FemTech M&A: What’s driving FemTech’s growth?

Exec Summary:

Femtech is a term used to describe technology, products, and services that are designed to improve women's health and wellness. The term "femtech" is derived from "female technology," and it encompasses a wide range of areas, including reproductive health, fertility solutions, period care, pregnancy and nursing care, menopause management, sexual wellness, and general wellness.

Femtech products and services can range from wearable devices, mobile apps, and online platforms to diagnostic tools, medical devices, and pharmaceuticals. Femtech aims to address the unique needs and challenges that women face throughout their lives and to provide innovative solutions to improve their health outcomes.

What’s driving FemTech’s growth?

There are several factors driving the growth of femtech, which is the term used to describe technology-based products and services that are designed specifically for women's health and wellness needs. Some of the key drivers of the femtech industry's growth include:

1. Increased demand for women's health products and services: There is a growing demand among women for products and services that address their unique health needs, including reproductive health, menstrual health, and menopause.
2. Advances in technology: Advances in technology have made it easier to develop and deliver femtech products and services, such as mobile apps, wearables, and telemedicine platforms.
3. Greater awareness and destigmatization of women's health issues: There has been a growing effort to raise awareness of women's health issues and reduce the stigma associated with them, which has helped to create a more supportive environment for femtech companies.
4. Investment and support from the healthcare industry: The healthcare industry has recognized the potential of femtech and is investing in companies that are developing innovative products and services for women's health.
5. Shift in consumer behaviour: Consumers are becoming more proactive about managing their health and are increasingly turning to technology-based solutions to do so, which is driving the growth of the FemTech industry.

Overall, these factors have contributed to the significant growth of the femtech industry in recent years, and it is expected to continue to grow as women's health continues to be a priority for consumers and the healthcare industry alike.

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Who are FemTech's biggest investors?

Femtech has received significant investment from a range of investors, including venture capital firms, angel investors, and strategic partners. Some of the biggest investors in femtech include:

1. The Female Founders Fund: The Female Founders Fund is a venture capital firm that invests exclusively in female-led startups, including several femtech companies such as Modern Fertility and Elvie.
2. Forerunner Ventures: Forerunner Ventures is a venture capital firm that has invested in several femtech companies, including The Flex Company and Maven Clinic.
3. GV (formerly Google Ventures): GV is the venture capital arm of Alphabet Inc. (Google's parent company) and has invested in several femtech companies, including Nurx and Clue.
4. Lux Capital: Lux Capital is a venture capital firm that has invested in several femtech companies, including Kindbody and Celmatix.
5. NEA (New Enterprise Associates): NEA is a venture capital firm that has invested in several femtech companies, including Modern Fertility and Maven Clinic.
6. Obvious Ventures: Obvious Ventures is a venture capital firm that invests in companies that are working to solve the world's biggest challenges, including several femtech companies such as Kindbody and Niramai.

Overall, these investors and others have contributed to the significant growth of the femtech industry by providing funding and support to innovative femtech startups.

FemTech Case Studies

There have been several FemTech companies that have raised hundreds of millions of dollars, gone public via an IPO, merged or been acquired in recent years. Some of the most notable examples include:

1. Nurx: a telemedicine company that offers birth control, STI testing, and other health services to women. $300 million exit to Thirty Madison.
2. Progyny: a fertility benefits management company that offers fertility solutions to employers and individuals. $3.27 Billion current market cap.
3. Kindbody: a fertility and women's health company that offers fertility treatments, gynecological services, and family planning support. $1.8 Billion latest valuation.
4. Maven Clinic - a FemTech company that offers telemedicine and virtual care services for women's health, including reproductive health, maternity care, and pediatrics. $1.35 Billion latest valuation.
5. Natera - a genetic testing and diagnostics company that was founded in 2004, went public on July 1, 2015. $6.25 Billion current market cap.

