In the current investment landscape, there’s been a noticeable slowdown in new investments across various sectors. Investors are prioritising follow-on funding for their existing portfolio companies over writing new cheques. This conservative approach is particularly pronounced in women’s health, which historically hasn’t been a mainstream focus for venture capitalists.

General venture capital (VC) firms gravitate towards what they perceive to be low-risk, high-reward investments such as software as-a-service (SaaS). These venture funds follow established playbooks and exclude opportunities which require business model innovation or exploring sectors in which they have not historically invested, a trend that has been prominent over the past decade.

This investment approach has led many general funds to shy away from women’s health, deeming it too niche, too complex, or too risky to guarantee substantial or predictable returns.

Despite lack of investment by traditional VC firms and government programmes in most markets over the past decade, innovation in women’s health is flourishing due, in part, to the full participation and rise of women in the economy who are now demanding better healthcare technologies and services.

Women are also beginning to make more investment decisions in the healthcare sector with newer VC firms and family offices being launched to focus on women’s health.

We are now witnessing true innovation in women’s health with women-led investment firms reporting massive pipelines of deal flow in the space. Here are five promising trends to keep an eye on.

1. Femtech

Historically dominated by fertility solutions, femtech is expanding and diversifying. There is growing interest in preterm birth, contraception, endometriosis, and IVF. Hormonal health applications, self-testing kits and menopause-related innovations are also garnering widespread attention, enabling women to take control of their healthcare.

The most effective platforms cost-effectively combine tech solutions, tech-enabled solutions and human-driven solutions (often via links to bricks and mortar partners) to truly drive health outcomes and patient satisfaction.

Platforms such as Daye, which offers self-care for gynaecological health; Kindbody, which provides fertility and wellness services; and Maven, a telemedicine platform; are scaling. These platforms provide women with direct access to healthcare tailored to their specific needs, offering precise diagnoses and personalised advice.

They are also attracting significant funding rounds. Kindbody and Maven set records for some of the largest fundraising in women’s health, and are driving the growth and accessibility of women’s health services and solutions.

2. Maternal health

For the first time in decades, the maternal health space is witnessing transformative innovations.

Companies like Odon (tackling forceps delivery), Lioness (addressing preterm births), and Raydiant (focusing on postpartum haemorrhage and foetal pulse oximetry) are addressing significant gaps in maternal healthcare. These innovations are designed with women’s needs in mind and have the potential to lead to significant market exits or be part of a larger amalgamation of solutions.

3. Women-centric diagnostic technologies

For decades, women were excluded from clinical trials and were not considered when developing new technologies, including diagnostic tools, medical devices and treatments. This resulted in delayed diagnoses for women, who often went months or years before receiving a true diagnosis for many gynaecological conditions, as well as certain cancers and heart conditions.

Of late, with more awareness in the space, we are seeing a significant number of companies developing new tools that can meet market demand and that are more effective, sensitive, cost-effective and significantly less invasive. These are poised to drive significant improvement in health outcomes in the coming years.

4. Personalisation

AI is increasingly being integrated into medical devices, enhancing diagnostic precision and treatment personalisation. The FDA’s regulatory requirements for inclusive data have driven a surge in the inclusion of women’s health data in AI strategies. However, there’s still a critical need for more ethnically diverse data to ensure comprehensive representation and reduce bias.

The advent of AI tools like ChatGPT has the potential to revolutionise patient outreach and product integration in women’s health.

While still in its nascent stages, ensuring reliability and localised data for these AI tools is crucial. ChatGPT could become a game-changer, offering personalised health advice and support.

5. Miniaturisation

Simultaneously, the miniaturisation of medical devices is making healthcare more accessible. Smaller, more portable devices enable remote monitoring and diagnostics, which are particularly beneficial in low- and middle-income countries (LMICs) where large, expensive equipment is not practical.

Smaller point-of-care devices can not only enable care, but often collect data from diverse sources that link to healthcare records and strengthen the broader health system.

Challenges on the path to progress

Despite these advancements, significant challenges have re-emerged to create additional obstacles. For example, abortion regulations in the US impact the market and create stress on the OB/GYN sector, leading to burnout and legal fears.

Access to reproductive care varies by state, complicating regulatory enforcement and potentially criminalising women and healthcare providers in more restrictive regions.

Another substantial hurdle is the lack of capital at early stages for pivotal trials and commercialisation. Traditional technology investors often favour non-regulatory paths, pushing for quicker revenue but potentially compromising the evidence base required for women’s health solutions.

Encouraging ongoing innovation and entrepreneurship in women’s health

On the flip side, there are positive signals for women’s health research, such as the White House’s first-ever Initiative on Women’s Health Research.

Additionally, newer funds and family offices focusing on women’s health are emerging, driving investments in software solutions alongside devices and diagnostics.

Exciting exits and up-rounds, like Axios in the incontinence space and Maven’s valuation of over US$1bn, indicate growing interest from larger players.

Digital health initiatives by companies, such as Google and Apple, and increased involvement from insurance companies are indicative of an expanding ecosystem.

This progress rests on the backs of entrepreneurs in women’s health, who have been key to moving the sector forward. They will continue to play an important role by effectively communicating their solution’s broader market potential and aligning their teams culturally and mission-wise. Their perseverance is crucial—the space is tough but growing, requiring continuous fundraising and expert validation.

While the women’s health investment landscape faces challenges, the sector is ripe with innovation and potential. By addressing funding gaps, incorporating inclusive data, and leveraging AI and digital health advancements, the women’s health sector can continue to evolve to meet the needs of women globally.

Annie Theriault is a managing partner at Cross-Border Impact Ventures (CBIV), an impact venture capital firm investing in women’s, children’s and adolescents’ health technology companies addressing large international markets.