The women’s health market represents a massive and growing opportunity, yet it remains one of the most under-ventured sectors in healthcare. Despite women making up over half the population and accounting for the majority of healthcare spending decisions, investment in women’s health technologies and companies continues to lag. At LSI USA ’24, a panel of industry leaders, including investors and innovators, gathered to dissect why this gap persists and, more importantly, how to close it.

Defining the Women’s Health Market

Before addressing the investment challenges, the panelists established a broad and inclusive definition of women’s health.

“Women’s health is anything that impacts a woman’s well-being and ability to thrive—physically, mentally, and emotionally,” said Tara Ghazi, Co-Founder and Chief Business Officer of MALCOVA.

However, as Terri Burke, former Venture Partner at Epidarex Capital, emphasized, it’s important not to conflate women’s health solely with reproductive health, though there are, of course, significant maternal healthcare disparities. “Women’s health includes cardiovascular disease, diabetes, autoimmune diseases, and other conditions that present differently or disproportionately affect women,” she said.

From reproductive health and pregnancy monitoring to breast cancer imaging and chronic disease management, the women’s health market spans the entire continuum of care. Yet, despite the vast unmet needs, investor hesitation remains a challenge.

Why Is the Women’s Health Market Still Underfunded?

Despite recent success stories in women’s health, investment remains inconsistent. The panelists pointed to several key reasons why this space is still underfunded compared to other medtech sectors.

1. A Less-Defined Path to Exit

One of the biggest barriers to investment is an unclear exit strategy. Amrish Nair, Founder and Director of Biorithm, explained:

“In more mature medtech fields like cardio and neuro, there are clear acquisition pathways. But in women’s health, that path is a lot less clear. Who are the buyers? When do they acquire, and at what value? That uncertainty makes investors hesitant.”

Without a strong track record of high-value exits, investors remain cautious, leading to lower valuations and smaller funding rounds for women’s health startups.

2. Historical Litigation and Risk Aversion

Todd Usen, former President and CEO of Minerva Surgical, pointed out another challenge: the litigious history of certain women’s health products.

“We’ve seen lawsuits surrounding mesh, morcellation, and other gynecological devices. Investors remember those high-profile cases, and it creates a sense of risk aversion that impacts funding for new innovations.”

3. The Position of Gynecological Surgeons in the Healthcare System

Another surprising factor influencing investment is the role of gynecological surgeons within hospital systems. Usen noted:

“GYN surgeons are often lower on the pecking order in hospitals. Unlike orthopedic surgeons or neurosurgeons, they have less influence when it comes to demanding new technology. That makes it harder to drive adoption, making investors hesitant.”

4. The Gender Gap in Fundraising

Women’s health companies also face disparities in terms of who gets funded. Men-led startups in women’s health have historically raised more money than female-founded companies.

“A lot of it comes down to relationships,” said Burke. “Medtech VCs don’t consciously avoid women-led companies, but networks matter. If female founders don’t have existing relationships with investors, it’s harder to break in.”

At the same time, Holly Scott, Vice President & Partner at The Mullings Group, pointed out that women are often more hesitant to pitch themselves aggressively.

“Women tend to focus on what they don’t have—whereas men will highlight the three things they do have and say they’re qualified. That confidence gap can make a difference in fundraising.”

Building a Stronger Business Case for Women’s Health

While the hurdles are real, they are not insurmountable. The panelists shared strategies for women’s health startups to attract more investment and demonstrate their value.

1. Lead with the Business Case, Not Just the Mission

Investors don’t just want to hear about the importance of women’s health—they want to see a strong value proposition and a clear return on investment.

“Start with the data,” advised Burke. “If you can show that your solution addresses an unmet need, improves outcomes, and reduces costs, you’ll get their attention.”

For example, she cited the case of labor and delivery monitoring:

“Detecting fetal distress has the accuracy of a coin toss. That’s an investment opportunity. It’s not just about helping women—it’s about fixing a broken system.”

2. Show the Market Opportunity

Women’s health is not a niche market. In fact, between ages 19 and 54, women in the U.S. spend twice as much on healthcare as men. The total addressable market for women’s health is expected to reach nearly $70 billion by 2030.

“If I told everyone in the room that I have a company that’s focused on tissue and organ preservation, we’d be okay. Cancer identification, detection, and treatment—cool. Now, if I said it’s for the ovaries, cervix, and breast, why isn’t it still cool?” said Usen. “Maybe we have to focus in on the disease because women’s health is making decisions. So I think maybe we need to be a little more descriptive and talk about the problems that are being faced.”

3. Engage Patient Advocacy Groups

Patient advocacy organizations have played a crucial role in driving change in other areas of healthcare. Nair pointed to successful models in the UK and Australia, where advocacy groups like Tommy’s and Silverchain Foundation have effectively influenced policy and funding.

“In the United States, we have groups like the March of Dimes, but their programs aren’t as well-known among patients,” he said. “We need to engage patient advocates as active stakeholders. They can help drive awareness, influence reimbursement, and push for policy changes.”

A Call to Action for Investors and Innovators

The panelists agreed that real progress will require collaboration across investors, entrepreneurs, healthcare providers, and policymakers. Their key takeaways for driving investment in women’s health:

• Investors: Look beyond historical bias and recognize the massive market opportunity in women’s health.
• Startups: Lead with the business case and data, not just the mission. Show a clear path to ROI and exit.
• Advocacy Groups: Work with investors and entrepreneurs to highlight unmet needs and influence policy.
• Hospital Systems: Elevate women’s health specialists and push for greater adoption of innovative technologies.

The Women’s Health Market Is Poised for Growth

Momentum is shifting. Major fundraising rounds for women’s health companies are increasing, and government initiatives—including the Biden administration’s $100 million investment in women’s health research—are creating additional tailwinds.

As Terri Burke noted, “Good companies are getting financed. The market is evolving, and investors who overlook women’s health today are missing a major opportunity.”

It’s time to reshape the narrative and drive real investment into the women’s health market—because it’s not just the right thing to do. It’s smart business.

Want to hear more insights like this? Join us for our next medtech conference from March 17th-21st in Dana Point, CA.