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How to access femtech start-up funds in the UK

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According to UENI’s 2020 report on gender and small business, 32.37 per cent of UK businesses are currently owned by women, up from 17 per cent in 2016.

While it demonstrates the gender gap in the British business world is closing (albeit slowly), what does it mean for femtech companies?

Access to funding

The 2019 Rose Review found that female-led businesses receive less funding than those headed by men at ‘every stage of their journey’. Not only does this inhibit scale up, it could put a stop to starting up in the first place.

According to the report, access to funding is the number one barrier listed, with ‘too big a financial risk’ being the second, showing that desire, fear and other personal responsibilities – while still important – are secondary to financial reasoning.

While funding is a barrier, this begins with lack of information and advice, even to the point of explanation around less obvious funding sources such as angel investment. More support from the very beginning would ensure they have a full understanding of the different options available, and the best one/s to suit them as entrepreneurs, as well as their enterprises’.

Although these figures are based on the business landscape in general, not specifically related to femtech itself, as women are most likely to set up femtech businesses, it gives a helpful understanding.

And it seems investors are catching on too.

According to Global Market Insights, the femtech market, which was valued at more than US$22.5 billion in 2020, is expected to grow by 16.2 per cent from 2021 to 2027, with other figures suggesting it will exceed US$60 billion within the next decade.

Funding sources

As Kevin Costner said in Field of Dreams: “Build it and they will come” – but just how true is that?

For many, the building (business creation, product development and testing) is not possible without funding, so clearly Kevin hadn’t tried launching a femtech business.

As a new business owner, the options, jargon, avenues and types of funding can be overwhelming, so it’s useful to seek advice from peers who already run established businesses to find out how they did it.

Do they have contacts who could help? Who did they secure funding through? Do they know of any business networks or support providers that can help point you in the right direction?

Online resources such as Swoop can help clear the jargon, and also list the variety of funds available for businesses at different stages.

If you’re looking for a more personal approach, get in touch with funding companies such as Nudl. They have specialist teams on hand to listen to you and your needs, identify opportunities and take you through the entire application process to make sure you’re not only applying for the right funding, but saying the right things in the process – not matter what your niche.

Want a more online experience? Try Nerdwallet for a process similar to applying for a credit card. It’s not as personal, but gives you a quick decision and often fast funds.

Angel Investment

While saying you’re looking for your angel may sound strange in a business context, they can often be the saviours you didn’t know existed.

Often high-net-worth individuals, angel investors fund start-ups at the early stages, often with their own money, and usually for businesses they have a personal or passionate connection to.

One such investor is Bérénice Magistretti with Visionaries Club. A tech journalist turned investor, she is fascinated with the femtech space and even writes a regular column for Forbes about ‘Tech That Matters’ – largely focusing on topics that include femtech and accessibility.

She has made dozens of investments from $100k to US$5 million and knows that the world isn’t going to change overnight, but great initiatives have been created to get things moving.

Bérénice is one of many angel investors ready to support businesses they believe in, and who often bring with them a wealth of experience and knowledge that can help with various parts of the business, from marketing and branding to HR and scaling up.

So, while some may wish to remain silent and simply fund a business, always consider what other support you could gain from those involved in your business.

Crowdfunding

An underrated yet growing funding source is crowdfunding – the use of small amounts of capital from a large number of individuals.

And while you could be tempted to think that relying on so many people is a risk, it is possible.

Sextech pioneer MysteryVibe reached 127 per cent of their fundraising goal from over 530 investors for their first ever campaign which will go towards new product development, research, team expansion and inventory building.

While not a start-up, this success story does demonstrate that there are people out there willing and able to support businesses that they believe in. And crowdfunding gives them the opportunity to do so – and be involved – without the need to spend significant sums that they may not have access to.

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UK reviews surrogacy firm over rejected insurance claims

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The UK government is reviewing a surrogacy firm after complaints that medical insurance claims involving surrogates in Mexico were rejected.

The Department of Health and Social Care (DHSC) is considering whether UK-based provider My Surrogacy Journey should remain listed on gov.uk as one of four domestic surrogacy agencies available to intended parents.

The review follows allegations concerning its Mexican sister company, where surrogates are based.

