Can investors help women’s health break through the glass ceiling?
Deloitte’s analysis of health tech investment trends reveals an increased focus on women's health, but challenges remain.
Peter Micca
Jennifer Radin
Sheryl Jacobson
Christine Chang
Steve Davis
Madhushree Wagh
Women’s health1 might finally be getting the attention it deserves, according to an analysis of US health tech investment trends. Although venture funding in the overall health tech market2 fell 27% between 2022 and 2023, investments in innovators focused on women’s health grew 5%, marking a difference of 32 percentage points. While women’s health represents an opportunity for innovation in a critical market, companies in this space attract just 2% of the venture funding allocated for the entire health care industry, according to our analysis of PitchBook data.
For the past four years, the Deloitte Center for Health Solutions has analyzed the health innovation landscape, most recently with a deep dive into health tech and platform-enabled ecosystems. This year, we focused on investment trends among innovators focused on women’s health but also explored investment trends more broadly across the overall health market (this includes health care services, health care technology systems, pharmaceuticals, biotechnology, and medtech companies). We evaluated venture capital deals using fund performance data from PitchBook. To supplement the data analysis, we interviewed a cross-section of investors and startup executives from November 2023 to January 2024 to explore how the health investment landscape has changed, particularly as it relates to women’s health.
Investments in health innovators have cooled at same rate as the overall market
According to our analysis, funding for health innovators dropped about 50% between 2021 and 2023—likely due to elevated interest rates and inflation, global conflicts, and changing investment strategies. Nevertheless, investments in this space have held steady at about 25% of the overall venture capital investment market, demonstrating that investors appear to continue to believe that health care is a strong space for innovation.
Between 2020 and 2022 (during the height of the COVID-19 pandemic), there seemed to be a high level of optimism among many entrepreneurs and investors across myriad industries. However, the resulting surge in funding appears to have been an anomaly rather than the beginning of a trend. In 2021, health innovation companies signed 2,809 deals, drawing more than $80 billion in investments. This accounted for 23% of all venture funding that year. The pharmaceuticals and biotechnology sectors received almost half of all health funding, totaling $38.8 billion. However, by 2023, investments in the health sector had dropped to $41.2 billion, with the number of deals falling to 1,787.
Several factors might have caused investors to change their investment strategies. First, low interest rates, which hovered near 0% in 2021,3 may have encouraged some venture capitalists to consider riskier investments. Moreover, as one interviewee described, the pandemic might have attracted “tourist investors” from outside of health care that saw the value in health-focused innovators. By 2023, however, interest rates topped 5%,4 which likely created a more risk-averse investment landscape. Due to the rise in interest rates, the cost of capital is now at its highest rate in more than two decades.5 As a result, the so-called tourist investors likely left the health space, potentially to pursue better-understood opportunities.
Despite the drop in investment dollars, health innovators continue to make up about the same percentage of overall early-stage investments. In 2023, health companies attracted 24% of the overall funding market, compared to 25% in 2022 and 23% in 2021 (figure 1). This seems to illustrate the sector’s resiliency and demand for innovation, even during an economic downturn.
Funding trends in women’s health
The US health system was not designed for or by women.6 As a result, the health needs of women have historically been underprioritized.7 The same can be said for the investment landscape: Women’s health represented just 2% of the $41.2 billion in venture funding that went to health innovators (in all categories, including health care services, health care technology systems, pharmaceuticals and biotechnology, and medtech companies) in 2023, according to our analysis of PitchBook data.
But past investments might not be indicative of where women’s health is headed. Investors appear to be gaining interest in women's health, according to interviews with venture capitalists, startup technology firms, and other stakeholders. This is likely being fueled by a greater public awareness of gender disparities. However, a startup focused on women’s health might have difficulty attracting the same valuation as other health innovators. As a result, some women’s health companies might be undervalued.
