Have you heard of DeepLook Medical, a company revolutionizing mammography with precise deep-tissue imaging software? Or Butterfly IQ, the world’s first handheld, whole-body ultrasound device designed for accessibility anywhere? Or Health in Her Hue, an innovative platform connecting Black women and women of color with culturally sensitive healthcare providers?
These companies are all part of the often-undervalued field of “femtech.” During a recent panel discussion at Cure, healthcare executives and investors discussed the shifts needed to create a healthcare innovation landscape where femtech companies that benefit women can thrive.
Prioritizing basic science on women’s health
Seema Kumar, CEO of Cure, grew up in India, where she noticed that women were treated as the “lesser” of the two genders. After moving to the US, she interned at the NIH in the early nineties, when the Office of Research on Women’s Health was established, and soon after, a mandate was put in place to include women in clinical trials. Kumar also worked at the Whitehead Institute during the Human Genome Project, which was widely credited with revolutionizing medicine, yet the sequenced genome was male.
“We have done a lot of work with the Y chromosome,” Kumar pointed out, “but we have a lot of catching up to do in women’s health research. When was the last breakthrough in basic science in ob/gyn?” she asked. More investment is needed, not only in the venture capital area but also in basic research.
Broadening the definition of women’s health — and sources for funding
Despite advancements since the nineties, the focus for research and drug development has traditionally been on women’s reproductive organs to address things like breast cancer and ovarian cancer. The good news is the National Science Foundation recently announced $500 million for women’s health research, covering everything from cardiovascular issues to oncology to neuroscience.
Because diseases like Alzheimer’s, lung cancer, and cardiovascular disease affect women disproportionately, more research in those areas will almost certainly benefit women as well as men. And innovations that benefit both genders could still be considered part of women’s health initiatives.
Broader thinking about what women’s health means could open doors for further investment from the private sector. As Marissa Fayer, MBA, CEO of DeepLook Medical, points out, the current “femtech” space is so narrow that investors don’t always recognize opportunities that may be lying in plain sight.
“If we broaden that bucket beyond femtech, investment committees would find that exit comparables do exist. That might attract greater investment,” she said.
But Blair Hurst, founder and managing director of Digital Health Review, a venture studio focused on launching equitable research and companies into the market, noted that long-term funding — not tied to quick exits — is essential.
“You’re not going to fix systemic issues around healthcare outcomes and health equity on an 18-month cycle to your next raise,” said Blair Hurst. “These 10 ten-year horizons. That’s the timeframe necessary to develop innovations in healthcare that will be more equitable.”
Shattering the mold of what founders look like
“There’s a lot of pattern-matching in the investment ecosystem,” said Hurst. “We need to seek out innovative leaders who are driving change in ways that matter but may not look like traditional startup founders.”
Case in point: In the US, black women make up about 10 percent of the population, yet between 2017 and 2020, they founded 20 percent of new businesses. There are advantages to looking to academia for investment opportunities, Hurst noted, but don’t underestimate the potential of founders who have “lived experience” and are starting companies to address the problems they see in their communities, such as post-partum depression and the need for caregivers who understand cultural nuances.
“We need to put an innovation challenge out there,” suggested Kumar. “Let’s ask entrepreneurs to come forward so we can invest in those ideas. Because ideas come from where problems exist.”
Breaking silos and opening doors for women leaders
Better collaboration across academia, investment, and the private sector is necessary to surface the best ideas and support them throughout business growth. Investors looking for the next big thing may not realize that the solution is in a lab, and researchers sitting on that next big thing may not know how to bring their discovery to market.
As Fayer pointed out, not every founder or scientist has the skill set to run a company. “You can have something groundbreaking, but without the right leadership, it’s not going anywhere.”
She further underscored the need for female-led companies and better resources for women in business to become leaders. As a brought-in CEO herself, Fayer noted, “First and foremost, we need to have a supportive environment for women to grow so they can lead these companies.”
Hurst added that diverse boards, especially those that include women, have been proven to deliver higher returns. “So be greedy, people, and stack your boards with women because a diverse board is going to give you higher returns.”
Garnering support of male ambassadors
By some assessments, 100 percent of the population is impacted by women’s health. That’s why men must be part of the solution. Ricky Mehra, partner at Contiuum Health Ventures, an early stage venture capital fund focused on improving human healthspan, stated that more than 50 percent of his firm’s portfolio comprises companies founded and led by women. Fayer commended him for this but noted that without a mandate to invest in women, most venture firms and institutions do not expressly set out to do so. “We need more focus on it,” she said.
Kumar wrapped up the conversation by recalling that Eric Lander, PhD, one of the leaders behind the Human Genome Project, used to say that men and women are 99.99 percent the same at the genetic level. “While sometimes, women may want to send men to Mars,” joked Kumar, “we are one human race, and we need to take care of each other.”