Case Study 1: Nurx + Thirty Madison

Nurx is a FemTech company that offers telemedicine services and provides access to birth control, emergency contraception, HIV prevention, and other health services to women across the United States. The company was founded in 2015 and is headquartered in San Francisco, California.

Nurx uses a mobile app and a website to offer a convenient and confidential way for women to access healthcare services without having to visit a doctor's office. Patients can consult with healthcare providers through the app and receive a prescription for medication or diagnostic tests. The company also offers home delivery of medication and provides access to a network of partner labs for testing.

Thirty Madison is a digital healthcare company that provides a range of services focused on specific health conditions, including hair loss, migraines, and acid reflux. The company was founded in 2017 and is based in New York City.

In 2021, Thirty Madison acquired Nurx, another FemTech company that offers telemedicine services for birth control, emergency contraception, and other health services to women. The acquisition valued Nurx at approximately $300 million.

With the acquisition, Thirty Madison expanded its services to include women's health, and it plans to use Nurx's technology and expertise to improve the delivery of healthcare services for women. The combined company aims to offer a broader range of healthcare services through its digital platform, leveraging technology to provide a more convenient and personalized healthcare experience for patients.

Both Thirty Madison and Nurx have been recognized as innovative digital healthcare companies that are disrupting traditional healthcare delivery models. By combining their expertise and resources, they aim to become a leading player in the digital healthcare space, offering a range of services that address a wide range of health conditions and needs.

Case Study 2: Progyny

Progyny is a FemTech company that provides fertility benefits management services to employers and individuals. The company was founded in 2015 and is based in New York City.

Progyny's services include fertility treatment, egg freezing, and surrogacy, among others. The company uses a data-driven approach to provide personalized fertility solutions to its clients, leveraging its network of fertility clinics and providers to offer the most effective and efficient treatments.

In 2019, Progyny went public on the NASDAQ stock exchange, raising $93 million in its initial public offering (IPO). The company has continued to grow rapidly, with revenues increasing by over 70% year-over-year in 2020.

Progyny has been recognized as a leader in the growing field of fertility benefits management, and its services have been widely praised for their quality and effectiveness. The company has also been recognized for its commitment to diversity, equity, and inclusion, and has received several awards for its workplace culture and employee satisfaction.

Case Study 3: Kindbody

Kindbody is a femtech company that provides comprehensive fertility, gynecology, and family-building services. The company was founded in 2018 with the mission of making fertility and family planning services more accessible, affordable, and personalized for women and couples.

Kindbody offers a range of services, including fertility assessments, egg freezing, IVF, genetic testing, and LGBTQ+ family-building options. They also provide gynecology services such as annual exams, contraception, and treatment for common gynecological issues.

One of the unique aspects of Kindbody is their use of technology to make their services more convenient and accessible. They offer virtual consultations and appointments, as well as a mobile app that allows patients to track their fertility journey, receive personalized recommendations, and communicate with their care team.

Overall, Kindbody is a leading femtech company that is making a significant impact on women's health and family planning.

Kindbody raised $100M in capital from Perceptive Advisors, a leading life sciences investment firm, to support future company growth. The latest financing brings Kindbody’s total equity and debt funding to more than $290M, and its valuation to $1.8B, solidifying its position as the largest women-owned fertility company serving employers and consumers.

This financing allows the company to continue to execute on its vision of affordable and accessible fertility care, by adding new clinics in underserved U.S. markets and by investing in operations to further enhance its care model which is designed to deliver industry-leading clinical outcomes.

Source: https://femtechinsider.com/kindbody-100m-raise/

Case Study 4: Maven Clinic

Maven Clinic is a FemTech company that offers telemedicine and virtual care services for women's health, including reproductive health, maternity care, and pediatrics. The company was founded in 2014 and has since become a leader in the femtech industry.

Maven Clinic offers a range of services, including virtual appointments with OB-GYNs, midwives, lactation consultants, and mental health professionals. The company also offers a digital platform that provides educational resources and support for women during pregnancy and postpartum.

