Despite 2022’s headwinds, women’s health startups did better than ever before

Share to friends
Listen to this article

It’s been seven months since Roe vs. Wade was overturned, and the mud has barely begun to settle.

Politically, voters have expressed their overwhelming help for an individual’s right to entry abortion. Grassroots campaigns proceed, and technology-wise, innovation in the broader girls’s health sector is only gearing up.

But have issues improved in any respect for the sector? Or has the souring of sentiment throughout the political spectrum only scared traders off? TechCrunch carried out a vibe verify to see the place this sector stands, and located a prevailing sense of guarded optimism.

For Oriana Papin-Zoghbi, CEO and co-founder of early ovarian most cancers detection firm AOA, the sector has tons of potential to develop, however elevating capital stays a problem, as some traders nonetheless consider it as a “niche market.”

However, issues are altering slowly however absolutely: “Women still comprise the majority of investors who most deeply understand our product, but we are luckily seeing an increase in the general population who are interested in investing,” Papin-Zoghbi told TechCrunch.

She closed a $7 million seed spherical last year and is now elevating a Series A. “We still have a very long way to go in changing opinions about the importance of investing in women’s health. We are not a niche market as 50% of the population.”

Janna Meyrowitz Turner, the founding father of Synastry Capital, echoed related sentiments. She noted that girls’s health startups are wanting past conventional enterprise capital for funding, turning to avenues resembling family places of work, company enterprise capital, and crowdfunding. She’s also heard conversations about strategic mergers and joint ventures.

“I foresee capital to healthcare companies increasing in 2023,” she told TechCrunch. “But I’m not as optimistic when it comes to misogyny in the investment and medical fields shifting as quickly as public sentiment has on things like abortion or even health benefits of the female orgasm.”

The funding for girls’s healthcare firms doesn’t look all that dangerous, although. According to PitchBook, such startups raised round $1.16 billion in 2022, lower than the $1.41 billion they raised in 2021. The excellent news is that the $1.16 billion is way nearer to $1.41 billion than it’s to $496 million, which was the quantity girls’s health firms raised in 2020, and $476.8 million, the quantity raised in 2019. This signifies that traders didn’t revert to pre-pandemic ranges and the sector continues to be trending upward.

In truth, girls’s healthcare tech firms, also often known as “femtech,” did quite a bit higher in 2022 in relation to digital healthcare funding. Even although funding in the digital health sector fell to about $8.6 billion in 2022 from round $16 billion a year earlier, femtech’s share rose considerably from earlier years — the sector’s share of digital health funding was 13.26% in 2022, in comparison with 8.75% in 2021, 7.6% in 2020, and 11.8% in 2019.

Data Visualization by Miranda Halpern, created with Flourish

If something, there seems to be elevated investor curiosity to proceed funding innovation in this sector, regardless of the financial and political headwinds standing in the way.

Despite 2022’s headwinds, girls’s health startups did higher than ever before by Dominic-Madori Davis initially printed on TechCrunch


READ ALSO  A new wave of Solo GP VCs is coming to Europe and Hypernova hopes to power it