960s. The pill's invention paved the way for the first FemTech company, CycleBeads, which offered a natural family planning method based on a woman's menstrual cycle in 2001.

FemTech development: The two waves so far

Startups in the first wave of women's solutions focused on areas that clearly differentiate women from men in terms of physiology and reached out to young people using modern technology. Initially, these were applications and devices related to menstrual health, fertility tracking, pregnancy, and breastfeeding that were designed to, ever so slightly, shift the perception that these issues were taboo. These apps have a simple D2C model and were largely observational technologies that reported observational analysis back to women in a way they had never experienced, granting women unprecedented access to information about their bodies.

The second wave, has birthed companies that engage in more conventional value proposals like treatment, diagnosis, and disease monitoring. However, due to the lack of awareness of female challenges and diseases like dysmenorrhea or endometriosis, they struggle to secure investment, mainly due to a lack of awareness of the conditions, lack of medical/scientific knowledge about the disease, and very few market comparables, as these companies are often market creators.

Women represent half of the planet’s population, yet tech companies catering to their specific health needs represent a minute share of the global technology market. According to PitchBook, a financial data and research company, the "femtech" industry — software and technology companies addressing women's biological needs — generated $820.6 million in global revenue and received $592 million in venture capital investment in 2019.

Why are women's health and issues generally overlooked - why do we need FemTech?

Research on health issues and disease has long focused on male anatomy. Of course, the biological male body differs from the biological female body in many ways, not just the reproductive system. According to the New England Journal of Medicine, women who have a heart attack are seven times more likely than men to be misdiagnosed and discharged because their symptoms differ from men's. By addressing the "gender health gap," FemTech companies help to increase women's representation in the medical field.

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The FemTech Industry's Current Situation

The FemTech industry is expected to be worth more than USD 1 Billion by 2027 considering the wide subsections that we can find nowadays according to a report from FemTech Focus. This shows several untapped opportunities that will eventually mature and thus creating new markets. The industry is diverse, with a wide range of companies offering various products and services. Period-tracking apps, breast pumps, pelvic floor trainers, and fertility-tracking devices are among the most popular FemTech products and services, they also happen to be the most mature subsections of the FemTech market.

Nonetheless, despite the industry's expansion, there are several challenges that must be addressed. One of the most significant challenges is the investment industry and the lack of diversity. According to a 2019 report from TechCrunch, women-led startups in the US received only 1.9% (USD 210 M) of venture capital funding showing us that there`s a lot of room for improvement. This lack of diversity may impede the development of products that truly reflect the health needs of women.

There's a lot of blank areas, and female health has always been underfunded and underserved and under researched, Ida Tin.

We already talked about the need for more investors to get into FemTech, nevertheless, we can find some serious players supporting and nurturing the industry (obviously they come in different “Flavors”:

• Y Combinator: 46 deals, including?BillionToOne,?Almond, and?Kindly
• SOSV: 29 deals, including?Bloomlife,?Free to Feed, and?Aima
• Techstars: 27 deals, including?Canopie,?Hormonius Flo, and?ohne
• 500 Global: 22 deals, including?BillionToOne,?Kiira, and?Plenna
• National Science Foundation: 21 deals, including?Elidah,?Bloomlife, and?Nanopath
• Alumni Ventures: 20 deals, including?Oula,?Willow, and?Busy Beauty

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Now, the section you`ve been waiting for, which are Companies to watch for in 2023;

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1. Hormona sets out to empower and educate women about constant changes in their hormone levels. It has a data-driven approach to hormone tracking — which starts with a proprietary at-home hormone test — and offers symptom tracking, daily health insights, period tracking and shopping lists tailored to your cycle. Think Apple Health but for your hormones. Hormona’s at-home hormone tests — which are lateral flow, urine-based tests for (initially) three separate hormones (FSH; progesterone; and estrogen) — will be available from Q1 2023, per Lofqvist, starting in the U.S., with a European launch to follow later.

The company?raised $1,500,000?/?Seed?from?Nascent Invest?and?2?other investors

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2. Aura - IVF is becoming more and more prevalent — according to the World Health Organisation (WHO), 15% of reproductive-age couples experience infertility, and IVF is a valuable option for same-sex couples who wish to conceive.