According to our analysis, investments in health tech companies focused on women’s health peaked in 2021 with $629 million and 39 deals. This mirrored broader investment trends across all health-related innovators. While investments in women’s health companies fell 27% in 2022, there was a rebound in 2023 with $481 million and 21 deals (figure 2).8
More than 60% of women’s health-focused companies were founded in the six years leading up to 2022.9 Over the past decade, there has been a 1,000% increase in the number of businesses in this space, according to FemHealth Insights research.10 In addition, some large companies are beginning to focus on women’s health. Alphabet’s Google Ventures, for example, led a series A funding round for Midi Health, a virtual clinic for women’s midlife health needs.11
In 2020, nearly 90% of investment decisions were made by men.12 Moreover, innovators led by all-male teams were four times more likely to receive funding than companies that had even one female leader, according to a 2017 study.13 Consequently, though 76% of women’s health companies have a female founder,14 female-led and women’s health-focused innovators might have a difficult time securing the funding they need to function effectively or survive. Companies founded solely by women—across all industries—accounted for just 2% of the total funding invested in VC-backed innovators in the United States.15
Venture capitalists might be looking for opportunities that could yield earlier profitability, given that interest rates are higher now than they were a couple of years ago. In response, some innovators may be getting more creative around funding, whether looking at diverse funding sources like friends and family, private foundations, universities, and government funding (See sidebar, “Using tech to prevent pelvic floor injuries,” for more information.) or flat rounds and non-dilutive funding.
Using tech to prevent pelvic floor injuries
About 30% of women will experience pelvic floor dysfunction in their lifetime.16 Pelvic floor dysfunction occurs when there is either too much tension on the pelvic muscles or not enough.17 It can lead to tears in the muscle and connective tissue, which can cause pelvic organ prolapse and bladder or bowel control problems. Materna Medical, a medical device startup, uses technology to improve women's pelvic health.18
The company’s first product, Milli, is an over-the-counter vaginal and pelvic floor dilator that helps relieve symptoms of vaginismus.19 The company also developed Materna Prep, a device aiming to prevent pelvic floor injuries during childbirth. Now in clinical trials, Materna Prep’s EASE trial is supported by a grant from the National Institutes of Health as well as venture capital and private equity investments. In a pilot study, Materna Prep reduced pelvic floor injury by 60%. Currently, there is no effective prevention for prolapse. With these investments in women’s health innovation, the company hopes to change the standard of care in childbirth, making vaginal deliveries safer and easier.
One female investor we interviewed said her male counterparts tend to shy away from investing in, or even talking about, women’s health. Often, they simply don’t seem to understand the value proposition, she explained. Other interviewees noted that there appears to be a perception among some investors that there haven’t been many exits in the women’s health space. However, we found that there have been 35 exits in the past five years, per PitchBook data. Four of the exits were via initial public offerings, and the other 31 were involved in mergers and acquisitions. Progyny Inc., a fertility benefits management company, went public in 2019 at a valuation of $1.3 billion.20 Other notable exits include Sera Prognostics and Alydia Health.
Women’s health is more than a niche market
Although women make up more than half of the US population, women’s health has long been viewed by investors as a niche market.21 Just 4% of all biopharma research and development spending goes toward female-specific conditions.22 More than one-third of the women’s health market is focused on breast feeding, reproductive health, and contraception.23 Women’s health needs, however, are significantly broader, and a growing number of startup companies are trying to address those needs (See sidebar, “Reimagining family caregiver support to reduce the burden on women,” for more information.).
Reimagining family caregiver support to reduce the burden on women
Between 18% and 22% of working Americans assist with unpaid care support of an older adult or disabled family member or friend.24 More often than not, caregivers tend to be women, people with low socioeconomic status, and people of racially and ethnically diverse backgrounds.25 Caregiving can impact the health of the caregiver—taking a toll on their physical and mental health and overall well-being.26
Wellthy has created a concierge service to assist these unpaid caregivers. Prior to launching Wellthy in 2015, CEO Lindsay Jurist-Rosner spent 28 years as the primary caregiver for her mother—who had multiple sclerosis—while also managing school and then a full-time job. She found that the ups and downs of her experience were not unique. With a team of social workers and subject matter experts, Wellthy uses a task management platform to route the appropriate task to the appropriate person at the right time. To date, Wellthy has completed more than 120,000 caregiving projects and tasks for families. The platform has helped families find appropriate home care providers, schedule appointments, navigate insurance options, and address drivers of health (also known as social determinants of health), including housing insecurity. Wellthy’s most common user profile is that of a daughter seeking assistance with caregiving tasks.
