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Our new interactive guide sheds light on investment and innovation trends in the Femtech sector.
Our new interactive guide sheds light on investment and innovation trends in the Femtech sector.
Women's health has traditionally been an under-researched and under-funded area. Until 1993, women were mostly excluded from clinical trials and research. Despite this historical neglect, the tides are now changing for the sector known as “Femtech“ - technology specifically designed to address women's health needs.
In partnership with Dealroom.co and Speedinvest, our interactive guide finds that Femtech companies constituted only 1% of the total healthtech investment in 2022, highlighting a significant gap in resources. However, a greater understanding of women's unique health needs and recent advances in medical technology have led to a surge in innovation in this sector. This transformation is powerfully reflected in the total combined enterprise value of Femtech companies worldwide, which has soared to $28 billion in 2023.
A Global Movement
Investments into Femtech companies has been on an upward trajectory since 2013, reaching a total of $2 billion in 2021 alone at its peak. Despite a slowdown in 2022, the commitment to Femtech remains robust, with $434 million invested in 2023 to date. Since 2019, more than 50% of the inestment share has been allocated to later-stage rounds of $40 million or more, pointing to a growing investor confidence and maturation of the sector.
Geographically, while the USA leads in investment, with a total of $4 billion invested in 2018-2023, Europe is home to six of the leading countries investing in Femtech: United Kingdom, Belgium, Germany, France, Ireland, and Spain, highlighting the role of Europe in this space. Despite Femtech's expanding influence, there was a significant drop in investments, particularly in Europe, which experienced a 50% decline in 2021-2022, reflecting changing market conditions and investor caution.
Femtech Segments
The guide identifies 12 Femtech categories, each addressing critical aspects of women's health. Over the past 5 years, General Health & Wellness, Reproductive Health and Contraception, and Oncology have been the most funded segments in the Femtech industry, receiving $2.2 billion and $1.1 billion, respectively. Menstrual Care ranks third in terms of funding rounds, with a total investment of $839 million.
The Rise of Mentech
The emergence of Femtech has paved the way for a counterpart in men's health - Mentech. Catgering to male-specific health needs, Mentech is witnessing growth with a total of $389 million invested in 2023 to date. The drop in investment has been slower than Femtech from its peak in 2021 at $697 million. In 2023, Mentech companies that built solutions across several categories, including sexual health, reproductive health, oncology, and general health and wellness, achieced a total combined enterprise value of $12 billion.
The Road Ahead
Femtech's increasing interest represent a turning point in the healthcare narrative, where women's health is acknowledged, funded, and innovated upon.
At MTIP, we strongly believe that there is a need for innovative solutions that address the unique health needs of women. That's why we led a EUR 17 million investment round in Apricity, a virtual fertility clinic. We recognized the need to challenge and improve the traditional fertility treatment journey, and to support the millions of women and couples undergoing IVF treatments every year.
Magdalena Plotczyk, Investment Associate at MTIP, adds: “With increased financial support and greater awareness of women's health issues, there is enormous potential for developing healthtech solutions that improve access and quality of care for women worldwide. This is a promising time for Femtech companies, and we are excited to witness the positive impact they will make.”
Read the full guide here:
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