Why Investors Shouldn’t Ignore Femtech Anymore

Femtech, a term coined by Clue founder Ida Tin in 2016, refers to technology-driven solutions addressing women's health. It has emerged as a dynamic sector with substantial growth prospects. Investors seeking impactful opportunities should consider the compelling data underscoring the importance of investing in femtech. 

For decades, women’s health has been underfunded, underserved, and overlooked. However, with the global femtech market projected to reach US$139.51 billion by 2031, the industry is emerging as one of the most lucrative and impactful investment opportunities in healthcare and technology. From AI-powered fertility tracking to remote diagnostics for gynecological conditions, femtech is no longer a niche category but a booming sector that investors can’t afford to ignore.

The global numbers speak for themselves:

• The global femtech market was valued at US$45.75 billion in 2022 and is growing at a CAGR of 13.12%.

• Women control 80% of healthcare decisions and represent a US$1 trillion market opportunity in healthcare spending.

• Despite these figures, only 1% of healthcare research and innovation is dedicated to female-specific conditions.

What about Latin America?

• 53 startups are driving innovation in women’s health.

• Brazil, Argentina, Mexico, Chile, and Nicaragua are the leading countries in the region.

For investors, the gap between demand and available solutions presents a massive market inefficiency, one that smart capital is already moving to correct.

Global Femtech Success Stories

While the femtech movement has gained traction worldwide, regional success stories highlight the sector’s diverse opportunities and impact.

Latin America: A Market on the Rise

Latin America’s femtech sector is growing rapidly, fueled by increasing internet penetration and shifting cultural attitudes. One standout case is Plenna (Mexico). Founded in 2021 by Giovanna Abramo and Lorena Ostos, Plenna offers a comprehensive women's health platform providing both in-person gynecology services and virtual consultations in mental health, nutrition, and primary care. In December 2022, Plenna secured a US$4.4 million seed round led by Urban Innovation Fund, with participation from Canary VC and others, to expand its services and launch a new patient portal.

Another rising player is Theia (Brazil). Co-founded by Flavia Deutsch, Theia is a healthtech company offering holistic maternal care services, accompanying women through pregnancy, childbirth, and postpartum. In 2019, Theia raised a US$1.7 million seed round to develop its parental support platform, aiming to provide comprehensive support for mothers in Brazil. ​

Europe: Innovation at the Forefront

Elvie (UK), founded by Tania Bolera, is a leading company in connected health devices for women. It raised over US$100 million from investors such as Michael Spencer, for its award-winning smart breast pump and pelvic floor trainer. Its success demonstrates how hardware innovation in femtech can drive significant revenue while improving maternal health outcomes.

Meanwhile, Inne (Germany), established in 2016 by Eirini Rapti, offers a biosensor mini-lab that enables women to monitor daily progesterone levels through saliva samples, providing insights into reproductive health and ovulation. In May 2022, Inne secured a US$10 million Series A funding round led by DSM Venturing, bringing its total funding to US$18.8 million.

United States: The Unicorns of Femtech

The United States has produced some of femtech’s most successful startups, proving the sector’s scalability and profitability.

Maven Clinic, was founded in 2014 by Kate Ryder, who serves as the company's CEO. It’s the world’s largest virtual clinic for women and families, and became the first femtech unicorn in 2021 after raising US$110 million, bringing its total valuation to over $1 billion. Employers, including major corporations like Microsoft and L’Oréal, now offer Maven’s services as part of their benefits packages.

Tia, co-founded in 2016 by Carolyn Witte and Felicity Yost, is a hybrid healthcare provider. It raised US$100 million to expand its physical and digital women’s health clinics, reflecting growing demand for integrated, patient-centric care models.

These companies highlight not only the sector’s financial viability but also the critical role of women-led startups in shaping the future of healthcare.

Including women in the decision-making of femtech companies is crucial for ensuring that products and services genuinely address the unique health needs of women. Women bring firsthand experience and insights that lead to more user-centered innovations, improving the effectiveness and accessibility of solutions. Their leadership also helps challenge biases in medical research, funding allocation, and product development, ensuring that female health issues, often overlooked, receive the attention they deserve. Moreover, having women at the helm of femtech companies fosters a more inclusive industry, attracting diverse talent and investment. Companies as mentioned before, exemplify the growing impact of women-led startups in the femtech sector, proving that when women are in leadership roles, the industry thrives with more relevant, innovative, and successful solutions.

Why Investors Can’t Ignore Femtech

• Explosive Growth Potential
  The sector’s 13.12% CAGR outpaces many traditional healthcare markets, indicating strong, sustained demand.

• Untapped Market With Massive Demand
  Women’s healthcare has been historically underserved, creating pent-up demand for innovative solutions.

• Diverse Revenue Streams
  From subscription-based apps and direct-to-consumer products to enterprise health services, femtech startups offer multiple monetization opportunities.

• Corporate and Government Support
  Companies are integrating femtech solutions into employee benefits programs, and governments worldwide are increasing funding for women’s health research.

• Strong Exit Potential
  Large healthcare companies are increasingly acquiring femtech startups to diversify their portfolios, making femtech an attractive sector for early investors.

Key Investment Trends and Projections

As femtech evolves, investors are focusing on the next wave of innovations:

• AI-Powered Diagnostics and Personalized Medicine: Advanced AI-powered platforms for reproductive health, menopause, and chronic disease management are driving new investment rounds.

• The Menopause Market Boom: With 1 billion women reaching menopause by 2025, investors are backing startups focused on hormonal health and aging solutions.

• Femtech-as-a-ervice (FaaS): More corporations and insurers are integrating femtech solutions into their offerings, expanding revenue streams.

• Regulatory Tailwinds: Governments and healthcare bodies worldwide are increasing funding for female-specific research, driving long-term market expansion.

Barriers and Challenges in Femtech Investing

Despite its rapid growth, the sector faces hurdles:

• Regulatory Complexities: Many femtech products require FDA or EU approval, which can delay go-to-market strategies.

• Bias in Funding: Only 3% of digital health funding goes to femtech, despite its massive market potential.

• Scaling Issues: Adapting products to different cultural and healthcare landscapes remains a challenge.

How Investors Can Win in Femtech

To overcome these barriers, investors should:

• Diversify Their Portfolio: Investing across multiple femtech verticals reduces risk.

• Look for Strong Clinical Validation: Startups with data-backed solutions have higher chances of regulatory approval and adoption.

• Back Market-Ready Solutions: Platforms already working with insurers, hospitals, or large employers have a clearer path to scale.

• Focus on Acquisitions: Large healthcare companies are actively acquiring femtech startups, making this an attractive exit strategy for early investors.

Final Takeaway: The Time to Invest is Now

Femtech isn’t just an emerging trend, it’s a high-growth sector poised for massive returns. As demand accelerates and corporate adoption grows, investors who act now will be at the forefront of a booming industry. The question isn’t whether femtech will thrive, it’s whether you’ll be part of the movement reshaping the future of healthcare. Are you in?