top of page
Working at home

Female Health Startups Face Unique Barriers: Investment, Insurance, and the Path to Growth

The femtech sector, encompassing innovative technology solutions for women’s health and well-being, is experiencing a surge in interest and potential. Valued at approximately $28 billion today, the global femtech market is projected to more than double to $60 billion by 2027. However, this promising growth is hindered by challenges such as limited investment, insurance obstacles, and digital censorship, according to a recent report from Tokio Marine Kiln (TMK).


The Investment Gap


Despite the market’s potential, investment in femtech lags significantly, accounting for just 1-2% of global health technology funding. Kirsten Shastri, head of life sciences at TMK, highlights a key reason: “If the majority of investors are male and you’re presenting a sanitary or fertility product, they may not fully understand its purpose or value. It’s less about bias and more about unfamiliarity.”


This disconnect is exacerbated by a historical lack of data on women’s health. For decades, women were underrepresented in clinical trials, leaving the medical community without a strong foundation of research on female-specific conditions. This gap affects not only investors but also insurers who struggle to assess risks in a relatively uncharted sector.


Take endometriosis, for example, a condition affecting one in four women. Despite its prevalence, there’s a lack of fundamental understanding in the medical community. Companies developing solutions for managing endometriosis pain face challenges in securing investment and insurance because of the absence of a baseline for comparison.


“If we don’t push forward for more research, we won’t have the data needed to back innovation or explain risks to insurers,” Shastri emphasises.


Insurance: A Barrier to Innovation


The TMK report sheds light on how insurance policies create additional hurdles for women’s health startups:


  • High Costs: 56% of founders reported that insurance costs were prohibitive.

  • Complex Processes: 51% said the process of obtaining insurance was overly complicated.

  • Limited Understanding: Many brokers (42%) and underwriters (39%) lacked understanding of the unique risks in the femtech sector.

  • Policy Inadequacies: Outdated exclusions and rigid policies left 39% of founders with coverage that didn’t meet their needs.


Shastri explains, “Many insurance policies targeting health startups aren’t fit for purpose. Businesses might secure coverage, but it often excludes critical areas specific to their work.”

To address these challenges, TMK has launched a bespoke life sciences insurance product designed for sectors including femtech, biotechnology, pharmaceuticals, and telemedicine. This comprehensive policy aims to reduce coverage gaps by integrating liability risks with cyber and intellectual property protection.


“Founders should focus on building revolutionary products, not deciphering insurance,” Shastri adds. “Our role is to collaborate and ensure they have the right coverage, so they can concentrate on what matters most.”


A Promising Future

Despite the hurdles, the future of women’s health startups is bright. Innovations in artificial intelligence, fertility treatments, and cancer screening are leading the charge in transforming women’s health care.


“There are amazing advancements happening, like AI-powered cancer screenings or the repurposing of dormant drugs to save lives,” Shastri says.

While TMK and other insurers may not be in the labs developing treatments, their role in providing tailored insurance solutions is pivotal. By reducing barriers and supporting these startups through clinical trials and market launches, they enable progress in a critical field.


“It’s rewarding to make insurance one less challenge for these companies,” Shastri reflects. “We’re the safety net in the background, allowing innovators to focus on improving women’s health.”

Breaking the Cycle


For femtech to reach its full potential, there’s an urgent need for greater investment, better insurance solutions, and more robust research into women’s health. By addressing these barriers, the sector can continue to drive forward innovations that improve the lives of millions of women worldwide.


The question is no longer whether femtech can grow—it’s how quickly we can clear the path for its success.

1 view0 comments

Comments


bottom of page