Health minister Diana Johnson said: “The department is looking into the allegations about My Surrogacy Journey.

“As part of that assessment, the department will consider whether it is appropriate for that company to remain on the gov.uk list of agencies.”

Emails sent by My Surrogacy Journey chief executive Michael Johnson-Ellis and seen by the Guardian suggest multiple surrogate women in Mexico had their insurance claims rejected.

The emails also suggest 300 couples using the company were moved to a new insurance provider because of the increased risk of claims being rejected.

Commercial surrogacy is banned in the UK, where only altruistic arrangements are permitted.

My Surrogacy Journey operates a not-for-profit UK branch alongside for-profit sister companies in Mexico and the US. All three companies have the same owners and chief executives.

The reported insurance issues relate to surrogacy arrangements in Mexico.

One couple told the Guardian they paid tens of thousands of pounds to cover medical costs after their surrogate had a hysterectomy during childbirth and an insurance claim was refused.

The Guardian said it understood that at least five sets of parents said they had to cover medical costs after insurance claims were rejected.

In an email to the couple whose surrogate underwent a hysterectomy, Johnson-Ellis wrote: “We have already told you that the insurance companies have been declining some of the claims and we are actively working with the broker to get this issue resolved but you should also consider that they may not be paid out and there is nothing we are able to do to change this …

“We appreciate this is not an insignificant sum but this genuinely is out of our control.”

Johnson-Ellis also said the company had switched insurance providers, writing: “We’re also managing this for 300 other journeys, which is a complex position to be in.”

Lawyers acting for My Surrogacy Journey said the company did not comment on individual cases, but that existing insurance policies were in place and claims continued to be accepted and processed.

They said the company understood that a small number of claims had been rejected and was supporting people seeking to resolve those claims with an insurer.

Under the surrogacy arrangements, intended parents are understood to be contractually required to cover medical costs not paid by an insurer.

The couple said they had been recommended the company’s Mexico option. Its website advertises that intended parents using the route can have a baby in “under 18 months”.

They said they were told the UK route could take up to five years and that the US option was much more expensive.

Lawyers for My Surrogacy Journey said prospective parents are given information about typical timelines, costs, legal frameworks and practical considerations, and that the 18-month timeframe is indicative only.

The couple said their surrogate developed placenta accreta, a serious condition in which the placenta attaches to the wall of the uterus.

Emails from Johnson-Ellis acknowledged that the insurance provider investigated the birth after the surrogate experienced health complications.

The parents are considering legal action, while the Guardian said it understood at least four other couples were reviewing their options.

Phil Brickell, MP for Bolton West, raised concerns in parliament about a separate couple who had used My Surrogacy Journey.

He said: “Two of my constituents recently travelled to Mexico, where their children were born by surrogacy.

“Those births were facilitated by a company called My Surrogacy Journey, which is listed on gov.uk.

“While in Mexico, they had repeated traumatic experiences with the company relating to issues including insurance for their children, accusations of bullying towards staff and repeated efforts to silence any constructive criticism.

“I understand that other members of this house have received similar complaints.”

Brickell called for My Surrogacy Journey to be removed from gov.uk pending a review by the Human Fertilisation and Embryology Authority.

Lawyers acting for My Surrogacy Journey said the company was communicating with DHSC and was confident any issues could be resolved.

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‘Limited scientific evidence’ for most menopause supplements, expert says

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Many menopause supplements contain ingredients with limited evidence for symptom relief, while formulations and prices vary widely, a study has found.

Researchers analysed 201 products sold by nine major UK retailers, comparing their ingredients, doses and monthly costs.

Prices ranged from £1.50 to £95 a month, while no single ingredient or category of ingredient was common across all products.

The study, carried out by University College London, found that 80 per cent of products contained herbs, 77 per cent contained vitamins and 74 per cent contained phytoestrogens, naturally occurring plant compounds found in foods including soy and flaxseed.

Vitamin B6 was the most common vitamin, while red clover and sage were the most frequently identified plant ingredients.

Researchers said more evidence was needed on the effectiveness and safety of supplements marketed for menopause symptoms.

