Femtech’s Rise in Health & Financial Services

Investment Thesis: Women have been neglected from major industries like healthcare and financial services, hence femtech products and services built for women’s needs inherently disrupt and create markets.

Image Courtesy of Usbek & Rica.

Context

Given women’s historical exclusion from many areas, the emerging femtech space within healthcare and financial services offers product innovation that draws from a previously untapped market.

• The US has notoriously high health prices and low healthcare accessibility for women.
• Overall healthcare spending in the US is around $11.9 trillion or about $11,200 per person.
• Additionally, women face a Pink Tax in relation to their healthcare costs that impacts medically necessary products related to menstruation.
• Similarly, financial products are not built for women.
• Women tend to make less money, have fewer savings, and live longer lives; hence, products that do not incorporate these factors will fail women.
• Given that women make up 51% of the population, companies democratize products and services built for women’s specific problems are at a huge market advantage and create social good.

Market Overview

• Femtech, health: Given the TAM for all healthtech is $106 billion and given that women’s healthcare spending is 132% that of men’s, the total addressable market would be around $70 billion.
• Femtech, financial services: Given that the TAM for all fintech is around $127.66 billion and women’s income is around half that of men’s and their wealth is around one third of that of men’s, the total addressable market would be around $51 billion.

Interesting Companies with Venture Returns

• Modern Fertility, D2C fertility related products including home fertility tests, ovulation tests, and pregnancy tests. $60M valuation, 50 employees, $21M raised, Series A.
• Aunt Flow, B2C & B2B manufacturer of menstrual products with an emphasis on affordable access. $330K valuation, 16 employees, $1.5M raised, Seed.
• Ellevest, Roboadvisor created for women to assist them in achieving financial goals like retirement and building a business. $187M valuation, 103 employees, $81.5M raised, Series A2.
• Snowball Wealth, Personal wealth platform to help women tackle their consumer and student debt. Undisclosed deal and company information.