Despite rising interests in digital health tools for women, the femtech market continues to suffer from gaps in funding compared to other segments.

Women Who Tech, a nonprofit to uplift women-led startups, is aiming to close that gap with its FemTech and HealthTech Grants Challenge. It is targeting early-stage women-led startups that create female health-focused technology products or services.

Applications are now open through July 18, 2021. Following the deadline, Women Who Tech’s investor jury will review the applicants and select the five startups that will participate in a six-week virtual program to help them finalize their investor pitches.

At the end of the program, the startups will present to an investor panel and receive an award of $20,000 in equity-free grant funding. Beyond the grants, W Fund, SteelSky Ventures, Citrine Angels and other investors will review the pitches for further investments.

WHY THIS MATTERS

On the whole, digital health is bringing in record-breaking amounts of funding. The first quarter of 2021 saw digital health startups raise a total of $6.7 billion – making it the largest funding quarter to date.

Still, femtech companies have had disproportionate investor backing, historically. Since 2011, only 3% of digital health funding in the U.S. has focused on women’s health.

Further gaps exist within femtech, since the majority of funding tends to go to companies targeting fertility, pregnancy or motherhood, even though less than 45% of the female population in the U.S. is of reproductive age.

THE LARGER TREND

The lack of funding signals a missed opportunity for investors. Frost & Sullivan estimates that the femtech market will be worth $1.15 billion by 2025. A significant portion of that growth is expected to come from currently untapped market areas, including menopause, geriatric care, mental health, fibroids, endometriosis and personalized holistic care.

Existing players in the space include Orchyd, Lady Technologies, Willow and Alife.

Direct-to-consumer virtual care company Ro recently indicated its interest in women's health by acquiring reproductive health company Modern Fertility.

A newcomer, Allara, created a platform for patients with Polycystic Ovary Syndrome (PCOS) that connects them with clinicians and resources.