Working with payers and employers, Wellthy is aiming to reduce health care costs (for example, by avoiding costly hospitalizations) and reduce employee burnout. Access to caregiving benefits can reduce absenteeism and burnout among workers, according to a 2024 report from Harvard Business School.27
While women often have different health needs than men, there can be little to differentiate the type of care they receive. Some of the health conditions unique to women include menstrual health, menopause, and cervical cancer. Women are more likely than men to be affected by autoimmune disorders and Alzheimer’s disease.28 Some health conditions, like heart disease, affect men and women differently.29 Cardiovascular disease is the leading cause of death among women because their symptoms are often misdiagnosed.30
Symptoms can present differently for men and women. Chest pain is a telltale symptom of a heart attack for men. Women experiencing a heart attack, however, might feel upper-back pain, nausea, or shortness of breath. Female patients often don’t tie those symptoms to a heart attack, and some physicians have not been trained to recognize those gender-specific symptoms.31 This highlights one of the reasons why heart disease is the leading cause of death for women in the United States.32 Besides being twice as likely as men to die from a heart attack, women also have a higher likelihood of experiencing chronic pain,33 suffering from strokes,34 or developing neurodegenerative diseases.35 Additionally, drivers of health impact men and women differently, most often leaving women with less access to financial help, education, transportation, and other resources which decreases access to health.36
Symptoms specific to women can be difficult for clinicians to recognize, perhaps due to an ingrained gender-agnostic approach to medicine. As Nina Goodheart, senior vice president of structural heart and aortic at Medtronic, explained during an interview, “We've got to stop thinking that men and women are the same because they're not. It's important to understand the differences, target them, and treat them appropriately.”
Health conditions that are either unique to women or more prone to affect them tend to have higher out-of-pocket costs compared to costs for men. This can create a challenge for women trying to access necessary care. Even after excluding the cost of maternity care, women still spend an average of 18% more on out-of-pocket medical costs than men, according to analysis by Deloitte actuaries. That translates to about $15.4 billion a year in additional out-of-pocket spending. Moreover, while women have 33% more doctor visits than men, just 4% of medical research is specific to women, and half of that research is in oncology. Only 2% of non-cancer medical research is focused on women’s health.
Gender bias and systemic challenges to women’s health
While women in the United States have a longer life expectancy than men (79.1 years versus 73.2 years as of 2022)37 they also suffer higher morbidity rates across several conditions.38 Gender bias can keep some women from receiving the appropriate treatment at the appropriate time, which can result in poorer health outcomes.
A 2019 study found that one in five women felt that a health care provider had ignored or dismissed their symptoms.39 Another study found that on average, women with abdominal pain waited longer than men to receive pain medication in the emergency room (65 minutes for women versus 49 minutes for men).40 Men are also more likely than women to receive CPR from a bystander in public.41
Reimbursement challenges—from health insurers and government payers—are a common obstacle for many innovators.42 In some cases, there isn’t an existing billing code for conditions unique to women. Complex diseases like endometriosis, which impacts about 10% of women during their reproductive years, might take multiple years to accurately diagnose. Some women lose significant workplace productivity because they experience pain and fatigue as a result of the disease.43 When they seek care, some women are denied coverage.44 In 2023, the number of International Classification of Diseases codes for endometriosis expanded from nine to more than 100. The expansion of codes is likely to lead to more appropriate treatment plans and, potentially, a change in current procedural terminology codes, which could lead to more universal coverage.45
Another challenge is that some companies in this space face resistance when trying to reach female consumers across mainstream channels. Several interviewees noted that online censoring of women’s health products from social media and search engine sites has made it difficult for some companies to reach consumers directly. The language referring to women’s conditions might be censored, and ads related to pelvic floor muscles, endometriosis, menopause, and sexual wellness are sometimes rejected while ads for erectile dysfunction are prevalent across marketing channels.46 The Center for Intimacy Justice was created to try to help bring attention to this bias which can prevent women’s health companies from reaching potential consumers.47
Moreover, even when useful tech tools like smart watches and AI are available for monitoring health, women might be more reluctant than men to share their personal health data with health care providers (see sidebar, “AI is increasingly a part of women’s health,” for more information.). According to a 2023 US Deloitte survey, only 43% of women are willing to share their health data versus 57% of men.48
AI is increasingly a part of women’s health
The use of artificial intelligence is becoming increasingly common in health. According to results from our Medtech Digital Innovation survey, more than 80% of leaders said their organization’s largest digital investments were going toward AI. At the 2024 Consumer Electronics Show, AI was embedded into various items, ranging from an anti-snoring pillow to a tiny device that clips onto glasses and reads text to the wearer through a tiny earpiece. AI was also incorporated into several devices aimed at women’s health.49
Amira Health’s Terra System, for example, could be useful to women as they enter menopause.50 A wristband equipped with an AI-enabled sensor analyzes the wearer’s biometric data, determines the body’s natural rhythms and predicts hot flashes during sleep. The device signals a cooling mattress pad, which helps counter the hot flash as soon as it begins. Vivoo, a wellness app that uses urine tests to offer personalized nutrition advice, introduced an at-home test to diagnose urinary tract infections.51 The app uses a combination of image processing, machine learning, and artificial intelligence to assess color changes on a urine test. South Korea's Aidot demonstrated its Cerviray AI, which uses AI to quickly screen for uterine cancer—the fourth most common cancer in women, which can be fatal if not detected early.52 However, of the more than 3,500 booths at the world’s biggest technology show, only a few devices were exclusively focused on women’s health.