Professor Joyce Harper, senior author of the study and professor of reproductive science at University College London, said: “The menopause supplement market is growing rapidly, despite limited scientific evidence that many of these products improve menopause symptoms.

“Some social media influencers promote these products as effective solutions, despite many claims not being supported by scientific evidence.

“This can contribute to the spread of misinformation and help drive a rapidly growing menopause supplement market, leading some women to spend substantial amounts of money on supplements in the hope of improving their symptoms and overall wellbeing.”

Half of the supplements did not contain vitamin D, while less than 24 per cent contained calcium.

The British Menopause Society and International Menopause Society have highlighted vitamin D and calcium as important for maintaining bone health and preventing osteoporosis after menopause.

Researchers also identified botanical ingredients that may carry risks, including black cohosh.

Poppy Sullivan, first author of the study, said: “Certain botanical ingredients in some menopause supplements may also have risks.

“Black cohosh, in particular, is known to carry a potential risk of liver toxicity.”

The amounts of vitamins and minerals included in different products also varied widely.

Sullivan said: “Some nutrients can have adverse effects when consumed in excess over time.

“For example, excessive vitamin D intake can theoretically lead to high calcium levels, which could cause adverse effects such as vomiting and confusion.”

The study found little empirical evidence supporting the effectiveness of even the most expensive products.

Researchers called for more high-quality research, including clinical trials, to determine whether menopause supplement ingredients are effective and safe.

They said the findings could also help healthcare professionals understand the wide variation in supplement formulations.

The researchers acknowledged that the analysis may not have included every menopause supplement available in the UK.

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Ultrasound Direct extends Trice Imaging partnership

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Ultrasound Direct has extended its Trice Imaging partnership for three years, adding a reporting tool across its 70-clinic UK network.

The private ultrasound provider will continue using the Tricefy platform for secure image storage and patient engagement, alongside TriceIQ for efficiency and productivity analytics.

It will also introduce Trice Workspace Reporting across its network. The companies say the tool will help standardise ultrasound reporting templates and workflows and reduce variation between clinics.

Ultrasound Direct carries out an estimated 120,000 patient scans each year across services including pregnancy, fertility, women’s health, men’s health and other diagnostic pathways.

Its network uses a large pool of sonographers working across different ultrasound systems and serves referral routes including self-referring patients, GPs and commercial partners.

Mike Steward, founding director at Ultrasound Direct, said: “Having worked with Trice Imaging since 2018, we first partnered to replace manual methods of providing scan images to expectant parents with Trice’s secure electronic image-sharing platform. Today, every study performed across the Ultrasound Direct Network is recorded and stored on Tricefy, while our clinical services have expanded considerably beyond pregnancy into fertility, women’s health, men’s health and other diagnostic pathways.”

He added: “To continue futureproofing our image management strategy across a network of 70 clinics, a large team of sonographers, varying ultrasound systems and a growing number of referral partners with different needs, we decided to extend with Trice Imaging. This includes the introduction of the new Trice Workspace Reporting module to help us scale and standardise our ultrasound reporting templates and workflow, reducing variability between clinics.”

The partnership began in 2018, initially focusing on replacing manual methods of sharing pregnancy scan images with expectant parents.

Johanna Wollert Melin, founder and chief executive of Trice Imaging Europe, said: “Ultrasound Direct has been a valued partner in the UK for 8 years.”

She added: “At the heart of the relationship is a willingness to explore new ideas, test new tools and the spirit to solve real challenges across a large and complex clinical network.”

Mark A. Samii, chief revenue officer at Trice Imaging, said: “We are delighted to retain and extend our relationship with Ultrasound Direct.”

He added: “The addition of Trice Workspace Reporting addresses a challenge we hear from multi-site providers globally – keeping reporting quality consistent across many users, systems, referral or payer relationships.”

Steward said Ultrasound Direct continues to see growing demand for private diagnostics alongside NHS care from self-referring patients and an increasingly diverse range of professional and commercial referral partners.

He added: “As that development continues, scalable digital infrastructure becomes increasingly important. Our focus is on ensuring that a growing national network can support consistent clinical workflows, different referral pathways and the technology requirements of the future, while continuing to provide patients with accessible diagnostic services.”

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