Why does the FemTech sector, with its potential to impact 50% of the global population, remain notably underserved and underfunded?

What is FemTech?

FemTech, a term coined by Danish entrepreneur Ida Tin in 2016, represents a market sector at the intersection of technology and Women’s Health (“The Dawn of the FemTech Revolution” (2022)). It includes a wide array of technology-enabled, consumer-centric products and solutions specifically designed to address women’s unique health needs. Despite its relatively recent emergence, FemTech has its roots in a long history of women advocating for better healthcare solutions.

From the development of the first birth control pill in the 1960s to the rise of fertility tracking apps in the 21st century, the evolution of FemTech reflects a growing recognition of the importance of Women’s Health. However, this sector has historically been underfunded and underserved, that to me demonstrates an interesting paradox—it’s a sizable market opportunity with significant unmet needs.

Why haven’t markets recognized this as an opportunity?

Research Funding, Patent Output, and FDA Approvals in Women’s Health

According to NIH, 10% of spending is focused on Women’s Health, roughly $4.4B in 2020 (ORWH (2022)). While most research isn’t directed at generating intellecual property, a study from Battelle estimated that NIH funded research produced roughly 6 patents per $100M in research funding, or 1 patent per $17M (Battelle Technology Partnership Practice (2015)).

In 2022, UNC received $898M in NIH funding (UNC Office of Research (2022)). Given this, we’d expect UNC to produce ~500 patents over the course of 10 years.

It’s nice when the data lines up with reality.

Indeed, if we look at Figure 1, we see that in the last 10 years of patent filings UNC produced roughly 500 patents; however, only 9 were found to be Women’s Health related. All things being equal, if 10% of that funding is directed at Women’s Health, we’d expect about ~50 patents.

The reality is it’s more like 2%.

FemTech in North Carolina

What’s North Carolina’s track record at successful product development for Women’s Health devices?

It’s not good.

If we look Figure 2, only a handful have originated from here. While this doesn’t take into account the likely sizable other FemTech market segments (i.e., apps, wearables and other consumer products), it still speaks to a disconnect between the significant amount of unmet needs in Womens’s Health, and a related disparity of approved products to address them.

Opportunites in FemTech

In the McKinsey report, their team did an analysis of FemTech startups that deliver products and services and address the many underserved needs here (“The Dawn of the FemTech Revolution” (2022)).

This is a great visualization that shows commercial opportunities that still remain, as well as a breakdown of types of products & services out there. While Maternal health patient support is (rightly) being addressed by lots of startups, areas like benefit/financing services, new patient care models and product delivery service aren’t seeing any startup activity.

At our program here at UNC, we’ve seen a healthy amount of unmet needs in Women’s Health. So going deeper I know there are lots of opportunities in between the lines here. Some examples include Gyn infections, Women’s sexual health (see below for great Podcast about it), perinatal at home care/services and more effective solutions for pelvic floor disorder therapy.

Outro

In conclusion, the FemTech sector, despite its potential to impact so many people, remains notably underserved and underfunded. This paradox, however, presents a unique opportunity for change. The significant unmet needs in Women’s Health, coupled with the relative scarcity of approved products, highlight a vast landscape of untapped potential.

As we witness the rise of FemTech startups and an increasing awareness of the importance of Women’s Health, I’m hopeful the markets will recognize opportunity and thus drive greater investment.

The challenge lies in bridging this gap, fostering innovation, and ultimately transforming the landscape of Women’s Health.

References