Trend Report

In anticipation of our upcoming event, Invest NY: Women’s Health highlighting innovation in the women’s health and medical industries on September 16 online, check out our insights into this Tracxn trend report on the industry.

Notably, Tracxn did not include healthcare service providers or digital health solutions such as software, apps or online platforms in their analysis. However, startups and entrepreneurs innovating in digital solutions to women’s health are encouraged to participate in Invest NY: Women’s Health.

Look to the United States for investment and innovation in women’s health.

The United States leads as a geographic hotspot for innovation in women’s health.

306 out of a total of 644 companies tracked in the women’s health industry are based in the United States. Furthermore, 75% of the dollars invested in women’s health companies originated from the United States.

The top cities that host companies in women’s health are San Francisco, New York City, Boston and San Diego.

Most of the investment in women’s health goes to companies specializing in fertility and pregnancy health.

Among the top funded business models that Tracxn analyzed, business models concentrating in fertility and pregnancy health made up nearly twice as much of the list of top funded business models as those concentrating in other areas of women’s health.

Fertility and pregnancy health received the vast majority of investment dollars as well – $260M versus $63.6M for other areas of women’s health. Some of the other categories include breast cancer, urinary tract health, and uterine diseases.

Funding trends are anything but stable.

Figures for the funding stages of investment dollars have shot up and down over the past five years. In 2016, late stage investment comprised 57% of dollars invested, with early stage investments comprising 35% and seed stage 8%. Compare that to 2019, where late stage investments only accounted for 38%, early stage 52% and seed stage 9%. This reversal did not hold in 2021. So far, late stage investments made up 85% of total invested, and early stage only 10% and seed only 5%.

Most women’s health companies do not make it to late-stage. In fact, of 644 companies that Tracxn analyzed, only 58% made it from founded-to-funded. Of those, 5% made it to late stage funding. Thus far in 2021, the majority of investment dollars are going to a very small minority of companies.

Acquisitions are trending downward.

Year-over-year acquisition trends for women’s health are over the map, but a greater overall downward trend in terms of number of acquisitions and average acquisition price is dominating.

In 2017, there were 8 acquisitions of an average $488M price. The number of acquisitions rose in 2018 to 9, but at an average price of only $81.7M. There were 5 and 6 acquisitions in 2019 and 2020, respectively, at an average price of $313M and $281M. Thus far, there have been 3 acquisitions in 2020 with no figures yet for average price, but we’re betting it’ll be less than the year before.

Tracxn. (2021). Tracxn feed report: Women health.