The marketplace for female-focused health products(aka’femtech’ )is set for growth via division, per an analyst note from PitchBook which recognizes opportunities for entrepreneurs to target a growing number of health issues that particularly affect ladies or affect females in a specific method– expanding out from a conventional concentrate on reproductive health.
Femtech remains a “significantly underdeveloped” slice of healthtech, according to the analysis, which highlights the variation in between just how much females spend yearly on medical costs– estimated at ~$500BN– vs how little health care R&D is targeted particularly at females’s health issues (a simple 4%).
In 2015 the global market for female-focused health products created $820.6 M, per the note, and is approximated to reach a minimum of $3BN by the end of 2030. While it states femtech posted $592.1 M in VC investment in 2019, slightly down on 2018’s $620.3 M. However so far this year it’s racked up $376.2 M in VC across 57 offers– putting it on rate to match 2019’s funding levels.
Locations of development opportunity PitchBook sees for femtech outside its standard focus on reproductive health are: Endometriosis, an agonizing disorder of the womb lining impacting one in 10 ladies; what it calls “customized and female-oriented approaches to general health & & illness management”, with a particular focus on heart health, discomfort management, and diabetes and weight management within that; and the life-stage shift of the menopause.
“While we still see femtech as a specific niche industry, our company believe nonreligious motorists could assist propel new development opportunities in the space,” write analysts Kaia Colban and Andrew Akers. “These include the increasing representation of ladies in the venture-backed innovation neighborhood, increasing awareness and acceptance of females’s health problems, and the growing frequency of infectious diseases among ladies in some nations in Africa and Asia.
“In addition, while the majority of femtech items have typically focused on reproductive health, our company believe new approaches to women’s health research will assist open the door to brand-new services and products.”
Growth of the vertical is being driven by universal growth of the personalized medication market– which PitchBook notes is expected to reach $3.2 TR by 2025, signing up a CAGR of 10.6% over the projection period.
While the massive underrepresentation of women in the venture neighborhood goes a long way to describing the relative lack of attention investors have paid to products resolving females’s health– with the note acknowledging pitching to male financiers stays an obstacle for femtech start-ups– it recommends financiers have likewise been cool on the subcategory since of a fairly bad track record of “sizable” exits.
“Only six femtech exits were finished in 2019; however, this still represents a 64% boost in exit value compared to 2018,” it composes. “The largest exits over the last few years consist of Progyny’s $130M IPO and Procter & & Gamble’s acquisition of This is L. for $100M. Progyny’s stock has actually roughly doubled in the 8 months since it went public.”
PitchBook states it anticipates simply 14% of VC to approach female-founded startups this year– additional noting that just 17% of startups have at least one female creator. (For femtech startups the figure is considerably higher– yet still only 69% of those PitchBook tracks; NB, this does not include startups building products targeted at ladies where there isn’t a medical requirement, such as skincare & & appeal etc.)
“Nevertheless, we believe these barriers may be decreasing as male investors begin to recognize the femtech market opportunity and as the VC world becomes more gender-diverse,” it includes, noting that female-founded companies deliver over two times as much per dollar invested than their male-owned counterparts which it reckons could assist to turn more financiers’ heads.
Other essential market development chauffeurs the note points to are a conducive regulatory environment; a rise in preventative medication & & holistic health; and advancements in health innovation that have made tailored products more budget-friendly and available, such as AI and “cloud-based infomatics”.
On the M&A front, PitchBook notes this is most typical for femtech start-ups in the general health & & wellness classification. And while most remain single-product companies it states it expects a maturing femtech market to cause product diversification– “possibly driven by M&A”– noting recent examples of pregnancy-focused apps tapping into the menopause market, which it states recommends an expanding chance for fertility start-ups.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.