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Women Investing in Women's Health: The Rise of Femtech Companies and Investors in Celebration of Women's History Month

Just a few years ago, investment in women’s health was sparse. Global funding for the femtech sector had barely reached $100 million and there continued to be a glaring lack of research into critical areas such as female heart disease and gynecological disorders. That is finally changing, driven in large part by female funders who have identified the value in the sector and have started putting their money to work.

The Femtech Market Is Exploding

Historically, the female market was considered a niche market. Despite the fact that women make up half the population and manage the majority of household income, few companies marketed products directly to women. Some have explained this market inefficiency as the result of male investors struggling to understanding the value proposition.

But that hole in the market is now rapidly being filled. “Femtech,” a term coined in 2016 by Ida Tin, the founder of period- and fertility-tracking app Clue, refers to technologies and products that are designed for women’s health. This includes businesses focused on period care, pregnancy, childbirth, aging, menopause, fertility management and sexual health. According to Frost & Sullivan, femtech investments in 2018 totaled more than $400 million and are expected to increase to $50 billion by 2025.

This estimation is driven part by the broad range of products that are just now coming to market. For example, Maven, a digital health platform for women, raised $2 million in September 2018 to expand into breast-milk delivery. Other women’s health startups that have recently been funded include fertility solutions (Prelude Fertility, Rinovum, Celmatix, Progyny, Univfy, Conceivable, Nora), period and fertility tracking mobile apps (Flo, Clue, Glow, Natural Cycles, Maya, Ovia), period care goods (Lola, Lunapads, Thinx, Flex, Kasha, Cora, PMS Bites), products to support women’s sexual wellness (Nuelle, Sustain), and pregnancy and nursing care offerings (Bloomlife, Naya, Moxxily, Lucina, and Lia).

And Women Are Funding It

Much of the investment in femtech has been driven by another expanding market: female fund managers. Some funds are dedicated exclusively to funding women's health enterprises. Astarte Ventures invests in companies centered on the health and wellbeing of women and children. Portfolia, a venture platform financed almost exclusively by female investors, announced a new fund in 2018 that would focus exclusively on femtech.

Some women who have launched more traditional funds, where investing in startups may be outside their investment directive, are also finding ways to leverage diverse investment strategies. Private equity fund Turning Rock Partners and hedge fund Impactive Capital are reviewing investments through the lens of ESG (Environmental, Social and Governance investing), which champions diverse governing teams and strategies. Female funders are also expanding beyond the traditional fund structure. The First Women’s Bank of Chicago will be launched in large part to support women through traditional loans. We should not, however, understate the work that is still ahead. Last year women-owned private equity and hedge funds managed less than 4% of industry AUM, and less than 3% of venture capital investments went to female founders. Let’s hope these numbers have changed when we update this alert in 2020.

Continued investment in women-focused products by venture capital and traditional investors optimistically will lead not only to innovation in women’s health, but also to improvements in female representation on investor boards and C-suites, and may help close the gap in science and technology positions for female clinical researchers and computer engineers. Significantly, this kind of investment can also increase access to care and job opportunities for women in rural areas and developing countries—truly making women investing in women a cause for celebration.


This article is provided as a general informational service and it should not be construed as imparting legal advice on any specific matter.

Jessie M. Gabriel is a partner in BakerHostetler’s New York office and co-leader of the firm’s Investment Funds team. She counsels her clients, which include private investment funds, public issuers, boards of directors and C-level executives, on investment and governance disputes.

Tara Ravi is an associate in BakerHostetler’s Atlanta office where she serves as lead counsel on healthcare transactional and regulatory matters, with special emphasis on private equity, for-profit healthcare and healthcare finance transactions. Tara additionally provides day-to-day regulatory counseling to portfolio companies and manages compliance through multi-state growth.

BakerHostetler, recognized as one of the top firms for client service, is a leading national law firm that helps clients around the world address their most complex and critical business and regulatory issues. With five core national practice groups — Business, Employment, Intellectual Property, Litigation and Tax – the firm has more than 970 lawyers located in 14 offices coast to coast. BakerHostetler is widely regarded as having one of the country’s top 10 tax practices, a nationally recognized litigation practice, an award-winning data privacy practice and an industry-leading business practice. The firm is also recognized internationally for its groundbreaking work recovering more than $13 billion in the Madoff Recovery Initiative, representing the SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC. For more information, please visit www.bakerlaw.com


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