Femtech startups nearly double funding dollars from last year, but still make up small percent of market

Women+ funding still only accounts for 7% of the total U.S. digital health deals through August 2021, according to Rock Health.

Digital health startups in the U.S. serving women and other people with female biology raised $1.3 billion through August 2021, nearly doubling 2020’s full-year total of $774 million, according to a new report by Rock Health. 

Rock Health is calling this market segment women+ health, describing tools that relate to cisgender women’s health needs as well as the needs of transgender and nonbinary people who may access similar care.

Although 2021’s $1.3 billion is the most funding dollars recorded in the women+ space, it still only makes up 5% of digital health funding overall since Rock Health began tracking in 2011. So far, women+ funding accounts for 7% of this year’s digital health deals, below the record of 11% in 2019.

The pregnancy, postpartum and parenthood sector still dominates new companies founded in the past five years, historically a large area of focus for women’s digital health. Rock’s report notes that’s a limitation in the space.