Investment Trends in Women's Health Innovations

In 2024, healthtech startups secured a total of $28.5 billion in funding, with a significant portion allocated to women's health and femtech initiatives. Despite the substantial capital influx, investment in these sectors remains relatively modest compared to the overall healthtech landscape.

Funding Dynamics in Women's Health

Of the $28.5 billion raised by healthtech startups, $1.6 billion was directed toward femtech, comprising about 6% of the total. Meanwhile, investments specifically targeting women's health conditions amounted to $3.5 billion, representing 8% of the total funding. This marked increase in attention to women's health signifies a growing recognition of its importance, yet underscores the need for more equitable distribution of resources.

From 2019 to 2024, investment in women's health conditions has tripled, highlighting a burgeoning interest in addressing these long-overlooked issues. Despite this progress, certain areas within women's health require further financial attention. For instance, menopause has emerged as a rapidly expanding field of deal flow, yet cognitive health and postmenopausal aging are areas urgently in need of increased funding.

Challenges and Opportunities

Women's health issues have historically been largely ignored by research efforts, a trend that continues to impact funding dynamics today. Investors, however, are beginning to see women's health as a systemic public health issue with broader implications. This perspective shift is essential in driving further investment and innovation in the sector.

Women's health startups often encounter a growth-stage cliff, where initial funding is not followed by subsequent rounds, posing challenges to scaling. Additionally, cultural stigma surrounding women's health topics and systemic barriers continue to hinder the sustainability of business models within this sector.

Despite these challenges, there is a positive trend toward increased financial support for women-led startups. More loans are being extended to companies helmed by women, and impact-driven investors are channeling additional capital into these ventures. This growing movement aims to bridge the financing gap that has historically excluded many women-led businesses from receiving adequate funding.

Global Perspectives and Initiatives

Gender-lens investing is gaining traction in Nigeria, where domestic fund managers are increasingly supporting enterprises led by women. This approach not only fosters greater inclusion but also promotes economic growth by empowering female entrepreneurs. Across Africa, there is a concerted effort to bolster support for female founders, with various initiatives providing capacity-building support for early-stage startups.

The Africa Women Innovation and Entrepreneurship Forum (AWIEF) is one such initiative that actively supports small and medium-sized enterprises (SMEs) led by women. By offering resources and mentorship, AWIEF helps female entrepreneurs navigate the challenges of scaling their businesses and accessing new markets.

The Road Ahead

While the investment trends in women's health innovations are encouraging, there is still significant room for growth. Addressing the underfunding of cognitive health and postmenopausal aging, as well as overcoming systemic barriers, will require ongoing commitment from both investors and policymakers.

As the conversation around women's health continues to evolve, it is crucial for stakeholders across the ecosystem to collaborate and create sustainable solutions that address the unique needs of women worldwide. With increased awareness and targeted investments, the women's health sector has the potential to make profound impacts on healthcare outcomes and public health at large.