The Future is FemTech: Innovation and Investment in Women’s Health

The term “FemTech” received global recognition in 2016 through efforts promoted by entrepreneur Ida Tin, the co-founder and CEO of the women's menstruation-tracking app, Clue.  In essence, it is innovation at the intersection of life sciences and technology to address health issues that solely or disproportionately affect women in addition to addressing general health conditions that affect women differently to men, such as cardiovascular or oncological conditions

Innovation in women’s health has long been underfunded, under-researched, and underprioritized.  For decades, significant gaps have persisted across the healthcare landscape, reflected in a lack of technological advancements specifically designed for women, absence of women in clinical trials, and disinterest in understanding how chronic diseases manifest differently in women.  A telling example of this historical disparity: it wasn’t until 1993 that the National Institutes of Health (NIH) required federally funded clinical research to include women and minorities. Often still today, health conditions not directly related to reproductive health are studied and treated as if male and female patients were biologically identical, ignoring critical sex-specific differences in providing treatment for women.^[1] This has naturally resulted in incorrect prescriptions, dosages and care for women, since modern medicine was developed based on a foundation of male subjects. 

That being said, there are a number of companies that are successfully innovating in the FemTech space, a prime example of this is DeepLook Medical, a Connecticut-based healthtech company specializing in AI-powered imaging solutions to enhance the detection and diagnosis of breast cancer, particularly in patients with dense breast tissue. DeepLook Medical’s Chief Executive Officer, Marissa Fayer, shared her thoughts with us on this sector: “Women react differently to everything from drug interactions, heart attack symptoms to the size of orthopedic surgical equipment.  This creates barriers that have never been studied before.  Without understanding the root cause, how can a doctor effectively treat their patients, which are 51% of the global population?” She added: “Women's Health is not a niche, nor is it charity.   There have been significant investments in women's health that have not been characterized as women's health (they were categorized as oncology).  This creates the perception that FemTech is a significantly smaller market than it actually is.”

The landscape is beginning to shift now.  Both investors and companies are increasingly recognizing the need for innovation in FemTech, sparking long-overdue growth in this market.  This sector is expanding rapidly, growing at a rate that is 160% faster than the broader healthcare market.^[2]   In 2024 alone, the FemTech market saw a 55% year-over-year increase, with forecasts projecting that the market will reach $206.84 billion by 2033, a 260% increase from its current size.^[3]

Yet, despite this massive potential in the market, early-stage FemTech companies continue to face significant barriers.  Many of these companies are female-founded, about 85%, and access to capital is one of the primary challenges early on, in part due to a lack of access to male-dominated financing markets.^[4]   Women represent only 17% of decision-makers at large VC firms (though 19% at smaller ones)^[5] and, so far in 2025, companies with all-female founding teams have received just 0.6% of total VC funding.^[6]   In stark contrast, companies with both male and female co-founders have captured nearly 45% of that capital.^[7]   Beyond the numbers, these founders often encounter difficulty conveying the value proposition of their product or service to male-dominated investor circles lacking a firsthand understanding of the problems being addressed.^[8]

Companies in this space not only experience difficulty in securing financing, recruiting talent is another hurdle.  Research from Harvard Business School professor Rem Koning revealed that startups focused on women’s health attract 25% fewer applicants, and those applicants typically have 30% less experience than candidates interested in other types of startups.^[9]   These challenges may already be dissuading new innovation.  In 2024, only 53 new FemTech companies were founded, down significantly from 163 in 2023 and an even steeper drop from the 508 founded in 2020.^[10]

Still, there are promising signs that momentum is building—driven, in part, by established pharmaceutical companies.  According to a recent McKinsey & Company study, a majority of the world’s 20 largest pharmaceutical companies “derive more than 60% of their revenue from treatments for conditions that uniquely, differently, or disproportionately affect women.”^[11]   It is clear that many of these pharmaceutical companies have recognized the need for additional research and investment in women’s health as many have launched targeted initiatives to support innovation in FemTech.  To name a few:

• Eli Lilly’s “The Lilly Centre for Women’s Health” dedicated to, among other things, researching the causes and effects of women’s health conditions and advocating for policies that support women’s health and access to care, as well as Eli Lilly’s collaboration with Nucleate, the Grand Challenge (providing winning biotech companies with $100,00 in non-dilutive grant funding and mentorship within Eli Lilly’s ecosystem), which has recently established a dedicated focus on women’s health;^[12]
• Pfizer’s women’s health podcast dedicated to exploring the stigma associated with women’s health issues^[13] and collaboration with Myovant Sciences providing up to $1 million in funding to companies accelerating advancements in women’s health;^[14]
• Johnson & Johnson’s venture investments in FemTech through Impact Ventures, by J&J Foundation;^[15] and
• Merck’s “Merck for Mothers,” a global initiative totaling $650 million in investment, which has made over 275 strategic investments in women’s health projects and reached over 34 million women worldwide.^[16]

The story of innovation in FemTech is, in many ways, just beginning.  While the market potential is clear, realizing it will require not only significant capital, but also continued progress in how we prioritize and value women’s health and wellness.  Whether advising companies developing breakthrough technologies in women’s health, supporting pharmaceutical companies dedicating resources to long-overdue research or guiding investors backing the next wave of innovation, we are excited to be a part of this movement and to see what’s next for the future of FemTech.