Increased Venture Capital Investment Bolsters Women’s Health Startups
This article discusses the increase in venture capital investment in startups addressing women’s health. According to a report from Silicon Valley Bank (SVB), investment in women’s health companies has increased by 314% since 2018, while overall investment in the health sector has increased by 28%. The report examines fundraising and investment activity, as well as capital and valuation trends in the women’s health sector.
- Investment in women’s health companies has increased by 314% since 2018
- Valuations for women’s health companies tend to be lower than overall healthcare companies
The report defines women’s health companies as those in the healthtech, biopharma, diagnostics/tools, and medical device sectors that address underserved care needs for women. This includes conditions that uniquely impact women, conditions that disproportionately impact women, and conditions that have gender-based discrepancies in care. The report highlights that investments are shifting into emerging areas such as menopause, pelvic health, and mental health.
However, despite the increase in investment, women’s health companies have seen valuations drop in 2023. The report suggests that one reason for this could be the lack of data collection on women’s health conditions, which can be a roadblock for founders when convincing investors of the need for their company. However, efforts such as the White House Initiative on Women’s Health Research could increase valuations as they aim to close research gaps in the sector.
Key findings from the report include:
- Investment in women’s health venture capital has increased 314% since 2018
- Investments in non-reproduction startups reached $435 million in Q3 2023
- Biopharma surpassed healthtech as the top funded women’s health subsector in 2023, with an average investment of $182 million per quarter
- 76% of women’s health companies have a female founder, three times higher than in the overall innovation ecosystem
The report concludes that women’s health is showing significant momentum and progress, despite broader challenges in the larger venture capital landscape, and that there is a tremendous opportunity to address the complete spectrum of health needs throughout a woman’s life.
