Kennedy: ‘Femtech’ has arrived; market ripe for investment

Here is a new word for your business dictionary: femtech.

It was coined a few years ago but has been in the headlines lately when companies in this space, which focuses on the health and wellbeing of women, made significant outside investments: $ 50 million last week for Flo , a smartphone app that tracks menstrual cycles; $ 75 million in August for Carrot, a fertility benefits manager; $ 80 million in July for Elvie for developing a portable breast pump.

Near home, SimpliFed, a virtual lactation advisor founded by a biomedical engineer who teaches at Cornell University, announced last week that it had raised $ 500,000 in early-stage funding. (More on that later.)

PitchBook, a Seattle-based private capital markets company, calls 2021 “a milestone year for femtech,” with global venture capital investments exceeding $ 1 billion for the first time. The company put the number of deals this year at 127; Ten years ago there were only 23 deals with a total value of $ 98 million.

Why all the attention?

FemTech Focus, a nonprofit advocating for space, says it is time for research and innovation to revolutionize healthcare for half of the world’s population who identify as female.

This can only happen if investors – usually men who run venture funds made up of other men – begin to view women’s health and well-being as something other than a “niche,” says the Houston-based non-profit .

And the women’s health market is anything but that, claims FemTech Focus.

In a report released in the summer, the sector’s spending was expected to hit $ 1.2 trillion worldwide by 2027, in categories ranging from bone and vaginal health to fertility and cardiovascular issues.

All are ripe for innovation and investment, says the group, “due to the large market size, the high demand and the limited players in this area”.

The Upstate Capital Association of New York would agree.

“Women’s health is a new focus for investors,” said Noa Simons, President and CEO of Upstate Capital, which brings companies and investors together. “More and more investment funds are pouring into solving healthcare challenges that are specifically tailored to women …” she added in a statement. “Coupled with broader industry trends in digital health … there is significant innovation affecting women’s health and, increasingly, interest in investing in the sector.”

Working with Empire State Development’s innovation and technology division, Upstate Capital will host an online networking event on Thursday showcasing SimpliFed of Ithaca, which was founded after CEO Andrea Ippolito saw firsthand how difficult it was Infant feeding can be. She raised the $ 500,000 that she just landed while pregnant with her second child.

Ippolito will take part in a “Startup Showcase” of 11 companies with pitches for funding and talk about setting up a women’s health company.

The event is part of Upstate Capital’s “Invest New York” series, which typically attracts between 30 and 70 investors from the US and Canada.

Marlene Kennedy is a freelance columnist. The opinions expressed in her column are her own and not necessarily those of the newspaper. Reach them under [email protected]

More from The Daily Gazette:

Categories: Business, News, Opinion

source https://www.bisayanews.com/2021/09/16/kennedy-femtech-has-arrived-market-ripe-for-investment/