Seem poised to crack glass ceiling with greatest share of digital funding but
It’s been seven months since Roe vs. Wade was overturned, and the mud has barely begun to settle.
Politically, voters have expressed their overwhelming support for an individual’s proper to entry abortion. Grassroots campaigns proceed, and technology-wise, innovation within the wider ladies’s health sector is only gearing up.
But have issues improved in any respect for the sector? Or has the souring of sentiment throughout the political spectrum solely scared traders off? TechCrunch carried out a vibe test to see the place this sector stands, and located a prevailing sense of guarded optimism.
For Oriana Papin-Zoghbi, CEO and co-founder of early ovarian most cancers detection firm AOA, the sector has tons of potential to develop, however elevating capital stays a problem, as some traders nonetheless think of it as a “area of interest market.”
However, issues are altering slowly however certainly: “Women nonetheless comprise nearly all of traders who most deeply perceive our product, however we’re fortunately seeing a rise within the basic inhabitants who’re involved in investing,” Papin-Zoghbi instructed TechCrunch.
She closed a $7 million seed spherical final yr and is now elevating a Series A. “We nonetheless have a really lengthy solution to go in altering opinions concerning the significance of investing in ladies’s health. We will not be a distinct segment market as 50% of the inhabitants.”
Janna Meyrowitz Turner, the founding father of Synastry Capital, echoed related sentiments. She famous that girls’s health startups are trying beyond traditional venture capital for funding, turning to avenues reminiscent of household places of work, company enterprise capital, and crowdfunding. She’s additionally heard conversations about strategic mergers and joint ventures.
“I foresee capital to healthcare firms growing in 2023,” she instructed TechCrunch. “But I’m not as optimistic in relation to misogyny within the funding and medical fields shifting as rapidly as public sentiment has on issues like abortion and even health advantages of the feminine orgasm.”
The funding for girls’s healthcare firms doesn’t look all that dangerous, although. According to PitchBook, such startups raised round $1.16 billion in 2022, much less than the $1.41 billion they raised in 2021. The excellent news is that the $1.16 billion is far nearer to $1.41 billion than it’s to $496 million, which was the quantity ladies’s health firms raised in 2020, and $476.8 million, the quantity raised in 2019. This signifies that traders didn’t revert to pre-pandemic ranges and the sector continues to be trending upward.
In truth, ladies’s healthcare tech firms, often known as “femtech,” did rather a lot better in 2022 in relation to digital healthcare funding. Even although funding within the digital health sector fell to about $8.6 billion in 2022 from round $16 billion a yr earlier, femtech’s share rose considerably from earlier years — the sector’s share of digital health funding was 13.26% in 2022, in comparison with 8.75% in 2021, 7.6% in 2020, and 11.8% in 2019.
Data Visualization by Miranda Halpern, created with Flourish
If something, there seems to be elevated investor curiosity to proceed funding innovation on this sector, regardless of the financial and political headwinds standing in the best way.