One of the unique aspects of Maven Clinic is their focus on providing personalized care for women. The company's telemedicine platform allows women to connect with healthcare providers in a convenient and confidential manner, which can be particularly beneficial for women who may face barriers to accessing in-person care, such as those who live in rural areas or have limited mobility.

In addition to providing telemedicine services, Maven Clinic also partners with employers to offer virtual care benefits to their employees. This has helped to increase access to healthcare for women in the workforce and has made it easier for working mothers to balance their personal and professional lives.

Overall, Maven Clinic is a leading femtech company that is making a significant impact on women's health and wellness by providing innovative telemedicine and virtual care services.

Case Study 5: Natera

Natera is a genetic testing and diagnostics company that was founded in 2004. The company is headquartered in San Carlos, California and has additional offices in several other locations across the United States, Europe, and Asia.

Natera's primary focus is on developing and commercializing genetic testing products and services that can be used in reproductive health, oncology, and organ transplantation. The company's flagship product is Panorama, a non-invasive prenatal test (NIPT) that can detect genetic abnormalities in a developing fetus by analyzing a sample of the mother's blood. The company also offers other reproductive health tests, such as CarrierMap, a carrier screening test, and Spectrum, a preimplantation genetic testing product.

In addition to its reproductive health offerings, Natera has also developed diagnostic tests for cancer and organ transplantation. For example, the company's Signatera test can be used to detect cancer recurrence by analyzing circulating tumor DNA (ctDNA) in a patient's blood. Natera's Prospera test, on the other hand, is a transplant rejection monitoring test that can help physicians identify early signs of organ rejection in transplant recipients.

Overall, Natera is a leading genetic testing and diagnostics company that is making a significant impact on healthcare by providing innovative and reliable testing products and services in several different areas, including reproductive health, oncology, and organ transplantation.

Future of FemTech

The future of femtech is exciting, and there are several trends that are likely to shape the industry in the coming years. Here are a few key trends to watch:

1. Personalisation: As femtech continues to evolve, we can expect to see a greater focus on personalized healthcare. With advances in technology such as artificial intelligence (AI) and machine learning, femtech companies can gather and analyze data to provide tailored solutions for individual women.
2. Telemedicine and virtual care: Telemedicine and virtual care have become increasingly popular in recent years, and this trend is likely to continue in the femtech industry. With virtual appointments and remote monitoring, women can access healthcare more easily and conveniently, regardless of their location.
3. Menopause care: As the population ages, menopause care is becoming an increasingly important area of focus for femtech companies. With new technologies and treatments emerging, femtech companies can play an important role in improving menopause-related symptoms and overall quality of life for women.
4. Fertility tracking and family planning: Fertility tracking and family planning apps and devices have been around for a while, but we can expect to see continued innovation in this area. With advances in technology, femtech companies can offer more accurate and personalized fertility tracking solutions, which can be particularly helpful for women who are trying to conceive.
5. Digital therapeutics: Digital therapeutics, or software-based treatments for medical conditions, are becoming increasingly popular in the healthcare industry. In femtech, we can expect to see more digital therapeutics emerge for conditions such as menstrual pain, menopause symptoms, and postpartum depression.

Overall, the future of femtech is bright, and we can expect to see continued innovation and growth in this exciting industry.

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Original Source - https://www.healthcare.digital/single-post/femtech-m-a-what-s-driving-femtech-s-growth

HealthTech M&A Newsletter from Nelson Advisors - Market Insights & Analysis for Founders & Investors. Subscribe today! https://lnkd.in/e5hTp_xb

HealthTech M&A Advisory by Founders for Founders, Owners & Investors. Buy Side, Sell Side, Growth and Strategy mandates - Email [email protected]

HealthTech Thought Leadership from Nelson Advisors - Industry Insights & Analysis for Founders, Owners & Investors. Visit https://www.healthcare.digital