Accelerated innovation, structured platforms, and the impact of AI in FemTech
By Maria Shmelova,
Director of Strategy and Business Development at Deep Knowledge Group
Head of FemTech Analytics
Structurization is key to the growth and development of FemTech. By creating guidelines and regulations, we can ensure the safety and efficacy of products and services, while creating a more level playing field for companies in the industry.
Platformization is revolutionizing the FemTech industry, providing companies with the tools they need to easily access and integrate with other technologies and services. With streamlined development processes, FemTech companies can bring their products to market faster and more efficiently than ever before.
Commoditization of the FemTech industry reduces the stigma around women's health by normalizing products and services related to periods, fertility, and sexual health.
The liquidity gap in the FemTech industry and how companies can utilize their revenue-generating assets to access capital, enabling them to develop new products and expand operations.
Structured financial products and hedge instruments can be a game-changer for FemTech companies to solve the problem of the liquidity gap, providing them with the capital they need to continue innovating and developing new products and services. With more sophisticated investment options, FemTech can drive growth, create more opportunities for women's health and well-being, and make an even greater impact in the industry.
Leveraging APIs to create customized solutions to integrate seamlessly with other technologies and services is a trend in FemTech. With the power of APIs at their fingertips, FemTech firms have endless possibilities to explore as they seek to push the boundaries of what's possible in this exciting and rapidly evolving industry.
The power of AI doesn’t need an introduction. From automating repetitive tasks to gaining insights into consumer behaviour, AI can streamline and optimize various aspects of your business, allowing you to focus on what really matters.
Adopting data-driven MarTech and BisDevTech solutions provides FemTech companies with an opportunity to better understand and engage their customers' needs, develop personalized marketing strategies and attain better results in their marketing efforts.
The social impact of FemTech goes beyond product innovation. FemTech companies continue to produce products and services that tackle issues like menstrual health, gender-based violence, and reproductive health.
The FemTech industry is at the forefront of revolutionizing women's health and well-being. With increased attention and investment from the public and private sectors, this industry has been identified as a promising frontier for impactful solutions. Not only does FemTech hold the potential to improve women's healthcare, but it also presents a significant market opportunity for companies to capitalize on.
Our research and analytics solutions help quickly and easily identify key trends, investments, and shifts in the market. Our latest insightful report FemTech Industry Landscape Q4 2022 provides critical insights and a clear advantage in understanding this emerging industry.
The Global MegaTrend of Structurization, Platformization, and Commoditization
Structurization refers to the process of organizing the FemTech industry into a more structured and organized framework. This involves the creation of standards and guidelines for the development and marketing of FemTech products and services, as well as the establishment of regulatory frameworks to ensure the safety and efficacy of these products. By structuring the industry in this way, we can create a more level playing field for FemTech companies, which will help to support their growth and development.
Recently, FemTech Analytics in cooperation with the Data Science Division of Deep Knowledge Group has published a new FemTech Industry Analytical Framework, constituting the most comprehensive classification system for FemTech Industry analysis to date. The framework has been published in an open-access format to better serve the needs of FemTech industry participants and decision-makers dedicated to developing technology-based products and services that cater specifically to the health needs and wellness of women.
Platformization is another important trend that we are seeing in the FemTech industry. This involves the development of platforms that allow FemTech companies to easily access and integrate with other technologies and services. For example, a FemTech company that develops a new health-tracking app could use a platform to integrate with other health-related services, such as fitness trackers or medical devices. This can help to streamline the development process and make it easier for FemTech companies to bring their products to market.
Over 40% of all FemTech companies fall into this category of platforms & apps, and this number is only expected to grow in the coming years. These digital platforms are empowering women with a plethora of tools and resources that can help them live healthier, happier lives. With features like menstrual cycle tracking, pregnancy care, and sexual health resources, these platforms are changing the game for women's health and wellness.
I am excited to announce that FemTech Analytics is building the Women Health Club Platform. This innovative platform is designed specifically with women in mind, offering a tailored Marketplace, Reward System, Fitness routines and unmatched Big Data Analytics for founders and investors.
With the release date fast approaching, don't miss your chance to subscribe to the website and be the first to experience this groundbreaking platform: www.femtech.health
In recent years, we have observed a gradual but significant shift towards commoditization within the FemTech industry. This phenomenon can be attributed to various factors, including advancements in technology, increased competition, and changing consumer behaviour.
The market has become saturated with similar products, making it increasingly hard for companies to differentiate themselves and leaving them vulnerable to risks such as declining prices and reduced profit margins. To stand out in such a crowded market, companies must leverage personalized user experiences, Big Data analytics, and Artificial Intelligence (AI) technologies.
