Why Women's Health Solutions Are Needed but Overlooked by Investors

Last month, something extraordinary died. You may not have heard about it, which is part of the problem, but we indeed lost something that should still be here. I'm speaking of the closing of Zencape Health, a brand whose mission impacts millions of women globally. You can read the founder's statement here, but I want to discuss why this happened, why it's profoundly sad, and why this trend has to be defeated.

In recent years, healthcare has seen a surge in innovation, with startups transforming everything from diagnostics to digital health services. Yet, in this vibrant landscape, women's health remains one of the most overlooked sectors. Despite growing recognition of the need for improved healthcare tailored to women, the funding for these solutions lags far behind. In this post, we’ll explore why investors hesitate to fund women’s health solutions, the implications of this hesitation, and how we can bridge this gap for a healthier, more inclusive future.

The market for women’s health is massive, valued at over $30 billion globally and projected to grow significantly. In the U.S. alone, over half the population is female, and research shows that women are the primary healthcare decision-makers for their families, influencing 80% of all healthcare choices. Despite this potential, startups focused on women’s health receive only a tiny fraction of venture capital. Shockingly, less than 5% of healthcare venture funding went to women’s health solutions in recent years. This startling disconnect raises an important question: why are investors holding back when the need for women’s health solutions is so clear?

I always hated the joke during the early COVID era that ‘any founder with a pulse could raise venture capital’ because moving the finish line closer for some didn’t make the system any more inclusive — it was just another cut in an already deep wound. - Abi Sundaram Founder, Zencape Health

The Growing Need for Women's Health Solutions

While healthcare has made great strides, critical gaps in women’s health remain. Many common health issues, from heart disease to mental health conditions, affect women differently than men, requiring tailored approaches. However, many of these nuances are overlooked in traditional healthcare models, leading to suboptimal care and outcomes for women. Take conditions like endometriosis or polycystic ovarian syndrome (PCOS), which affect millions of women worldwide yet often go undiagnosed or are mismanaged due to limited research and resources.

New technologies and innovations are beginning to address these gaps. Digital health tools, like personalized tracking apps, provide insights into reproductive health, pregnancy, and menopause. Meanwhile, telemedicine allows women in rural or underserved areas to access specialists and mental health support without long travel times or prohibitive costs. These innovations could drastically improve women’s quality of life and overall healthcare costs by preventing serious complications and reducing emergency visits.

The potential impact of these solutions is clear. Imagine a future where a woman’s unique health needs are thoroughly understood, and she has access to tools to manage her health seamlessly. Investing in women’s health solutions is more than simply addressing health gaps—it’s about lifting entire families and communities by empowering women to take charge of their well-being.

The Investor Perspective: Why the Hesitation?

Despite the clear market potential, investors have been slow to back women’s health startups. This hesitation can be traced to a few key factors, including common misconceptions about the women’s health market, gender bias in venture capital, and a general lack of understanding of women’s health needs.

Misconceptions about the Market: Some investors view women’s health as a “niche” market, assuming its audience is too small to generate substantial returns. This couldn’t be further from the truth. Women comprise half the world’s population, and the demand for quality health solutions is universal. Far from being niche, the need for women-focused healthcare is vast and urgent.

Gender Bias in Venture Capital: A significant gender gap exists within the venture capital industry. Most decision-makers in VC firms are men, who may not fully understand or relate to the importance of women’s health issues. This bias can unintentionally shape investment decisions, with investors overlooking solutions they don’t personally identify with or fully understand.

Lack of Understanding of Women’s Health Issues: Many investors aren’t familiar with the unique health challenges women face, such as reproductive health concerns, hormonal disorders, or maternal healthcare needs. This knowledge gap means that investors may undervalue or misunderstand the potential impact of women’s health solutions.

To move forward, it’s essential to break down these misconceptions, bridge understanding gaps, and show investors the market potential within women’s health.

Success Stories vs. Missed Opportunities

There are inspiring stories of women’s health startups that have overcome these barriers and achieved success. Modern Fertility, for instance, developed an at-home hormone testing kit that allows women to understand their fertility levels without an expensive visit to the doctor. Their success attracted notable investors and eventually led to an acquisition by Ro , a major digital health company. Such stories demonstrate that women’s health startups can thrive and scale with the right approach and support.

However, for every success, there are promising ventures that struggle due to lack of funding. For example, Zencape Health. Zencape addressed a critical health issue for women: chronic pelvic health conditions. It aimed to shorten the time between symptom-to-diagnosis and to ensure women had access to the right treatment once diagnosed.

