Innovation in Women's Health Report
2023
Key takeaways
314%
Increase in women’s health VC investment since 2018
2023 is on pace to become a top three funding year for the women's health sector.
$435M
Investments in non-fertility startups in Q3 2023
This single quarter record shows a heartening shift in the long-held misconception that fertility and pregnancy are the sole focus of women’s health.
76%
Of women’s health companies have a female founder
This rate is three times higher than the overall innovation ecosystem.
Unstoppable momentum
Women’s health investment flourished the past five years, experiencing a 314% increase in investments compared to a 28% increase in overall healthcare investments. On a YTD basis, deal count is down 8%, but investment dollars are up 12%.
Compared to the slowdown happening in the broader innovation economy, women's health is seeing more of a speed bump. We expect deal counts and dollars to accelerate with a greater realization of the unmet health needs of women, improvement in women’s health research and funding as the sector matures.
Addressing unmet needs with life sciences
Biopharma surpassed healthtech as the top funded women's health subsector during the last four quarters, with an average investment of $182M per quarter. Yet there remains an underrepresentation of the life sciences which comprise 66% of overall healthcare deals but only 46% of women’s health deals.
Historically, women’s health solutions have focused on healthtech rather than life sciences. However, the increasing availability of clinical research and outcomes data is paving the way for science-based solutions. We foresee this progress leading to significant advancements in the development of diagnostics, devices and therapeutics specifically tailored to address women's health needs.
Uncovering valuation disparities
Not unlike other startups, women’s health companies saw valuations drop in 2023. Yet, data revealed that women’s health companies are valued even lower than healthcare overall. Seed stage women's health companies were consistently valued 20% lower than seed stage health companies overall in 2023.
One reason for the lower valuations could be the lack of data collection on women’s health conditions. This is a roadblock when it comes to convincing investors there is a need, accurately estimating market size, receiving FDA approval, and getting reimbursement in unchartered waters. However, valuations could increase as investors are encouraged by efforts such as the White House Initiative on Women’s Health Research which aims to close the research gaps in the space.
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Written and researched by SVB experts
Our deep relationships with women’s health founders and investors inform our insights and give us a vantage point unlike any other bank.