Health companies that use AI are expected to abide by new rules and regulations.53 On October 30, 2023, President Biden signed an executive order aimed at setting some ground rules for the use of AI across all industries. The Department of Health and Human Services is developing a strategy to determine whether AI-enabled technologies maintain appropriate levels of quality. And within the next year, the agency is required to establish an AI safety program that will be used to establish a framework to identify and capture clinical errors that might result from AI.54
Educating investors about women’s health could help to attract more funding to the space. This education could include everything from defining the scope of women's health to using appropriate language to describe the space. Also, the terminology in this space continues to evolve. While the term “femtech” was common a year ago, the broader term “women’s health” is now preferable, according to interviewees.
Federal initiatives shine a spotlight on women’s health
Recent federal initiatives could help to drive interest and investment in companies focused on women’s health. In November 2023, the Biden Administration launched the first-ever White House-led initiative to focus on improving the way the federal government approaches and funds research into women’s health. The White House Initiative on Women’s Health Research is expected to “explore new public-private partnerships and engage private and philanthropic leaders to drive innovation and ensure the combined power of public, private, and philanthropic sectors advances research on women’s health,” according to communications from the White House (see sidebar, “More incumbent health organizations are investing in women’s health,” for more information.).55
As part of the Initiative, the Centers for Medicare and Medicaid Services will introduce a payment model to support state Medicaid agencies that offer whole-person maternal care. The Transforming Maternal Health model56 aims to assist states as they develop and implement programs that support pregnancy, childbirth, and postpartum care for women enrolled in Medicaid or the Children's Health Insurance Program. The model also backs increased access to key providers, such as doulas, midwives, or birth centers. The model supports the White House Blueprint for Addressing the Maternal Health Crisis and the CMS Maternity Care Action Plan.
More incumbent health organizations are investing in women’s health
A growing number of health care organizations are taking a closer look at their products and services through a women’s health lens. A few examples include:
- Mass General Brigham Health Plan launched a comprehensive women’s health portfolio in 2023 to address women’s specific health care needs by expanding access to appropriate care and support, while advancing health equity.57
- Atrium Health recently introduced Atrium Health Sanger Heart & Vascular Institute Center for Women’s Cardiovascular Health.58 It will focus on heart conditions that are most prevalent among women, even rare disorders like fibromuscular dysplasia, a blood disorder that can lead to stroke, of which 90% of people who have it are women. The center also includes the Cardio-Obstetrics Clinic, which focuses on women’s cardiovascular care from pregnancy through postpartum.
- Northwell Health launched the Katz Institute for Women’s Health, a network of experts focused on all areas of women’s health.59 The Institute includes a wide range of clinical departments (including cardiology, endocrinology, and orthopedics) to meet women’s health needs.
- The Magee-Women’s Research Institute has focused exclusively on research related to women’s health and reproductive biology since 1992.60 Its relationship with the University of Pittsburgh Medical Center allows it to conduct basic, translational, and clinical research in areas including reproductive development, infectious disease, cancer, and wellness.
- Medtronic has created a GYN & Women’s Health clinical solution61 and is looking at multiple therapeutic areas through a gender lens to improve its offerings. Clinical trial diversity is another area the company is looking at both from a gender as well as race and ethnicity viewpoint.
- Organon, founded in 2020, is a pharmaceutical company focused on women’s health.62 Its more than 60 products range from reproductive health to oncology, heart disease, and asthma.
