Why I’m excited about FemTech: The FemTech Forum 2020
The FemTech industry is booming: startups making products that are built for women have raised more than USD 498 million in 2019 alone, according to PitchBook data. To celebrate the innovation in women’s health, the first global virtual conference about FemTech took place on the 25th of June 2020. People from all kinds of fields — doctors, founders, venture capitalists, journalists and more — discussed a wide variety of topics ranging from data privacy concerns to product design and investments as well as sexual wellness and fertility.
What struck me the most was how far we have come already but then again how many problems are not yet being addressed by the (female) health industry. I thus want to take the opportunity to share my main insights from a venture capital & startup perspective — serving as a starting point for plenty more deep dives and discussions to follow!
🔎 On trust, privacy and innovation in FemTech
- Data collection: Understanding women’s health and changes in their body over time is of utmost importance. If one does not have the data on something, it is challenging to innovate in this space. In doing so, a digital health company should always try to ask the right questions in regard to data collection, e.g. How is technology used to solve a certain problem? What type of data is needed and how is it intended to be used?
- Sensitivity of the collected data: It is plausible that most of the data shared on FemTech applications such as period tracking or fertility apps is sensitive: one shares mood swings, personal medical history, sexual activity and much more. They thus fall under a special category of data in the GDPR. Finding the right balance between collecting the minimum possible amount of data while still being able to improve and train the algorithm / model behind the application is crucial. In addition, as each body is individual, applications idealy provide some sort of personalized experience. Personalization versus privacy is hence another balancing act to manage.
- Education regarding data privacy: Many users do not understand what data privacy means and where and with whom their data is going to end up. On the one hand, it is essential to give the user the relevant control and to embed transparency in a product with “privacy by design”. On the other hand, giving users more information on data use could potentially confuse them. Weighting up both aspects with their pros and cons is thus relevant for companies operating in this space.
Insights from: Nicole Leeds (Clue), Dr. Stephanie Kuku (Hardian Health), Natasha Singh (Gemserv), Thérèse Mannheimer (Grace Health), Helene Guillaume (WILD.AI)
👗 On designing products to suit (and fit) a modern woman’s needs
When building products for women (in this case specifically looking at the hormone-based mini lab by Inne), four areas should be considered while still keeping a human touch:
- Mobility: The product should be easily taken with the user when travelling.
- Connectivity: The user should be able to access the data wherever she is.
- Ease of use: The user should be able to easily use the product (quick measurement, handy device etc.).
- Education: The user should be educated about her body when using the product, as a lot of women do not know what they do not know.
Insights from: Eirini Rapti (Inne), Jill Angelo (Gennev)
💓 On sexual wellness and the question if it is still a taboo in business and VC
- Stiff upper lip: Sexual wellness and female pleasure is still a taboo in most societies. This makes it challenging to talk about these topics, be it as a founder in this space or as an investor trying to syndicate with other VCs. We also still do not have a conversational way of talking about our bodies, especially female bodies. Removing stigma can be achieved through accurate education; powerful, resounding persistence in mainstream spaces and humour.
- On fundraising: As a founder, be very strategic with whom you’re speaking to and who can bring you further. Consider if they care about your mission and the problem you are trying to solve. Also, business angels are much easier to approach before having huge traction compared to VCs — and there are many more women acting as angels as there are women in VC.
Insights from: Trish Costello (Portfolia), Billie Quinlan (Ferly), Lora Haddock DiCarlo (Lora DiCarlo)
💸 On investing in FemTech
- Just starting: FemTech is at an early phase — there is still a huge lack of understanding and research regarding many issues. Some companies are even the first to gather the relevant data sets to address these problems. We are thus at a good starting point to build even more and better services. Furthermore, FemTech goes beyond period tracking apps and there are still many underfunded areas such as silver tech (technology concerning issues around ageing), puberty, the pleasure gap, contraception and more.
- Overcoming obstacles: Challenges around FemTech and digital health companies in general concern data protection and privacy issues (see above) as well as monetization (besides D2C many go for a B2B2C approach which involves a double sales process). When looking at why FemTech has been underfunded for such a long time, the lack of female investors or interested male investors was mentioned as a possible explanation. It makes it harder for FemTech startups to raise money when too much time and effort is put into explaining the problem they are trying to solve instead of going into deeper product discussions right away.
Insights from: Sophia Bendz (Atomico), Maren Bannon (January Ventures), Louise Samet (Blossom Capital)
🔝 On launching and scaling a successful FemTech startup
- Fundraising issues: Some years ago, fundraising was challenging for startups in the FemTech space. Nowadays, more and more investors are ready to listen and to take these companies seriously. Nonetheless, there is still some sort of education involved around the topics mentioned above.
- Launching in FemTech: There is a massive opportunity within FemTech because it tries to solve a diverse range of different problem sets. Most importantly, we need more examples of successful founders with successful startups to serve as role models and to attract more talent and money into this space.
Insights from: Katherine Ryder (Maven Clinic), Kat Mañalac (Y Combinator), Crystal Etienne (Ruby Love), Afton Vechery (Modern Fertility), Elina Berglund Scherwitzl (Natural Cycles), Lea van Bidder (Ava)
To sum up, FemTech is a highly dynamic field, gaining momentum in solving problems that go beyond pure female health issues and thus offering vast opportunities for founders and investors alike. The Femtech Forum 2020 serves as a great example of how important it is to talk about and to destigmatize topics such as menopause, body leakage, sexual wellbeing etc.
I am always excited to discuss FemTech and everything that goes with it — if you want to exchange ideas, to send your pitch deck or to just have a chat, feel free to reach out.
