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Femtech’s technology focused on automating, improving and scaling women-centric healthcare solutions is rapidly gaining global attention. This is especially true in the wake of the U.S. Supreme Court’s recent controversial decision around reproductive rights.
The term “femtech” has only been around since 2016, but the industry has come a long way since entrepreneur Ida Tin coined the term.according to McKinseyfemtech has a market value ranging from $500 million to $1 billion, depending on where the term applies, and forecasts a double-digit compound annual growth rate.
Recent Pitchbook estimates suggest that, 800+ companies The umbrella that belongs to femtech. Many of these companies were founded in the past few years, and multiple unicorns have taken the industry by storm.
Women’s Tech Revolution
Femtech is poised to start a real uprising that will completely disrupt the healthcare system as we know it. Even now, the company is making milestone breakthroughs in addressing stigmatized topics such as women’s sexual and menstrual health, as well as providing culturally sensitive, personalized care to marginalized populations.
The global femtech market is expected to grow to at least $10.1 billion by 2028, a compound annual growth rate of 11%.Venture capital investment in femtech startups has soared to Over $1 Billion in 2021. In addition, women’s health research is severely underfunded (Only 4% of all healthcare R&D) opens doors for continued growth, expansion and innovation.
There is considerable potential to develop breakthrough technologies that can permanently disrupt the market. Extreme consumer interest, combined with solid growth prospects and a currently underdeveloped market, creates the perfect environment for lucrative new investment opportunities and innovative startups.
The industry is on the cusp of explosive growth, so entrepreneurs still have time to step in and lead the revolution. It’s important to remember that the femtech space will continue to become more competitive, so here are five tips for successfully launching a femtech startup:
Related: Why women’s health is at the forefront of tech investing
1. Put product quality first
Your initial release doesn’t have to be flawless, but you must be open to criticism and constructive feedback to help you improve. It’s best to get working prototypes in the hands of testers that belong to your target population, so you can start collecting data on what works and what doesn’t. Even if you think you know what consumers want and what should be better, customers are often surprised by your wants and needs.
Throughout the development and implementation process, ensure you have valid, quantifiable ways to measure quality and efficacy. Combine metrics such as customer reviews, beta testing, clinical evidence, and academic research to gain a comprehensive understanding of how to improve product quality.
2. Attract an experienced team
If possible, attract qualified women to help develop the product. Having a female team not only makes your startup more attractive to consumers and investors, it also gives your business more credibility.
Remember, as a founder, it’s not your job to be “all things”. Take an honest look at your strengths and weaknesses, then look for team members with complementary strengths to build a well-rounded team of experts.
Most importantly, make sure your team has a shared vision for your product. Your product is more likely to be successful when everyone in the company points to the same goal.
3. Take all possible precautions to protect user data
Data privacy is a big concern in all industries, but is especially important for industries such as finance and medicine, where customers trust you to have extremely personal, identifiable data. Dedicating the necessary time and resources to cybersecurity and data protection is critical.
The femtech industry handles highly sensitive data, so any leak or bad PR regarding data security is a death sentence for your startup.This is especially true as women’s reproductive health has come under fire in recent months, making women care more about their privacy than ever.
Related: Getting Ready: The Potential for High ROI in the Emerging Femtech Industry
4. Have a memorable diversity
Your company needs a key differentiator compared to your competitors to make your product or service memorable. This doesn’t mean that you should spend most of your time comparing your brand to your competitors, but it does mean that you need to have a firm commitment to separating your company from the group.
Research all of your competitors’ existing products and make sure your offering is more technologically advanced or more efficient. Other successful strategies include delivering a better customer experience, finding ways to enter new markets, and maintaining a passion for continuous improvement.
5. Listen to both positive and negative feedback
A common pitfall that founders of all industries can fall victim to is turning a blind eye to the flaws in their products. When you spend a lot of time painstakingly developing your product and brand, it’s easy to overlook issues that seem small, or that are clear to people who aren’t directly involved with the product.
Throughout the development process, ask users what they need and how they want your product to work. Listen carefully to those who love your product, but also those who stop using it so you can improve. It’s hard to accept criticism of your concept of hard work, but learning this skill is essential for all successful entrepreneurs.
RELATED: Mainstreaming ‘Femtech’: Growing VC Interest as New Frontier in Women’s Health
Public awareness is at an all-time high. It’s time to act.
In previous years, femtech’s slow growth was largely due to the fact that too much women’s healthcare was locked behind stigma, taboos, and forced silence. So while there will always be a need, overcoming these barriers to adoption will not be easy.
Now, there are public sessions and accessibility talks dedicated to women’s health, including Women in Tech Forum, Fertility Innovation Summit and Reproductive Health Innovation SummitThere are also new influencers and thought leaders such as women’s health advocate Estrella Jaramillo and Madorra CEO Holly Rockweiler.
Femtech shows great promise, with consumers saying they want and need the technology now more than ever. The femtech revolution has begun, and now is the perfect time for VCs and entrepreneurs to embrace the future and find new opportunities to change the world.