Commoditization can stifle innovation in the industry, as companies may be less likely to invest in developing new, unique products. Instead, they may focus solely on competing on price, creating a challenge for emerging startups to gain a foothold in the industry. Commoditizing women's health care perpetuates harmful stereotypes and reinforces the notion that women's health issues are trivial.
Commoditization brings benefits such as increased affordability and accessibility to vital health services. Established tech companies, which bring significant investment power and brand recognition, may also help increase mainstream visibility for FemTech products, thus, increasing the user base.
With the rise in competition between established female-focused brands and big tech companies, the market is expected to become increasingly challenging, with only the most innovative and unique products set to succeed.
Investors looking to invest in FemTech companies must be prepared to understand the industry's complex nuances and uniquely specialize in female needs. By understanding user behaviour, investors can capitalize on the growing demand for FemTech and the products that solve problems faced by women.
FemTech companies are mostly seed and early-stage ventures. Specifically, almost 60% of all FemTech companies were seed-stage, as of December 2022. Over the last few years, 200 and more FemTech startups were founded annually.
In terms of regional funding distribution, there is a huge disparity, with the United States being the major capital flow direction in space while less than a quarter of funds go to the rest of the world.
How to Stay Competitive in the Era of Commoditization?
The FemTech industry, dedicated to meeting the unique health needs of women, has recently faced significant challenges with commoditization. To stay competitive, companies must differentiate themselves through innovation. In addition, user experience has become a crucial factor, since interactive technologies have led to higher consumer expectations. Furthermore, companies may benefit from targeting niche markets and developing products and services for underserved populations while making sure they have done sufficient clinical validation. Trust building is essential to avoid the negative consequences of commoditization, particularly with vulnerable populations, and can be enhanced through transparent communication and focus on safety and quality. It's crucial companies consider mergers and acquisitions as a way to consolidate resources and achieve a competitive edge in an increasingly crowded market. By establishing a community-led approach and collaboration, FemTech can lead to increased innovation and drive growth.
Liquidity is a crucial factor in the development and growth of any industry, including FemTech. With the rise of structurization, platformization, and commoditization in the FemTech sector, the importance of liquidity has only increased.
In the context of FemTech, liquidity refers to the ability of FemTech companies to access capital and resources to support their growth and development. This can come in the form of investments, grants, loans, or other forms of financial support. Liquidity also encompasses the ability of FemTech companies to convert their assets, such as products and services, into cash quickly and efficiently.
According to a report by Pitchbook, venture capital investment in FemTech companies has risen three times since 2019, from $820 million to a record high of $2.4 billion in 2021. This value is forecasted to reach $3 billion by the end of 2030. Despite some decrease in deal count and value in 2022, the year was marked with twenty-two M&A transactions and a number of notable FemTech funding rounds. Startups focused on holistic health, fertility, maternal health, and longevity are gaining the largest VC funding.
However, the rapid pace of innovation and the emergence of new technologies in the FemTech industry have created a liquidity gap, which can hinder the growth and development of FemTech companies. The liquidity gap refers to the mismatch between the availability of capital and the demand for it. According to a survey conducted by Rock Health, a digital health venture fund, 66% of FemTech startups reported difficulty accessing capital, with many citing a lack of understanding from investors about women's health issues as a major barrier.
According to the Rock Health Research, in H1 2022, approximately 70% of digital health investors were repeat investors in the space, whereas previous years saw more balanced distributions of new and repeat investors. In light of continued market volatility, the greater presence of veteran versus new digital health investors will remain a near-term trend.
“Funding conversations for growth-stage companies are taking on a ‘back to the basics’ sentiment. Investors are focused on unit economics.” – Sid Viswanathan, Co-Founder and CEO, Truepill
Structured Financial Products in FemTech and Liquidity Gap
The development of structured financial products and hedge instruments can also play a crucial role in supporting the growth of FemTech companies. By providing investors with more sophisticated investment options, FemTech companies can attract the capital they need to continue to innovate and develop new products and services. This, in turn, can help to drive the growth of the industry and create even more opportunities for women's health and wellbeing.
Liquidity gaps, where funding demands outstrip available capital, can lead to a lack of growth and reduced profitability, resulting in significant challenges for FemTech businesses. The risks associated with a liquidity gap include credit and operational risks, leading to additional costs and regulatory concerns. Though mitigating liquidity gap risks involves managing cash flow, ensuring available capital, and using structured financial products like securitized debt to access alternative funding sources.
