Femtech funding: what investors want you to know in 2024

Priya Oberoi, founding general partner at Goddess Gaia Ventures

Head down and build your business, build your sales funnels, improve your margins, and figure out if you need to pivot or not. If you are early-stage there are a number of grants you can apply for.

I think it is important to focus on old fashioned profitability, who is your customer, how do I penetrate this market whilst also keeping your eye on the longer-term goals: growth trajectory and the size of your exit market.

Arianne Kidder, partner at Seae Ventures

The fundamentals of building a company in women’s health should not differ from building any other health care business. Showing early traction on solving a significant need for a patient segment, while producing outcomes for the patient and the entity that will pay for said outcomes are all important.

However, in women’s health, we know all too well the barriers to raising capital. Build relationships early and constantly iterate the pitch to ensure it speaks to as broad of an audience as possible.

Storytelling backed by dat plus maximising chances to pitch plus a bit of luck should produce opportunities for the many phenomenal founders taking on the great responsibility to build for women’s health that is still so needed.

Marissa Fayer, angel investor and entrepreneur-in-residence at GrayBella Capital

Femtech start-ups should look both inside the femtech investment world and also outside of it, into general healthcare and technology funding sources.

There is a deficit of women’s health investors, and if executives/founders/CEOs look outside the limited funding landscape of femtech, it broadens the opportunity pool of capital and also exposes other non-specific women’s health investors to the industry.

You have the ability to show investors the opportunity and the returns, which in a few short years will open the funding market up to others following you.

Mary Grove, managing partner at Bread & Butter Ventures

Hone in on your go-to-market plan and stay laser focused on execution.

Healthcare continues to be a constrained capital market, so focusing on defining your GTM and how you will test, validate, and shift gears, if needed, is super important to ensuring you have sufficient runway to hit the milestones that will allow you to raise your next round of funding.

Annie Theriault, managing partner at Cross-Border Impact Ventures

Think strategically, comprehensively and creatively about your financing strategy – look at the whole capital structure for your financing, from grants or revenue to debt and equity, and structure each of those components creatively as well.

For example, for equity, look to VCs, but leverage family offices and foundations as well. For revenues, some companies may want to jump in on joint projects or a consumer strategy.

Each start-up is different and so is each subsector of femtech (e.g. digital platforms vs. medical devices), so be really intentional, thoughtful and re-evaluate your strategy regularly.

Jessica Federer, board member at Angelini Ventures

Consider the type of investor you want to add to your cap table. VCs aren’t the only option.

Strategics, or corporate VCs, can bring different things to the table to support company growth. This also applies to the increasing number of foundations with investment arms, as well as family offices and local governments.

Poonam Malik, head of investments at the University of Strathclyde

Focus on crafting a compelling narrative that emphasises both the societal impact and financial potential of their innovations and clearly articulate how your solution addresses a pressing women’s health issue. Demonstrate a keen understanding of the industry landscape, large market size and highlight a scalable business model to reach that potential.

Engage investors by showcasing a diverse and experienced team. Ultimately, the key is to convey a powerful story that aligns passion with profitability, instilling confidence in investors about the transformative potential of your venture.

For slightly advance stage health tech start-ups with a valid clinical viable product, my advice would be to prioritise robust clinical validation. Establishing the effectiveness and safety of your solution through rigorous scientific evidence will instil confidence in investors.