Fertility As a Work Perk

Analysing the trends in fertility over the past decades and exploring opportunities in the Startup Space

Global fertility rates have declined by about 50% over the last 70 years. Estimates suggest that this number could drop even more in the upcoming years.

In this article, we will explore:

• Key Research Findings on Fertility
• What are the main causes of this trend?
• What are the opportunities in the startup space?

Let's start by analysing this graphic:

The total fertility rate of the world has dropped from around five children per woman in 1950, to 2.3 children per woman in 2023.

Why is this happening?

There are a number of studies trying to figure out the real reason behind this trend and according to Dr Max Roser, the founder of Our World in Data, says most of the literature boils down to three main factors:

1. Women's education - higher education in women is correlated with lower fertility.
2. Lower child mortality - For most of human history, around 1 in 2 newborns died before reaching the age of 15. By 1950, that figure had declined to around one-quarter globally. By 2020, it had fallen to 4%. So there's less pressure to have more kids.
3. Rising costs of bringing up children - and modern urban life doesn’t exactly scream “family-friendly.”

And let’s not forget the cultural shift. There’s less stigma around living child-free or delaying parenthood until your 30s or 40s. Which naturally means fewer kids per family.

Male Fertility

Although most of the reasons contributing to the decrease in number are related to societal factors, I also found it interesting to come across a study published in Human Reproduction Update in 2017 found that sperm counts among men in Western countries have declined by over 50% in the last 40 years, potentially contributing to fertility issues for couples.

Sapyen, one of Antler's portfolio companies, allows men to gain a deep understanding of their fertility and how to improve it, from home.

Sapyen’s comprehensive at-home male fertility test, priced at $149, covers nine fertility parameters conducted at NATA-accredited pathology labs nationwide. The test provides a personalized report within three days.

Within a week of starting the business, they had 5,000 people sign up to the waitlist which shows just how many men are looking for accessible healthcare solutions.

Ashwin Ramachandran, co-founder of Sapyen says:

“Because accessible reproductive care positively impacts people’s lives, we decided to build an at-home male fertility and reproductive health startup to make it easy for men to get tested and access reproductive care from anywhere at any time.”?        

Looking ahead

As we previously discussed, this decline in fertility can be seen as a win for personal choice and gender equality. But there’s a catch: if global fertility rates fall below replacement level (2.1 children per woman), the world will face a demographic squeeze. Countries like Japan, with a fertility rate of 1.4, are already feeling the pressure of an aging population.

So what can we do? Do we really have to choose between starting a family or focusing on our career?

Introducing: Fertility as the hottest employee's perk

Over 10 years ago, many tech giants such as Apple and Facebook started offering IVF and egg-freezing coverage to employees as part of their health benefits. Today, almost 1 in 5 large employers offer fertility benefits, up from just 5% in 2015.

Reports show that over 1 million women have left the workplace due to menopausal symptoms and a further 1 in 5 employees going through fertility treatment left their jobs due to insufficient support within the last 5 years alone. These benefits aim to help women climb the corporate ladder without facing a “career or kids” ultimatum.

And here is the thing. This benefit stopped being a 'nice to have’ and is becoming an essential to have - if you want to attract and retain top talent.

A recent HR Brew/Harris Poll found that, overall, 63% of respondents thought companies should offer fertility benefits to employees. That number was 73% for Gen Z and millennials.

When it comes to retaining talent, this data speaks for itself:

Garner said they found that 90% of people who get fertility benefits through Carrot said they are more likely to remain at their company because of their Carrot plan.

Are VCs interested in FemTech?

Absolutely. It's a growing trend and it isn't going anywhere.

Some of the companies that received capital in the space are:

1. Hertility Health - A UK-based startup offering personalized diagnostic testing for women’s reproductive health. In 2021, they raised $5.2 million in seed funding and a further ￡6M in a joint VC and crowdfunded round in 2023.
2. Ava - A Swiss FemTech company that developed a fertility tracking wearable. Ava has raised over $42 million in funding to date, with its Series B round closing at $30 million in 2018.
3. Carrot Fertility - A US-based startup offering fertility and reproductive health benefits to employers. It raised $75 million in its Series C round in 2021, bringing its total funding to over $115 million.
4. Modern Fertility - Acquired by Ro for $225 million in 2021, this US startup provides at-home fertility tests for women, empowering them to make informed reproductive choices.
5. Kindbody - Another US-based fertility startup that provides fertility services, including IVF, egg freezing, and wellness care, to individuals and companies. It has raised more than $154 million in VC funding, with a $62 million Series C round in 2021.

In Australia:

• Kin Fertility raised $3.9 million in a Series A funding round in 2022, focusing on reproductive healthcare and fertility treatments.
• Fertilis is another Australian fertility company specializing in technology to improve IVF success rates. It raised $2 million in seed funding in 2022.

Over to you now

What are your thoughts on egg freezing and IVF as employee perks? Is this the ultimate work-life balance, or just another corporate benefit that doesn’t address the root issue? Got any hot tips on startups in the fertility space?

Let me know in the comments!