To address the liquidity gap challenge, regulatory agencies enforce standards that aim to keep financial markets healthy and prevent market defaults. For example, implementing regulations on investment banking, capital adequacy requirements for banks, and monetary policies can help reduce liquidity gap risks faced by businesses and investors.
Apart from this, a report by the National Women's Business Council found that there is a growing trend of women leading high-growth firms, which often require venture capital to expand. In 2021, male-founded teams received 13,107 deals, while teams with at least one female founder received 4,215, and all-female founder teams received 1,072, according to data from PitchBook. However, despite the increase in the number of female-led firms, they receive only a small share of venture capital funding. For the first half of 2022, startups with at least one female founder received only 17.2% of venture capital, while startups founded solely by women received a meagre 2.4%.
Deep Knowledge Group’s analytical subsidiaries are pioneering powerful Big Data Analytical Systems & Dashboards that provide automated data-driven investment advice to sectors encompassing FemTech, AI-Pharma, Finance, Investment, and even Government. These dashboards leverage a vast database containing over 917,000 companies and in total 817 million data points that are updated regularly to ensure real-time accuracy of the insights they provide.
As the world of FemTech continues to evolve, venture capitalists are getting more and more interested. To promote insightful analysis and collaboration in this industry, FemTech Analytics has built a Big Data Analytics System & Dashboard that provides real-time updates about the FemTech market. It ensures that all interested parties have access to the latest information, which enables them to make well-informed decisions and build sustainable partnerships with other vital players.
Our team at FemTech Analytics is dedicated to keeping you in the loop about the latest developments and innovations in women's health technology. By subscribing to our site, you'll receive regular updates about new articles, research studies, and product launches that could make a real difference in your life. So why wait? Sign up today and don't miss a beat when it comes to the world of FemTech: https://www.femtech.health/
In today's global IT landscape, APIs are playing an increasingly critical role in driving innovation and growth across industries. The FemTech industry, in particular, is tapping into this trend by leveraging APIs to create customized solutions that integrate seamlessly with other technologies and services. With the power of APIs at their fingertips, FemTech firms have endless possibilities to explore as they seek to push the boundaries of what's possible in this exciting and rapidly evolving industry.
Revolutionize Your Growth Strategy with AI
AI has the power to streamline and optimize various aspects of your business - from marketing to customer service to financial management - allowing you to focus on what really matters: growing your business. By leveraging AI, you can automate repetitive tasks, gain insights into consumer behaviour, and personalize your offerings.
AI for Business Development
One example of AI being used for Business Development is the use of chatbots to manage customer inquiries and support. FemTech company Nurx, which offers online birth control and STI testing, uses a chatbot to provide customers with instant answers to their questions. This has helped the company to increase customer satisfaction, reduce wait times, and improve overall efficiency.
AI being used for Business Development is the use of predictive analytics to identify potential customers and target them with personalized marketing messages. This approach has been used by FemTech company Flo Health, which offers a period and ovulation tracker app. By analyzing user data, the company can identify women who may be interested in its products and services, and target them with personalized messaging that is more likely to convert.
AI for MarTech
By using AI, companies can optimize their marketing efforts, improve their targeting, and increase their conversion rates.
A great example of AI being used for MarTech is the use of natural language processing (NLP) to analyze customer feedback and sentiment.
AI for Investment Relations
Artificial intelligence has revolutionized the investor relations industry, particularly for FemTech companies. Thanks to AI technology, these companies can easily analyze data to identify potential investors, track their behaviour and preferences, and even develop personalized outreach campaigns.
At the same time, the FemTech industry is having a big social impact on women's health and well-being. By providing women with access to innovative technologies and services, FemTech is helping to address long-standing issues related to reproductive health, sexual health, and overall well-being. This has the potential to create significant positive social and economic impacts, both in developed and developing countries.
AI in R&D for Women's Longevity
Longevity represents an emerging field focused on healthy ageing. In the present years, women around the world tend to have higher average life expectancies and lifespans than men. One of the most significant factors is biology. Women have a natural advantage when it comes to longevity because they have two X chromosomes, which contain more genetic material and therefore provide a backup system in case of mutations or damage to one of the chromosomes. Additionally, women have lower levels of testosterone, which is associated with a higher risk of heart disease and other health problems. Another important factor is lifestyle as women tend to be more health-conscious than men, and they are more likely to engage in healthy behaviors. While biology and lifestyle play a significant role, social and cultural factors are also important to consider.
However, while women may live longer, they also tend to spend a greater number of years suffering from age-related diseases such as dementia, for instance.