Sadly, fertility challenges and IVF cycles are frequent triggers for poor mental health, a factor often neglected by providers. Aura provides psychosocial care to those going through the process and also offers clinics a platform to accompany and support each patient through their treatment cycle.

The company received €700,000?/?Pre Seed?from?Ascension?and?Charlotte Street Capital

3.?????Contraline is a biotech startup that is focused on developing a non-surgical, long-acting male contraceptive called Echo-V. The company was founded in 2015 by Kevin Eisenfrats and Joseph Czarnik, who were graduate students at the University of Virginia at the time.

Echo-V is a reversible contraceptive that is designed to provide reliable, long-term protection against pregnancy with a single injection. The technology behind Echo-V involves the use of a polymer called Vasintex, which is injected into the vas deferens and forms a gel-like barrier that prevents sperm from passing through.

The company just raised $7.2 million in funding led by GV. The goal is to advance its in-human clinical trials of its injectable hydrogel designed to provide long-lasting, non-permanent contraception for men. The product uses a “hydrogel” designed to occlude sperm flow through the vas deferens for a predefined period of time, eventually degrading and thus offering a non-permanent contraceptive option.

4.?????Willow is a FemTech startup that offers a wearable breast pump designed to provide nursing mothers with greater freedom and flexibility. The company was founded in 2014 by Naomi Kelman, who was inspired to create a more discreet and comfortable breast pump after struggling with traditional models while breastfeeding her own children.

The Willow breast pump is a cordless, hands-free device that fits inside a woman's bra and can be worn discreetly under clothing. The pump is designed to be quiet and comfortable, with adjustable suction settings and a spill-proof, self-sealing bag that can hold up to four ounces of milk. The pump is also connected to a mobile app that allows women to track their milk output, pumping sessions, and other metrics. The company raised $144 M from investors like Pura Vida Investment, Portfolia, 10X capital

5. Hera Biotech was formed to apply advances in biotechnology to address?unmet needs in the field of women’s health?and specifically, in reproductive medicine.

Hera’s initial goal is to commercialize the?MetriDx?, a novel,?non-surgical?method for the definitive, early diagnosis and staging of endometriosis. Hera Biotech was founded in 2020 by Somer Baburek (CEO), Dr. Paul Castella (Executive Chairman), Dr. Bruce Nicholson (CSO), and Dr. Nameer Kirma (Chair of Scientific Advisory Board).

In 2022, The Company closed an oversubscribed $1.9 million seed financing round to support the company’s commercialization strategy with investors like Coyote Ventures, Althea ventures, and Stella Angels. The investments will be used for its category-defining non-surgical diagnostic test for endometriosis, MetriDx?. The funds will be used to complete an in-patient human clinical study, expand Hera’s IP portfolio, and support a regulatory pathway with the US FDA

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FemTech Future: Trends and Predictions

Despite the challenges, the FemTech industry is poised for significant growth in the coming years. There are several emerging trends and predictions for the future of FemTech, including:

1. Artificial Intelligence (AI) and Machine Learning: AI and machine learning are expected to play a significant role in the development of FemTech products. These technologies can be used to analyze large amounts of data, providing personalized insights into women's health.
2. Wearables and Smart Devices: Wearable technology and smart devices are becoming increasingly popular in the FemTech industry. These devices can track a range of health data, including heart rate, sleep, and physical activity, providing women with a more comprehensive view of their health and wellness.
3. Virtual Healthcare: With the COVID-19 pandemic, virtual healthcare has become more popular than ever before. In the future, virtual healthcare is expected to play a more significant role in the FemTech industry, with more companies offering telehealth services for women's health.
4. Personalization and Customization: As the FemTech industry continues to grow, companies

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If you want to learn more about FemTech you can listen to this great Podcast by Goldman Sachs

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Conclusion

?Although overall traction is encouraging, funding for female-led startups and women's health initiatives is still lagging behind other categories. More advocacy, female tech representation, and financial and emotional support will be required for it to become a reality. Despite these requirements, the future of femtech companies serving the health needs of millions of women appears promising.

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