Investments in women’s health startups remain low

The trend: Investments in the women's health space remain alarmingly low, according to a new report from Women’s Health Access Matters (WHAM) and KPMG.

Unpacking the trend: The value of the women’s health market is projected to reach $66 billion by 2033, up from a valuation of $41.3 billion in 2023. While the space is primed for innovation, startups in the market attract just 2% of the venture capital (VC) funding that is allocated for the entire healthcare industry.

Here’s where the opportunities lie: The report identified three of the areas of women’s health that offer the greatest potential ROI for VC investors.

Menopause. Drugs, apps and wearables, and holistic treatments for the condition accounted for a global market worth $17.7 billion in 2024 that’s forecasted to reach $27.6 billion by 2033, per WHAM.

Autoimmune diseases. Some 80% of those with rheumatoid arthritis are women and the market for autoimmune disorder medications is massive. Autoimmune disease treatments are forecasted to reach $192 billion globally by 2028, per IQVIA.

Cardiovascular disease. This disease is the leading cause of death for US women, who are 50% more likely to die within the year following a heart attack than men. Annual expenditures for the treatment of cardiovascular disease in the US reached nearly $110 billion in 2017, per Medical Expenditure Panel Survey results from 2020.

Some startups addressing these and other conditions in women have seen success when VC funding has been allocated their way, showing that investments in this space have a high potential for viable returns:

Kindbody combines fertility and family-building services to address health challenges that exclusively affect women. The startup currently boasts a valuation of $600 million.

Seaport Therapeutics develops treatments for depression and anxiety, which disproportionately affect women at more than twice the rate of men. The startup recently closed an oversubscribed $225 million Series B funding raise after a $100 million Series A haul, reflecting robust demand for treatments in this space.

Oura recently updated its fourth-generation smart ring to include women-centric features such as menstrual tracking and pregnancy insights. The company is valued at $5.2 billion and is well-positioned for further success—some 90 million Americans are projected to use health-related smart wearables by 2028, up from the 83.2 million using them today, per our forecast.

The final word: Low funding levels in the women’s health space are likely the product of investors thinking about the market too restrictively.

A historical lack of understanding of women’s health has likely fostered this view. But by viewing women’s health more comprehensively—and not categorizing the market into such a limited box—investors can take full advantage of the opportunities presented by this space.

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