"In 2021, global femtech investment peaked at before plunging to just €1.1bn the next year, amid a tech funding apocalypse and capital making a headlong dash towards AI. Several factors contributed to this decline - broader market conditions, withering investor risk appetite, and natural sector maturation. But the surge in AI funding coinciding with a plunge in femtech investment highlights serious issues with capital allocation."
"Talented founders with proven solutions for endometriosis, menopause, fertility, and maternal health are being overlooked. These are businesses that have a huge market and offer high returns - yet they struggle to compete for attention with the newest, shiniest general-purpose AI startup that comes across investors' desks. The irony is that while AI startups often draw the attention of investors by promising to predict health problems, femtech founders - who've often already diagnosed crises and built working solutions - struggle for basic funding."
Europe's growing concentration of venture capital into general-purpose AI is deprioritising women's health innovation, threatening care for half the population. Global femtech investment collapsed after a 2021 peak, falling to just €1.1bn the following year amid a tech funding crisis and a rush toward AI. Broader market downturns, reduced investor risk appetite, and sector maturation contributed, but the timing of AI's surge reveals misaligned capital allocation. Proven startups addressing endometriosis, menopause, fertility, and maternal health face funding shortages despite large markets and strong return potential. Female-led teams receive a small share of VC while male-only teams capture roughly 84% of funding, exacerbating infrastructure gaps.
Read at TNW | Ecosystems
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