Femtech’s next frontier: From buzzword to backbone of women’s health innovation

Julien de Salaberry, CEO and Founder, Galen Growth, reflects on the findings of a new report quantifying the $360b opportunity in women’s health 

In the near decade since “Femtech” was coined, digital health ventures targeting women’s health have evolved from niche apps to a dynamic sector addressing core medical needs. 

The Galen Growth newly released Femtech 2025 report—powered by Galen Growth’s proprietary HealthTech Alpha™ platform—reveals how Femtech has matured, where critical gaps persist and what it will take for the sector to deliver on its health potential.

Despite a 3.2x growth in the number of ventures and a 15.3x surge in strategic partnerships during the last 10 years, the age-old dilemma remains: while the need is massive and the innovation landscape vibrant, Femtech still lacks structural support, clinical integration and the investment discipline needed to match its return on investment potential with lasting public health impact.

A Decade of Progress—and Ongoing Gaps

The expansion of the Femtech innovation enterprise is unmistakable. 

From fewer than 300 companies in 2015, active digital ventures in women’s health have tripled to 942 as of early 2025. 

These ventures now span gynecology, oncology, cardiovascular care, menopause, fertility, and more, recognising that women’s health is not one category, but a continuum of needs across the lifespan.

Yet, funding remains a bottleneck. 

In 2024, Femtech secured $2.2 billion in venture capital, just a fraction of the $26 billion deployed across digital health globally. 

The growth of capital deployed in Femtech has increased only 1.4x during the past decade, versus 2.6x for digital health overall. 

While that imbalance is beginning to shift—2024 saw a 32 per cent year-on-year increase in Femtech investment—the current levels are insufficient to support the sector’s scale and maturity.

Beyond Fertility: A Broader Definition of Femtech

Much of Femtech’s early visibility came from practical fertility tracking and pregnancy apps. These tools remain vital, but data show the category has expanded significantly. 

Today, gynecology and oncology dominate in volume and funding, but new frontiers like menopause, cardiovascular disease and mental health are gaining traction.

Interestingly, conditions like Alzheimer’s, autoimmune disease, and chronic pain—where women are disproportionately affected—remain underrepresented in investment portfolios. 

This represents the persistent clinical oversight and a significant commercial opportunity. “The so-called “ghost market” of women’s health, valued at hundreds of billions, is still underserved”. 

To be transformative, Femtech must address the entirety of the women’s health continuum, including those therapeutic areas that are not traditionally branded as female-specific but affect women in distinct ways.

Clinical Rigor Meets Market Expectations

One of the most revealing findings in our Q1v2025 report is the comparative strength of clinical evidence generated by Femtech ventures.

On average, they produce nearly twice the volume of peer-reviewed research, clinical trials, and regulatory filings than other digital health companies.

                         Julien de Salaberry

Why? Because Femtech ventures face higher scrutiny, not just from regulators but from the market. 

While all digital health solutions making medical claims must meet standard evidence requirements, the bar appears to be unofficially higher for women’s health offerings. 

This extra burden, if not carefully balanced, may stifle innovation. 

Still, the sector’s ability to meet those standards proves its resilience and scientific credibility.

Health Systems, Not Just Consumers

One of the more encouraging trends identified in the Galen Growth Report is the growing shift from direct-to-consumer models to deeper integration with health systems. 

In 2024, 42 per cent of all Femtech partnerships involved health systems—a marked increase from just 10 per cent  in 2020. 

This reflects a critical shift: Femtech is no longer just a convenience play but the importance of integrated new approaches into the standard of clinical care.

That evolution is essential for sustainability. 

DTC strategies alone cannot reach underserved populations or secure the reimbursement pathways necessary for scale. 

Systemic integration—through payers, providers, and public institutions—is how Femtech will bridge access gaps and embed within real-world care delivery.

Exit Signals and Market Maturity

A healthy innovation ecosystem depends not only on venture creation but also on viable exits. 

In 2024, 56 per cent of Femtech M&A activity came from venture-to-venture deals, suggesting that even amid slower funding cycles, startups are finding ways to consolidate and grow.

High-profile examples like Willow’s acquisition of Elvie and Flo Health’s $200 million Series C round underscore the market is maturing. 

These are not isolated wins—they represent a cohort of ventures achieving scale, clinical validation, and investor confidenc

Investment Trends: Signs of Momentum

Femtech’s funding trajectory reflects cautious optimism. 

After a downturn in 2023, that many in the digital health ecosystem experienced, 2024 saw a strong rebound with six mega-deals (≥$100M), including significant investments from RH Capital, General Catalyst, and The Case for Her.

The U.S. led with $1.3B in funding, while Europe experienced the fastest growth, surging 157 per cent year-on-year. 

Asia-Pacific remains an important innovation hub, especially in AI-powered diagnostics, though its funding declined slightly in 2024. 

Notably, nearly half of active Femtech ventures remain pre-Series A—indicating a broad base and a need for greater growth-stage support.

Five Forces That Will Shape Femtech

As we look ahead, five structural shifts will determine the future of Femtech:

1. Broadening the Scope: Innovation must go beyond fertility to include chronic conditions, menopause, mental health, and autoimmune diseases.
2. Breaking the DTC Barrier: Structural partnerships with health systems, employers, and insurers are key to scaling access and equity.
3. Balancing Evidence and Agility: While validation is vital, excessive requirements impede innovation. We must strike a balance.
4. Funding the Middle: Early-stage ventures need greater access to Series A and B capital to avoid stall-outs and scale successfully.
5. Smart Consolidation: M&A will continue to be a growth engine. Ventures with complementary capabilities must seize this moment to build category leaders.

Femtech Is Not a Trend—It’s an Imperative

Women’s health is not an edge case in the health system—it is foundational. 

Investing in women’s health is not a niche strategy; it’s a direct investment in societal productivity, equity, and well-being.

The growth and insights shared in Femtech 2025 reflect market awareness of evidence-based innovation, which empowers leaders across the life science, digital health, and investment communities to act decisively.

As the financial and deal trends suggest, innovators and investors should not allow another decade to pass with unmet needs hiding in plain sight. 

As this year’s global analysis demonstrates, the next generation of Femtech isn’t about visibility but value, integration and health systems impact.