The question of why women live longer than men and why this disparity has increased over time is a question for Longevity Science and has significant implications for Longevity Medicine.
The advancements in AI have provided critical benefits to Longevity Medicine, including the creation of ageing clocks through Deep Learning, deep analysis, and the discovery of new biomarkers and combinations of biomarkers. Longevity physicians can now evaluate the ageing rate, identify metabolic weaknesses, and estimate disease risks more accurately, such as diabetes mellitus, cardiovascular disease, and cancer.
Additionally, Longevity Science has made significant progress in identifying targetable metabolic pathways that can be corrected for rejuvenation, with several experimental drugs currently in clinical trials for extending a healthy lifespan.
I am thrilled to share the news that our director Kate Batz is channeling her passion for women's health and wellness into writing a Women Longevity Book. With Kate's extensive knowledge and insight, this book is sure to inspire and empower women of all ages to prioritize their health and longevity.
In this book, Kate will share some of her knowledge with the broader public, charting the ways in which FemTech, Female Health, and Women Longevity will come to shape the following:
The optimization of human health and performance in general;
The ongoing rise of Women Longevity and HealthTech thought-leaders (scientists, entrepreneurs, investors, and policy-makers);
Updated overviews on the present state and future potential of the global FemTech and advanced cosmetics industries;
The intersections between Women's Longevity and the Longevity Financial Industry and how female-focused approaches to health and Longevity have the potential to unleash enormous levels of untapped investment capital for the benefit of the industry as a whole;
The need for a full-lifecycle approach to optimize health, wealth, performance, Longevity, and QALY (beginning even before birth); intersections between Women's Longevity and Space Medicine.
Do not miss the release date and subscribe to Longevity Books website: www.longevity-book.com/women-longevity
Direct Social Impact of FemTech
One area of direct social impact is menstrual health. Worldwide, an estimated 1.8 billion people menstruate, yet taboos and stigma surrounding menstruation can lead to limited access to menstrual products, healthcare, and education. FemTech products such as menstrual tracking apps and period-proof clothing can revolutionize menstrual health by providing accessible and affordable solutions. The apps can track cycles, offer personalized symptom management, and even predict ovulation and fertility windows. Period-proof clothing can offer leak-proof protection without causing discomfort or irritation. These technologies empower women to manage their menstrual health effectively while reducing stigma and promoting education.
Another area of impact is reproductive health, an issue that impacts women's physical, emotional, and social well-being. Many women face exclusion from adequate reproductive health care, leading to preventable deaths due to complications during pregnancy and childbirth, sexually transmitted infections, and unsafe abortions. FemTech innovations like fertility-tracking apps can break down the barriers to access that women face, providing them with information about their reproductive health and allowing them to take control of their own bodies.
Mental health is another area where FemTech can have a significant social impact. According to the World Health Organization, women are more susceptible to mental health disorders, with depression affecting more women than men worldwide. Researchers suggest that women's social roles and societal expectations contribute to this gender-based disparity. FemTech products like relaxation and meditation apps, mental health tracking apps, and virtual therapy sessions designed specifically for women can provide much-needed support and resources for women who are managing a mental health issue.
About Deep Knowledge Group
Deep Knowledge Group is a consortium of commercial and non-profit organizations active on many fronts in the realm of DeepTech and Frontier Technologies, ranging from scientific research to investment, entrepreneurship, analytics, media, philanthropy and more. The consortium’s major projects and initiatives grew out of the initial activities of Deep Knowledge Ventures, which was active on so many fronts of high-technology and science-driven domains that it made the decision to form dedicated subsidiaries for each of the specific domains it was involved in.
Deep Knowledge Group www.dkv.global
About FemTech Analytics
FemTech Analytics is a strategic analytical agency focused on the emerging FemTech sector, providing insights into key sub-sectors such as Reproductive Health & Contraception, General Healthcare, Longevity, Mental Health, Menstrual Health, Pregnancy & Nursing, Sexual Health, Pelvic & Uterine Healthcare, Menopause Care, and Women's Wellness. FemTech Ana offers a range of services including research and in-depth analysis on the FemTech industry, profiling of companies and government agencies based on their innovation potential and business activity, and consulting and analytical services to advance the overall FemTech sector.
FemTech Analytics is part of Deep Knowledge Group, a consortium of commercial and nonprofit organizations active on many fronts in the realm of DeepTech and Frontier Technologies (AI, Longevity, FinTech, GovTech, InvestTech), ranging from scientific research to investment, entrepreneurship, analytics, media, philanthropy, and more.
FemTech Analytics www.femtech.health