Investment in Women’s Health Startups Soars 314%, Outpacing Overall Health Sector
A new report from Silicon Valley Bank (SVB) reveals that investment in startup companies addressing women’s health has increased by 314% since 2018. This significant increase in funding surpasses the overall investment growth rate of the health sector, which saw an increase of 28% during the same period. SVB’s Innovation in Women’s Health Report delves into the fundraising and investment activity, as well as capital and valuation trends within the sector. The report defines women’s health as encompassing healthtech, biopharma, diagnostics/tools, and medical device companies that cater to underserved care needs for women.
SVB’s Innovation in Women’s Health Report Highlights Investment and Valuation Trends
The SVB report not only highlights the remarkable growth in investment in women’s health startups but also sheds light on the valuation trends within the sector. Despite the increase in funding, women’s health companies often face lower valuations compared to healthcare companies as a whole. The report reveals that seed stage women’s health companies are consistently valued 20% lower than overall healthcare companies at the seed stage. This discrepancy may be attributed to the lack of data collection on women’s health conditions, which poses challenges for founders when presenting their case to investors and estimating market size.
Women’s Health Startups See Drop in Valuations, but Positive Outlook for Future Growth
While valuations for women’s health companies experienced a decline in 2023, the report suggests a positive outlook for future growth. Efforts such as the White House Initiative on Women’s Health Research aim to bridge the gaps in research within the sector. As more data becomes available from clinical trials and research, valuations for women’s health companies are expected to increase. The report emphasizes that investors are increasingly recognizing the opportunities within emerging areas such as menopause, pelvic health, and mental health. These areas present significant opportunities for addressing women’s health needs across their lifespan.
Investment in Biopharma Surpasses Healthtech as Top Funded Women’s Health Subsector
One notable finding from the SVB report is the shift in investment within the women’s health sector. Biopharma surpassed healthtech as the top funded subsector in 2023, with an average investment of $182 million per quarter. This shift underscores the increasing recognition of the potential in developing innovative therapeutics and treatments for women’s health conditions. The report highlights that 76% of women’s health companies have a female founder, which is three times higher than the average in the overall innovation ecosystem. This representation of female founders contributes to a more diverse and inclusive approach to solving women’s health challenges.
SVB to Release 2024 Healthcare Exits and Investments Report, Previewed at J.P. Morgan Healthcare Conference
In addition to the Innovation in Women’s Health Report, SVB will be releasing its 2024 Healthcare Exits and Investments report on January 17th. This annual report will provide insights into trends in venture capital investing, fundraising, mergers and acquisitions, and IPOs within the healthcare sector. Early data suggests that US investors raised $19 billion for new health-focused venture capital and growth funds in 2023, making it the third-highest amount for any year. During the J.P. Morgan Healthcare Conference, SVB’s Life Science and Healthcare practice leaders will present a preview of the report, sharing their perspectives on the current and future state of the healthcare market.
In conclusion, the SVB Innovation in Women’s Health Report highlights the considerable growth in investment within the women’s health sector, outpacing the overall health sector. Despite lower valuations for women’s health companies, efforts to bridge the research gaps present opportunities for future growth. The shift in investment towards biopharma indicates a recognition of the potential in developing innovative treatments for women’s health conditions. The forthcoming 2024 Healthcare Exits and Investments report will provide further insights into the healthcare market, including venture capital investment trends and fundraising activities.
Analyst comment
Positive news: Investment in Women’s Health Startups Soars 314%, Outpacing Overall Health Sector
Market analysis: The significant increase in funding for women’s health startups indicates a growing recognition of the potential in this sector. Efforts to bridge research gaps and the shift towards biopharma suggest a positive outlook for future growth. The forthcoming report will provide further insights into venture capital investment trends and fundraising activities in the healthcare market.