But here’s the simple truth: despite our progress, we ran out of time (and money) before we could crack the unit economics to meet venture-funded standards. - Abi

Now comes Lasa Health , a chance at redemption, perhaps. During a recent health tech challenge, I saved this company from the pass-pile because I believe it can scale sustainably. Lasa, like Zencape, addresses the diagnosis time for chronic pelvic pain, reducing it from years to weeks, improving the quality of life for millions of women worldwide. This is your second chance, VCs. Let's get it right.

These case studies reveal a stark reality: while the need for innovation in women’s health is significant, financial support remains inconsistent. This lack of funding leaves many potential breakthroughs unrealized, stalling progress and leaving women without vital health resources.

The Economic Argument for Investing in Women’s Health

When investors look at women’s health solely through the lens of profit, they may miss the more significant economic benefits these solutions can bring. Beyond immediate returns, investing in women’s health offers long-term benefits for society and the economy.

Market Growth Potential: Women’s health is a fast-growing sector, with more women prioritizing health and wellness and seeking specialized care. The market’s growth potential makes it an attractive sector for investors willing to think long-term. By 2027, the women’s health market is projected to exceed $50 billion globally, underscoring the scale of this opportunity.

Economic and Societal Benefits: Investing in women’s health has ripple effects across society. For example, reducing complications in pregnancy and childbirth lowers healthcare costs and improves child health outcomes. Supporting women’s mental health can lead to higher productivity in the workforce, as women represent nearly half of the global labor market. Studies show that healthier women contribute to stronger economies, as they are often primary caregivers, workers, and consumers.

Compared to other healthcare sectors, women’s health presents a unique value proposition. Investors have a chance to generate returns while making a significant impact on public health. By shifting their perspective, investors could unlock value while supporting innovations that empower women and improve lives.

The Greed Factor: Let's make lots of money

Instead of skipping over the business of healthcare, I'll lay it out here as plainly as possible. Women have a higher patient value than men. If investors want to make money sustainably, investing in women's health only makes good business sense. Women spend more on healthcare and live longer; how much money is left on the table by not investing in the segment? Let's move on.

Bridging the Gap: Solutions to Increase Investor Interest

Several steps can be taken to make the women’s health sector more appealing to investors and to address the bias that may currently exist.

1. Education and Awareness Programs for Investors: We can foster a more inclusive understanding of healthcare by creating programs that educate investors on the women’s health market and the unique challenges women face. These programs could help investors see the value in this space and recognize opportunities they may have previously overlooked.
2. Increasing Diversity in VC Firms: Encouraging more women to join venture capital firms and take on decision-making roles can help balance perspectives. Women investors may have firsthand experience or understanding of the issues women’s health startups aim to address, which could lead to a more favorable reception for these companies.
3. Government Initiatives and Policy Changes: Governments can play a role in incentivizing investment in women’s health by offering grants, tax incentives, or other forms of support to companies developing solutions for underserved health needs. Policies encouraging diversity and inclusivity in funding decisions could also help create a more balanced investment landscape.

True story: I once wrote an eBook to educate investors on the feasibility of women's health. I called it "If These (vaginal) Walls Could Talk." The downloads were minimal; go figure. - SMT

Bridging this gap requires both cultural and structural changes within the investment community. With these steps, investors can play a crucial role in transforming women’s health and fostering a more equitable healthcare system.

The Role of Founders: Pitching Women’s Health to Investors

For founders working in women’s health, navigating the biases and misconceptions of investors can be challenging. However, there are effective strategies to communicate the value of their solutions clearly.

Communicating Value and Potential: When pitching to investors, founders should focus on the market potential, long-term benefits, and societal impact of their solutions. They can strengthen their case by demonstrating demand with data on women’s health spending, market growth projections, and user testimonials.

Overcoming Biases in Pitch Meetings: Founders can proactively address investor biases by educating them on women's health disparities and why these issues matter. By framing their solution as a response to a tangible, large-scale need, founders can help investors see the value beyond individual experiences.

Founders' roles in educating and engaging investors are crucial. With persistence and a well-structured pitch, they can help shift perceptions and drive investment in women’s health.

A Call to Action: Write this down.

The gap between the need for women’s health solutions and the funding allocated is a troubling reality with profound implications. This disconnect isn’t just an oversight—it’s a barrier that holds back vital health innovations and stalls progress toward a healthier, more inclusive future.

For change to occur, investors need to recognize the potential of women’s health and act on it. This means overcoming biases, educating themselves about women's unique health needs, and rethinking what constitutes a “niche” market. By prioritizing women’s health, investors can drive impactful innovations that benefit not only women but society as a whole.

The future of healthcare lies in inclusivity, understanding, and a commitment to meeting the needs of every individual. It’s time to bridge the funding gap and create a world where women’s health is valued, funded, and celebrated. With a suitable investment, we can empower women, strengthen communities, and improve lives across the globe. Let’s make it happen.

Tell me what you think. What will it take for women's health to become a priority?