Business type: Operator of a market research company intended to improve women’s health through data analysis. The company offers accurate, up-to-date, and thorough databases and market reports that help to predict trends, identify gaps, and create strategic business development plans, enabling clients to get accurate market research on startups, investments or exits.
Founded in: August 2022
Headquartered in: Raleigh, North Carolina, United States
Number of staff: 22
Website: femhealthinsights.com
Digital health apps create a viable solution which empowers female patients to seamlessly track symptoms over time and empower them to present incontrovertible data at medical appointments which lead to more accurate diagnosis and treatment.
I founded FemHealth Insights because I recognized a significant gap in the availability of data, insights, and market intelligence specifically in the women’s health innovation space. To effectively convince investors, companies, and governments to invest in FemTech — whether through equity, grants, or purchases — it is crucial for them to understand the potential return on investment. Before FemHealth Insights, no one had comprehensively calculated the FemTech market size, tracked FemTechexits, such as mergers, acquisitions, and public offerings, or offered a detailed database of FemTech companies.
One of the most significant trends in the digital health industry — particularly in women’s health — is the development of technology that enables tracking a wide range of symptoms. Historically, the lack of research in women’s health has left a gap in understanding by medical professionals, often leading to medical gaslighting, where women struggle to receive an accurate diagnosis as their symptoms have not been correctly understood or documented by their physicians.
Digital health apps create a viable solution which empowers female patients to seamlessly track symptoms over time and empower them to present incontrovertible data at medical appointments which lead to more accurate diagnosis and treatment. We find that most women are willing to share their medical data, if they feel in control, to contribute to the advancement of the field and prevent others from enduring prolonged symptoms.
From an investment perspective, I am particularly interested in apps that not only facilitate symptom-tracking, but also collaborate with researchers to use the data collected for scientific research. This strategy enhances the value proposition of the app and provides an innovative revenue stream without charging users directly. Such partnerships have the potential to create proprietary algorithms offering a competitive advantage in the market, as well as lead to the development of FDA-approved digital therapeutics that will further solidify the demand for this technology in the healthcare industry.
Beyond overcoming the usual startup challenges, such as finding product-market fit, developing a scalable business model, and seeking regulatory approvals, one of the biggest challenges facing FemTech companies today is the ability to access funding and secure new rounds of investment. These challenges are most prevailing for FemTech start-ups, but with adequate funding FemTech start-ups can also overcome the usual startup challenges and grow successful businesses. With 80% of FemTechfounders being female, a significant factor contributing to the funding gap is gender bias.
When these companies focus on female-specific medical care, such as those related to menstruation, breastfeeding, and menopause, there may be a lesser interest from male investors. This leads some investors to pass on a lucrative investment opportunity due to a lack of familiarity with how ordinary biological processes can significantly impact a woman’s quality of life. It also underscores the importancefor FemTech startups to understand and seek out their best target audience for funding, who are primarily female investors.
In terms of our investment strategy, FemHealth Insights aims to support FemTech companies by not only providing financial backing, but also mentorship and guidance to help them navigate industry hurdles. We actively work to mitigate risk by conducting due diligence, supporting founders in developing robust business strategies, and leveraging our network to help them access additional resources and expertise. By advocating for more gender-diverse investment teams, we can help ensure that promising FemTech innovators receive the funding they need to succeed.
When evaluating a startup for potential investment in the FemTech sector, I focus on several key qualities and strategies that indicate a company will remain innovative and competitive in the current market.
I look for companies that have established a billing code for their solution, which indicates a certain level of market validation and integration into existing healthcare systems to make their adoption more seamless. Additionally, I am interested in FemTech companies that enhance the tools used by obstetricians and gynecologists (OB-GYNs)rather than introducing an entirely new method or device. Improving existing technologies tends to be embraced more often by healthcare providers than novel technologies. Moreover, a key sign for a promising investment is motivating practitioners in new technologies through financial incentives, where the increase to revenue outweighs initial costs or investments of their time.
I prefer investing in startups led by serial entrepreneurs who have the invaluable experience and insights, who understand the complexities involved in running a startup effectively. Overall, a startup that combines market validation, practical enhancements to existing practices, financial incentives for adoption, and experienced leadership will increase the likelihood of long-term investments.
Six months ago, myinvestment focus was based on the assumption that if a new technology improved patient satisfaction, experience, or health outcomes, OB-GYNs would quickly adopt it. However, in my experience I have found quite the opposite. I hypothesize that this experience is due to the lack of innovation in women’s healthcare historically, and that as healthcare professionals, OB-GYNs are one of the practitioner groups who are most litigated, and who face some of the highest malpractice insurance fees.
Using the key qualities and strategies I discussed above, which address the financial and practical considerations that influence a physician’s decision to adopt new technologies, we ensure a smoother path for innovations to being included in the current healthcare marketplace.
To support the growth and sustainability of the FemTech industry, I would like to see the establishment of a dedicated breakthrough designation track within the FDA specifically for women’s health. Since the inception of the Breakthrough Therapy designation and the Breakthrough Devices program, the majority of approvals have been granted to women’s healthcare companies. This is largely due to the fact that many new solutions in women’s health are pioneering in nature and offer significant improvements over existing options.
A new track could also expedite the establishment of billing codes, which are crucial for companies to bring their products to market. The current process can take years, presenting a significant barrier to commercialization, which prolongs innovative solutions getting to patients.
Creating a new breakthrough designation would engage women’s healthcare experts to serve as reviewers for applications and as advocates throughout the approval process.This specialized focus would ensure that the unique needs and challenges of women’s health innovations are adequately addressed and supported, effectively fostering growth in the femtech sector and garnering greater outcomes in women’s healthcare.