Femtech, the sector dedicated to women’s health technology, is poised for exponential growth. A CNBC report predicts the femtech market will reach $1.186 trillion by 2027. With half the global population being women, the demand for better healthcare solutions is undeniable. And yet, in 2023, only 3% of digital health funding went to women’s health startups (Rock Health). 

This isn’t just an economic oversight; it’s a failure of the investment ecosystem to recognise the immense potential of femtech.

So, what’s holding it back? 

The gender bias in venture capital: women’s health is not ‘niche’ 

A fundamental issue lies within the venture capital (VC) landscape worldwide. While gender diversity in investment remains a challenge across markets, the disparity is particularly evident in women’s health funding. According to the World Economic Forum, In Europe, only 1.8% of total VC funding went to startups founded solely by women in 2023. Comparatively, research from the British Business Bank concludes that for every £1 of VC investment in the UK, all female founded teams receive less than 1 penny. 

This lack of investment has a direct impact on femtech. Despite growing demand for innovative women’s health solutions, funding remains disproportionately low. Many femtech startups struggle to secure the capital needed to scale, leaving critical health needs underserved. Despite affecting one in ten women worldwide, endometriosis receives a fraction of the funding that other medical conditions do. The result? Many women struggle for years to receive a diagnosis, let alone effective treatment. 

Yet the potential is undeniable. Women’s health isn’t a niche, it’s an underserved market with massive economic and social value. Europe is already home to a growing number of successful femtech companies, from UK-based Elvie (breast pumps and pelvic floor trainers) to Germany’s Clue (period tracking). However, without greater investment, innovation in this space will continue to lag behind other sectors, leaving critical health needs unmet. 

The ‘uncomfortable’ factor in femtech 

Many business and investment circles still consider topics like menstruation, menopause, fertility, and sexual health ‘uncomfortable.’ According to research, many male investors admit they don’t feel confident evaluating femtech pitches, leading to a lack of investment in the space. This reluctance to engage with women’s health issues creates a cycle where innovation stalls due to a lack of capital, and the need for better solutions remains unmet. 

One striking example is menopause. An estimated 1 billion women will be postmenopausal by 2025, yet menopause research and treatments remain woefully underfunded. Many women are left navigating symptoms like severe brain fog, joint pain, and hot flashes with little medical support. 

By normalising conversations around women’s health, we can break down these taboos and encourage more investors to see the immense market potential. 

Women’s health research is decades behind 

The funding gap isn’t just in startups, it extends to research and development (R&D). Historically, women have been excluded from clinical trials, meaning most medical treatments have been designed around male physiology. The National Institutes of Health states that women are nearly twice as likely as men to suffer from adverse drug reactions due to this oversight. 

Meanwhile, according to McKinsey, only 4% of R&D funding is dedicated to female-specific conditions such as endometriosis, PCOS, and menopause. The result? Women’s health conditions remain under-researched, misdiagnosed, and poorly treated. 

Imagine where women’s healthcare could be today if funding had been equal all along. Investing in femtech isn’t about profit, it’s about addressing this systemic neglect. 

Proof that femtech investment works 

When femtech companies do receive funding, they thrive. Consider these success stories: 

• Elvie: a company revolutionising breastfeeding with its silent, wearable breast pump, is now stocked in major retailers worldwide. 

• Clue: a period-tracking app, has over 12 million users and continues to grow as women demand better cycle tracking and health insights. 

• Maven Clinic: a virtual clinic focused on women’s and family health, became the first femtech unicorn with a valuation surpassing $1 billion. 

These companies prove that the demand is there, what’s missing is the investment. 

What needs to change in femtech? 

To fully unlock femtech’s potential, we need a multi-faceted approach. We must dismantle the barriers holding back investment and growth at both the institutional and societal levels.

More female investors

Gender diversity in investment firms has proven to influence funding decisions. Firms with more women in leadership roles are more likely to invest in female-founded businesses, especially in sectors underrepresented in traditional VC portfolios. Increasing female representation in venture capital is crucial to ensure that women’s health solutions receive the recognition and funding they deserve. The presence of female investors can help to bring more focus on the overlooked femtech sector and shift perceptions of women’s health from a “niche” to a mainstream market. 

Better education for investors 

Many investors still don’t fully grasp the untapped financial potential of femtech. The need for education in this area is critical. Data-driven research and case studies can help illustrate that investing in women’s health isn’t merely an ethical choice, but a smart and profitable one. In fact, as the global female population grows, the demand for healthcare innovations that meet women’s unique needs also increases. Investors must understand that funding femtech isn’t just about empowering women; it’s also about tapping into a market forecasted to be worth over $1 trillion by 2027.

Increased R&D funding 

A significant gap in research and development for women’s health needs to be closed. To correct this imbalance, both public and private sectors must prioritise R&D funding for female-specific conditions, such as endometriosis, menstrual health, menopause, and reproductive health. By addressing this research gap, we can ensure that women’s health is treated with the same level of attention as men’s. 

Mainstream visibility 

We must view femtech as a fundamental part of healthcare innovation, not a niche industry. Media coverage, industry conferences, and policy discussions must amplify the importance of women’s health. 

By raising awareness and prioritising funding, we can ensure that innovations in women’s health receive the attention they deserve. The systemic changes needed to make this happen are not impossible, but they require concerted effort from all stakeholders involved. Investors, researchers, businesses, and policymakers must work together to bridge the funding gap and help create a thriving femtech ecosystem. 

Time for action 

The femtech market is ready for explosive growth. The demand is there, the innovation is happening, and the need has never been clearer. What’s missing is the investment. 

It’s time to shift the narrative. Women’s health is not a niche market, it’s half the market. Investors, researchers, and policymakers need to take this sector seriously, not just for economic gain but to ensure women receive the healthcare solutions they deserve. 

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