Increased venture capital investment is fueling the growth of women’s health startups, according to a recent report from Silicon Valley Bank (SVB). The report highlights that investment in women’s health companies has surged by 314% since 2018, surpassing the overall investment growth in the health sector, which stands at 28%.
SVB’s report examines investment activity, fundraising, and capital and valuation trends within the women’s health sector. The report defines women’s health as encompassing healthtech, biopharma, diagnostics/tools, and medical device companies specifically catering to the underserved care needs of women. This includes conditions that impact women, disproportionately affect women, and showcase gender-based discrepancies in care.
Raysa Bousleiman, VP of Venture Capital Relationship Management for Life Science and Healthcare at SVB and co-author of the report, emphasizes the significant progress made in women’s health despite the challenges faced by the venture capital landscape. Bousleiman notes the misconception that women’s health is solely focused on reproductive years, highlighting the growing recognition of the opportunity to address women’s health needs throughout their lives. Investments are now increasingly directed towards emerging areas like menopause, pelvic health, and mental health.
However, the report reveals that women’s health companies have consistently lower valuations compared to healthcare companies in general. SVB’s data shows that seed stage women’s health companies are valued 20% lower than their healthcare counterparts. One possible reason for these lower valuations is the lack of data collection on women’s health conditions, as emphasized by SVB.
According to Bousleiman, the absence of data on women’s health poses obstacles for founders in convincing investors of the need for their companies, accurately estimating the market size, and obtaining FDA approval. Efforts such as the White House Initiative on Women’s Health Research are expected to encourage investors as they aim to close research gaps in the sector. As clinical trials progress and more data becomes available, the development of diagnostics, devices, and therapeutics to address women’s health issues will advance.
The SVB report on Innovation in Women’s Health is part of a broader series of reports examining trends in the healthcare market. The upcoming 2024 Healthcare Exits and Investments report, scheduled for release on January 17, 2024, will provide further insights into venture capital investing, fundraising, mergers and acquisitions (M&A) activity, and initial public offerings (IPOs) within the biopharma, medical device, diagnostics and tools, and healthtech sectors in the United States and Europe.
Early data from the forthcoming report indicates that US investors raised a substantial $19 billion for new health-focused venture capital and growth funds in 2023, marking the third-highest amount in any given year.
During the J.P. Morgan Healthcare conference in San Francisco, Bousleiman and other leaders from SVB’s Life Science and Healthcare practice will present a preview of the 2024 Healthcare Exits and Investments report. Additionally, the team will participate in select industry events, providing valuable insights from their expertise.
For those interested in accessing the complete Innovation in Women’s Health report and watching SVB’s recent webinar titled Unlocking the Blue Ocean Opportunities in Women’s Health, featuring investor, founder, and researcher perspectives, please visit Silicon Valley Bank’s website.
Silicon Valley Bank (SVB), a division of First Citizens Bank, is a trusted banking partner for innovative companies and investors globally. Their services include commercial and private banking tailored to the technology, life science and healthcare, private equity, venture capital, and premium wine industries. With deep sector expertise, insights, and connections, SVB operates in key innovation hubs throughout the United States. SVB’s parent company, First Citizens BancShares, Inc., is a top 20 U.S. financial institution with assets exceeding $200 billion.
In summary, the surge in venture capital investment in women’s health startups reflects the growing momentum and progress in the sector. As investments diversify into emerging areas, the industry is poised to address the complete spectrum of women’s healthcare needs. While challenges like lower valuations persist, ongoing efforts to close research gaps and collect more data are expected to pave the way for further advancements in diagnosing, treating, and promoting women’s health.
