Femtech refers to technology-driven solutions for women’s health, covering areas such as reproductive health, pregnancy care, and menopause management. Historically, femtech has been considered an underfunded sector. Recently, however, Europe welcomed its first femtech unicorn — Flo Health, a UK-based period-tracking app. This milestone has sparked significant discussions among the founders and investors about both the industry's gender and funding gap, as the startup is led by an all-male founding team. We decided to put together an overview of this growing sector, including its global and European funding landscape.
What is femtech?
Femtech, short for female technology, encompasses software, diagnostics, products, and services to address women's health needs. This sector covers a range of areas, including reproductive health, pregnancy and nursing care, menstrual health, pelvic and uterine health, sexual wellness, menopause management, and general healthcare.
The term “femtech” is relatively new, emerging in 2016 when Ida Tin, the founder of the German period-tracking app Clue, coined it. Although it's a young industry, femtech is rapidly expanding due to rising awareness of women's health issues that were once overlooked, advances in digital health technologies, and a growing demand for personalized healthcare solutions.
Global femtech market valued at $28 billion
In 2024, femtech companies have reached a valuation of $28 billion, according to Dealroom data. Although they still represent a small portion of overall health investments, the sector has experienced steady growth over the past decade. The growing prevalence of reproductive, menopausal, and general health concerns, along with various awareness initiatives, are expected to further accelerate the femtech market’s expansion in the coming years.
The market’s valuation is projected to grow to $60 billion by 2027.
North America led the global femtech market in 2023, holding the largest share at 38.64%. Europe is also a key player in the sector and, as of 2023, was home to over 20% of femtech companies.
In terms of venture capital investments, the global femtech industry have experienced a remarkable upward trend over the past decade, with a notable acceleration since 2014. The market reached an all-time high in 2021, with companies raising $2.2 billion, fueled by growing awareness and the adoption of digital health technologies. However, investment levels did slow in 2022, when the funding volume amounted to $1.3 billion, likely due to shifting market conditions and increased investor caution, though they remained above 2020 levels.
As of 2024, the US remains the leader in femtech investment, having secured $5.2 billion since 2019, followed by the UK and Israel. Despite the US leading position, six of the top 10 countries for femtech investment are located in Europe, underscoring the region's significant role in the sector.
Notable players in the global femtech market include UK-based Flo Health and Chiaro Technology, US-based Natural Cycles, FemTec Health, and Glow, as well as Germany's Clue, Israel's HeraMed, and Ireland's Coro. These companies have made significant strides in areas such as fertility management and maternal health.
European femtech sector is expected to grow to $35 billion by 2032
Although the US continues to be the largest global femtech market, there are signs that Europe is rapidly catching up. In 2023, Europe hosted 540 active femtech startups at various stages, from pre-seed to IPO, according to a recent report by Sie Ventures. The leading countries in Europe include the UK (31.8%), France (18.3%), Germany (12%), Sweden (7.9%), and Switzerland (5.5%).
According to Sie Ventures, the European femtech market is expected to exceed $35 billion by 2032, reflecting its remarkable growth. The UK stands out as a leader in this expansion, having attracted $683 million in venture capital investment since 2019. Germany follows with $212.9 million, while France has secured $87.8 million, positioning these countries as key players in the European femtech landscape.
Despite its growth, femtech has historically encountered funding challenges. In 2023, European startups in this sector received only $191 million, a small portion compared to the $9.7 billion invested in the broader healthtech industry.
European femtech startups are primarily focused on sexual and gynecological health, chronic pathologies, and preventive healthcare. However, it is worth noting that many of these startups are still in the early stages of development, with 36.8% at the pre-seed and seed stages, and 43.8% having yet to raise funds. The lack of investment remains a critical barrier to growth, as does the limited R&D funding allocated to women’s health, which stands at just 4% of total healthcare research funding.
Significant funding rounds for femtech startups
Several significant funding rounds in the femtech sector have garnered attention in recent years. For instance, Flo Health, a UK-based menstrual tracking app, raised over $200 million in a Series C funding round in 2024, making it Europe's first femtech unicorn. In total, as of 2024, there are eight femtech companies globally with a billion-dollar valuation — 7 in North America and 1 in Europe.
Another interesting example is Progyny, a US-based fertility benefits management company, that went public in 2019 with a valuation of over $1 billion and has since grown to a market capitalization of $4 billion. Other notable funding rounds include the $12 million funding raised by Cayaba Care in 2022 to expand maternity health access and services to underserved populations, and $100 million raised by Kindbody, a provider of health and fertility services, in 2023.
Flo Health has sparked a discussion about the founding gap in femtech
Despite the femtech industry's focus on women’s health, there is a substantial funding gap for female-founded startups. While over 70% of European femtech companies have at least one female founder, only 10% of venture capital in the sector has been allocated to these companies since 2014. For example, in 2022, 57 femtech companies with all-male founding teams raised $731 million, while 105 femtech companies with all-female founding teams collectively secured $408 million.
The recent funding round for Flo Health, which is led by an all-male team, sparked backlash within the industry and highlighted the ongoing issue of male founders dominating the femtech space in terms of funding volume.
“Raising money as a female founder is close to impossible, with just 2% of funding going to women (even though they on average deliver a higher return per invested dollar). Why? Because women are discriminated at every step of the process. Please remember. This is not an opinion, it’s a fact,” wrote Anna-Sophie Hartvigsen, co-founder of investment learning app and community for women Female Invest, on LinkedIn in a post that became viral.
Founders began replying to Anna-Sophie’s post with comments about their experiences with this gap, highlighting their stories of gender equality issues in the VC industry. Sarah Fraikue, founder of the German startup FlexBenAI, shared her pitching experience: "Just last month, I walked into a room full of investors — mostly men, with just one woman. I didn't even get hard questions during my pitch; I got none. There could be many reasons why, but one of them was definitely that nobody looked like me. It is proven that investors tend to invest in people they can relate to."
Although male-founded femtech companies have raised capital less frequently than those founded by women since 2018, they have secured significantly more funding overall, Sie Ventures analysis says. On average, a female-founded femtech startup has raised $4.6 million, whereas those with all-male teams have raised $9.2 million. "As a female founder, I am genuinely scared of fundraising because of this," Katharina Farkas, founder and CEO of Studydpace, expressed her concern.
To address this disparity, many European femtech companies founded by women are now targeting the US market at earlier stages to secure venture capital and access greater funding opportunities.
