The world of women’s healthcare has long been underfunded, under-researched, and underappreciated, but recent developments in FemTech are challenging that narrative. One company at the forefront of this change is Flo Health, which recently secured over $200 million in Series C funding from General Atlantic, propelling its valuation beyond $1 billion and making it the first purely digital women’s health app to achieve unicorn status(Digital Health)(OurCrowd).
While this achievement is cause for celebration in a historically neglected sector, there’s an important detail that adds a layer of complexity to Flo Health’s success story: the company was founded by men. The juxtaposition of a male-founded company raising significant funds in the women’s health space has sparked conversations around the representation—and underrepresentation—of women in FemTech.
The Rise of Flo Health
Flo Health, launched in 2015, is the most downloaded women’s health app globally, offering a range of services from period tracking to fertility support. With over 380 million downloads and 68 million active users, its rapid growth is a testament to the increasing demand for women-centric healthcare solutions(OurCrowd). This new investment not only cements Flo’s place in the FemTech industry but also highlights the growing interest from investors in digital health solutions that cater to women’s needs.
However, despite the positive headlines, Flo Health’s rise also raises questions about who controls the narrative in women’s healthcare. The fact that a male-founded company is leading the charge in this space brings to light the ongoing struggle female founders face when trying to secure funding.
The Funding Gap for Female Founders
It’s no secret that female founders, especially in the health tech and FemTech industries, face significant barriers to securing venture capital. In fact, only 2% of venture capital funding goes to women-founded start-ups(Digital Health). Flo Health’s success, while impressive, highlights the persistent inequalities in the startup world—particularly in a sector that is specifically aimed at addressing women’s needs.
Other female-led apps, such as Clue, illustrate this disparity. Despite being a leader in the space with over 12 million users, Clue, a Berlin-based period tracking app, has raised a total of $81.98 million(Clue Tracker). In contrast, Flo Health—founded by men—has raised a staggering $290 million across all funding rounds . Even with Clue’s innovative solutions like FDA-approved Clue Birth Control and a strong female leadership team, the app has struggled to secure the same level of funding as Flo. This contrast highlights the broader challenges faced by female-founded companies in FemTech.
The frustration for many in the FemTech space is clear: how can companies that don’t have women at the helm fully understand and cater to the intricacies of female health? While Flo Health employs a large number of women, including Dr. Anna Klepchukova, their Chief Medical Officer, the fact that its founders are male leaves some questioning how much influence women truly have over these solutions(Digital Health).
Why Does Representation Matter?
The question of who leads FemTech companies isn’t just symbolic; it’s a question of innovation and understanding. Female founders often approach the health sector with personal experience, offering insights and solutions rooted in real-life challenges. By contrast, male founders may lack the lived experience that could drive the development of more empathetic, nuanced, and comprehensive healthcare solutions for women.
When it comes to women’s health, which includes everything from menstrual health to fertility, menopause, and more, the voice of women should not be sidelined. The push for more female founders in FemTech is about ensuring that the people most affected by these issues have a say in developing the technologies designed to solve them.
Moving Forward: The Potential of Flo’s Funding
That said, Flo Health’s success does bring attention to the enormous potential in the women’s health space. In a sector that has historically been underfunded and underserved, Flo’s success could signal to investors the importance—and profitability—of backing women’s health ventures. It may also open the doors for other FemTech companies, many of which are female-founded, to secure the funding they need to make their mark.
With Flo’s latest injection of capital, the company plans to expand its services and deepen its role in offering personalised healthcare to women across the globe. The hope is that this investment will not only benefit Flo but also inspire more funding across the entire FemTech landscape, supporting female founders and driving innovation in women’s health(OurCrowd)(Clue Tracker).
Conclusion
The $200 million investment in Flo Health marks a significant moment for women’s healthcare. However, it also highlights the ongoing challenges of representation and funding for female founders in the FemTech industry. While the success of male-founded companies like Flo brings much-needed attention and resources to this vital sector, it’s crucial that women’s voices and experiences continue to be at the forefront of the innovation shaping the future of women’s health.
Investors have a role to play in bridging the funding gap, and hopefully, the success of Flo Health will be a catalyst for broader changes in the industry—one where women aren’t just the users but also the creators and leaders of the technologies that impact their lives.