FemTech is not just about periods and pregnancy, it’s about data sovereignty, community health, and economic power. The term encompasses software, diagnostics, products, and services focused on women’s health, and is on the rise with a global market expected to surpass $103 billion by 2030, according to Deloitte. Funds like 100KM Ventures are continuing to invest in the future of work and health, knowing that game changing FemTech entrepreneurs like Arion Long, CEO of Femly, the world’s first smart touchless pad and tampon vending machine are poised to gain a fair share of this market.
The Breakdown You Need To Know:
During Women’s Health month it’s important to highlight that Black women face some of the worst health outcomes in the U.S., with KFF finding they have the highest maternal mortality rates to disproportionate misdiagnosis in reproductive issues like fibroids and endometriosis. FemTech has the power to bridge these gaps through culturally informed tech, but only if those most affected have a seat at the innovation table. This creates an urgent need for more relevant solutions, and becomes a ripe investment opportunity for those who understand these nuanced markets.
FemTech startups like Femly, with its game-changing innovation that is increasing period care access in restrooms across the nation, and is backed by Pharrell Williams’ Black Ambition, Beyoncé’s BeyGOOD Foundation, and Google (GOOG -7.51%), is showing what’s possible. Despite funding challenges, Long’s company continues growing because it meets a specific, underserved women’s healthcare need.
“We wanted to think about what innovation looked like and how we could merge social impact with hardware to create a smart feminine hygiene device. Very quickly we found out that we needed everything from engineers and access to capital, that our early traction with our pre-sales helped us secure venture funding” said Long to CultureBanx.
Diverse leadership in FemTech leads to products that actually serve the full spectrum of women’s health needs, from fertility tracking and tele-gynecology to menopause support and period poverty solutions. Even as women’s health innovation gains traction, the capital flowing into it remains uneven. Not to mention that FemTech investment represents just 2% of the health tech sector. This gap exists even though women spend twice as much on healthcare as men.
Reshaping FemTech Investing:
Venture capital funds have long ignored this market based on the outdated assumption that women’s health is “niche.” However, with half the global population as the target demographic, and demand for tech-enabled personalized care skyrocketing, investors like 100KM Ventures Managing Partner, Shalanda Armstrong, who see the bigger picture are poised for major returns.
“When we think about our two verticals at 100KM, we see this as a huge market opportunity because we’re thinking about how the next generation is really investing their time, money and social capital,” said Armstrong.
When you consider that women’s readiness to adopt digital solutions boosts investor confidence, 100KM is ahead of the curve. Grand View Research reports women are 75% more likely to use digital health tools than men. This behavior difference creates a strong user base for FemTech products and services like Femly.
FemTech’s Global Growth:
The U.S. FemTech market dominated the sector in 2023 through innovative product launches and increased healthcare investments. While North American FemTech investment dropped by nearly two-thirds from 2021 to 2023, Dealroom.co found that the EMEA region demonstrated greater stability with only a 50% decline. This geographical variation presents opportunities for investors interested in this expanding global sector.
“Until recently there’s been an extraordinary blind spot in the world around female healthcare.” said Ida Tin, Co-founder and CEO of Clue; credited with coining the term ‘FemTech’ to TheConduit.
Recent changes in funding priorities have altered the FemTech map. Specifically, the White House Initiative on Women’s Health Research allocated $100 million in federal funding for women’s health in February 2024. Also, large investment firms like Lux Capital and Google Ventures now back FemTech companies.
Situational Awareness:
The future is female, or at least it will be filled with lots of FemTech. Therefore, it’s not enough to advocate for better women’s health outcomes, we need ownership, investment and leadership in the tools that make them possible. As more investors step into the space now, they don’t just help fund companies solving critical health disparities, they also shape a future where culturally competent care is standard, not scarce. Perhaps, the next health unicorn might not be a fitness tracker or supplement, it could be a tech-powered women’s health company.
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