Areas outside of women’s health could be untapped opportunities
In addition to women’s health, interviewees noted that there are a number of other underserved markets with unmet medical and health related needs. These include older adults, rural health, pediatrics, drivers of health, Medicaid populations, and lesbian, gay, bisexual, transgender, queer, intersex, or asexual (LGBTQIA+) people (See sidebar, “Offering personalized and inclusive transgender health care,” for more information.). Investments in elder care, while small compared to the overall market ($397 million in 2023), are down from $664 million in 2021, following overall investment market trends, according to PitchBook data. With the increase in the aging population63 in the United States, as well as other parts of the world, innovators that can address the unique needs of this population could be attractive to investors.
Offering personalized and inclusive transgender health care
LGBTQIA+ people are more likely than other populations to experience certain health-related challenges and disparities.64 In addition, about 44% of the LGBTQIA+ population earns less than 200% of the federal poverty level, which can make it difficult to access health care services.65
Health tech company Plume provides online health care services to individuals who are transgender, nonbinary, and gender non-conforming around the United States. Its mission is to close gaps in transgender health care by providing individualized and consistent care in an affirming environment. The organization provides gender-affirming hormone therapy, mental health, and other clinical services, care navigation, as well as transition help including peer support groups, and letters of support for name change, gender marker change, and gender-affirming surgery. Plume focuses on community experience, culturally driven care, and a holistic view of the patient. About 70% of Plume’s staff are transgender themselves.
The ability for patients to access appointments within days versus months can significantly improve access to care for this population who have been underserved by the health care system.66 Furthermore, the virtual platform offers increased safety and privacy. While Plume charges members a monthly fee, insurance coverage is expanding in an effort to further drive down the cost of care.
Prioritizing and investing in women’s health
Women’s health has historically been viewed through the narrow lens of reproductive health.67 As a result, there are large gaps in general health, well-being, and health policy that should be addressed to help attain equity in health, access, and care delivery. According to interviewees, the concept of women’s holistic health, or taking care of the whole person, appears to be emerging as a central aspect of health care delivery.
There can be an economic benefit to having an equitable emphasis on women’s health. Organizations that prioritize women and their health could help reverse the historic underrepresentation, improve quality of life, and increase the number of productive years women spend in the workforce. Women make up nearly 60% of the paid workforce in the United States and 65% of the unpaid workforce (for example, caregivers for children and other family members).68 Women also tend to serve as the chief medical officer for their families and are responsible for most medical decisions.69
The future of women’s health will likely depend on how quickly the investment cycle bounces back, according to an investor we interviewed. As an investor said, “If the cycle follows historic patterns, investments will come roaring back in 5 or 6 years. That could be great for women's health companies that have been recently funded … but first, they need to survive the current downturn.” In other words, it’s important to not only brace for the fluctuations in the investment cycle but also help ensure the survival of women's health companies during downturns.
As several interviewees noted, the hope is that eventually women’s health will be considered more than a niche market. Until then, the collective efforts of female investors, founders, and leaders in government and industry, as well as male allies, are needed to increase investments in women’s health. To capitalize on this opportunity, leaders in this space should consider:
- Identifying the current state of play for your organization in terms of women’s health investments and delivery of products and services
- Developing a strategy to address women’s health opportunities and unmet needs through the lens of products, services, and innovation
- Accounting for women’s data privacy concerns
- Identifying therapeutic areas that are underinvesting in women’s health that align with your strategic priorities
- Considering build or buy approaches in priority women’s health areas
- Considering the tax implications and opportunities of investment in women’s health (minority- and women-owned businesses) and tax incentives through the Inflation Reduction Act, and
- Creating a measurement and evaluation framework to monitor strategic investments and identify further gaps and unmet needs.
The future of women's health appears promising, but it will likely require a shift in perspective, investment strategy, and collaborative effort. Prioritizing women's health not only helps to promote equity but can also present economic benefits, given that women make up a significant proportion of both paid and unpaid workforces and are often the primary health care decision-makers in families. Investors could help innovative companies break through the glass ceiling in women’s health while addressing long ignored or misunderstood health issues. Working together can help ensure a healthier and more equitable future for all women.
This article should not be deemed or construed to be for the purpose of soliciting business for any of the companies mentioned, nor does Deloitte advocate or endorse the services or products provided by these companies.
