The femtech boom

By Lisa Desai and Jessica Jurkschat

The femtech industry, which focuses on improving women’s wellbeing via tech-enabled products and services, is set to be worth $50bn by 2025 (Frost & Sullivan, 2018). Femtech Innovation & Gender Equality Entrepreneur Estrella Jaramillo and Founder of Well Made Health, LLC Katie McMillan share their thoughts on the rise of startups disrupting women’s healthcare with tech – from fertility trackers to breast pumps.

What is femtech?

EJ: Femtech comprises devices, software and diagnostics, as well as tech-enabled products and services, that directly address women’s health issues. Think menstrual health, fertility, pregnancy and birth, parenting support, cancer prevention, sexual health education and pleasure.

It also includes health issues that, even though they affect both men and women, haven’t been sufficiently researched or analysed from the perspective of women, and how these health issues manifest differently.

‘Women are like: ‘We are 50% of the population! Our health affects ourselves, our families, and our communities and we will not be ignored.’ I love that.’

KM: I define femtech as apps, software, and connected devices that address a specific women’s healthcare need or goal. Femtech companies span from menstruation to menopause and everything in between! The majority are consumer-facing products, but there is also innovation happening in the medical device and treatment space as well.

How is the industry growing?

KM: Femtech is projected to be a $50bn industry by 2025. To put that in perspective, between 2013-17, femtech companies raised around $1.1bn.

I think there are a variety of reasons why the industry is growing. More women attend college and medical school then men now, which leads to a variety of secondary benefits like expendable income, as well as access to professional networks and investment capital.

Socially, I think a lot of subjects that were whispered in hushed tones – like menopause symptoms, incontinence and breastfeeding – are becoming destigmatised. Women are like: ‘We are 50% of the population! Our health affects ourselves, our families, and our communities, and we will not be ignored.’ I love that.

Who is investing in femtech?

EJ: Business consulting firm Frost & Sullivan’s 2018 report, paired with recent wins by leading companies and the awareness generated by the female entrepreneur community, has helped the space get on the radar of prominent investors. For example, Mahmee – an LA-based digital start-up tackling the maternal health crisis – announced a $3m round that included tennis star Serena Williams and entrepreneur Mark Cuban as investors. In 2019, the space surpassed $1bn in total funding since 2014.

How are women responding to the femtech boom?

KM: I’ve given a few presentations around the US on femtech over the last two years, and it’s amazing how many head nods I get from audience members and comments afterwards from both women and men. I’ve had people share really intimate stories of their women’s health issues and how they’re going to try a product I’ve mentioned or shared through my #femtechfriday series on Instagram, where I highlight different innovations.

I think no matter what stage of life, women or anyone who is able to give birth are looking for ways to best care for themselves, and advances in technology over the last 10 years have accelerated what is possible.

What are the top three femtech ventures we should be on the lookout for?

KM: I’m particularly interested in the fertility companies out there like Ava, OvuSense and Trak Fertility, because I believe that they can be used both alone by women as consumers, but also as part of their overall family planning discussions with their healthcare providers.

I’m also very excited about new breast pumps on the market – the Willow and Elvie. They’re exciting from both a discretion and convenience standpoint for mothers, but I think they will also encourage women to provide breast milk to their children for longer, leading to better child health outcomes.

I got an Elvie pump (pictured) last year when I had my second child and it was such a game changer in my return to work. I could sit in meetings and pump and no one knew! It was such a different experience from my first child three years before, when I had to block my calendar to find time to pump alone in my office.

‘The space is still in its infancy and there’s lots of room for innovation.’

What do you think the future of femtech will look like in five years?

EJ: The ecosystem is further consolidating. We need more funds investing in femtech, more accelerators, and more open doors to collaboration in big healthcare incumbents. The space is still in its infancy and there’s lots of room for innovation.

It remains to be seen how COVID-19 and the resulting economic impact will affect the evolution of the space down the line – with less money in the system and an increased aversion to risk, many industries will suffer. However, we have to remain positive that the growth trajectory will continue once we have more perspective on the situation.