Femtech & AI - 12.2019

Transcript

1. Femtech & AI For those interested in 2020+ Cheryl Campos
2. About the Author 2 Cheryl Campos is passionate about the intersection of finance, technology, and social impact. She is a principal at Republic, a platform spinout of AngelList helping founders raise up to $1M from anyone around the world. She is also a Venture Fellow for The Yard Ventures, the fund for Harvard alumni from Alumni Ventures Group. Cheryl started her career in finance at Barclays in the investment banking division after graduating from Harvard College with a major in economics.
3. Femtech
4. What is Femtech? • While most consider Femtech to fall under digital health, there are certain products such as intimate wearables and supplements for menstruation that do not have a digital component and fall under different categories. Femtech is a misnomer, but we’ll consider it holistically as an offshoot of healthtech focused on women • The term was coined in 2013 by Ida Tin, CEO of the period-tracking app Clue, meaning Femtech has only been considered its own segment of health for at most 6 years Femtech (“female technology”) is any product or service that improves women’s health & wellness 4
5. Femtech Potential Frost & Sullivan forecast the Femtech industry to reach $50 billion by 2025 The global economic contribution of women is expected to outpace the GDP of China and the United States by 2020 Femtech is considered “niche” even though it represents 50% of the world’s population and has the potential to disrupt every single industry with the rise of women’s purchasing power & climbing social parity of women in leadership positions 1. Source: “Femtech—Time for a Digital Revolution in the Women’s Health Market” Frost & Sullivan, 01/2018 5
6. Previously, key differences between healthcare for men and women went unnoticed, especially since the industry was (and remains) male-dominated • Women’s health only accounts for 4% of funding for healthcare products and services • It wasn’t until 2001 that the Institute of Medicine concluded that gender was an important variable for clinical trials. Doctors claimed women’s “frequent hormonal changes” could complicate their studies and excluded them Rise of Femtech – Why Now? This meant healthcare was incongruous with what happens at home of women are primary healthcare decision makers for their family 90% of household healthcare spending is done by women 80% more likely to use digital tools to track their health compared to men 75% higher on healthcare per capita spent by working- age women compared to men of same age 29% 1. Source: “Women's Healthcare Comes Out Of The Shadows: Femtech Shows The Way To Billion-Dollar Opportunities” Reenita Das, 04/2018 2. Source: “Women’s involvement in clinical trials: historical perspective and future implications” https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4800017/ 3. Source: “Femtech—Time for a Digital Revolution in the Women’s Health Market” Frost & Sullivan, 01/2018 1 2 3 6
7. Rise of Femtech – Why Now? Now there is a case to redress the imbalance, propelled by: • A reflection of the “She-Economy”*: • In the past two decades, a greater number of educated women have entered the workforce each year • Women account for almost 60% of college students, indicating that the future will likely see more qualified women in the workforce than men • The “Me-Too” movement started in 2015 • Shed light on gender bias against women, highlighted unspoken women’s issues, and generated paths forward • U.S. political landscape has been challenging • The U.S. culture shift of becoming more transparent and open of taboo topics *The term “she-economy” is inaccurate because, for the most part, women have managed the money at home and therefore the economy has been influenced by women. Here it’s only denoting women’s economic contribution to GDP. 1. Source: “Femtech Fights Gender Equality: How Do Social Determinants of Health Impact Women?” Reenita Das, 03/2019 2. Source: “Marketing to Women: Quick Facts” http://she-conomy.com/facts-on-women 1 7
8. Femtech Impact Data collection evolves empathy: • Easier for companies to use the data their users are already putting out than it is for an institution to get a study approved, conducted, and published • With this data it can also help detect trends and problems before they arise • Women are routinely gaslighted about their own pain or told by doctors that their health issues are normal.1 • Now with data collection, doctors can visually see what they don’t innately understand and begin to learn more about women’s issues Did You Know…? All facts backed by Femtech startup data collection (Clue, period tracking app + Lioness, smart vibrator) Women's hormones are different in East and West Germany There are 3 kinds of female orgasm 8 1. Source: “When Doctor Downplay Women’s Health Concerns,” https://www.nytimes.com/2018/05/03/well/live/when-doctors-downplay-womens-health-concerns.html
9. Femtech Impact 9 Potential social equalizer: “Women can only fulfill their potential and their life purpose when they have some agency over their own body and their own childbearing,” – Ida Tin • With fertility technologies, women can continue to have children later in life • Potential to break the cost barrier faced by women in developing countries, because they either endure or hide their condition or do not have the financial independence to make health decisions
10. Femtech Verticals Fertility Trying to get pregnant or avoiding Sexual Health Longevity Results of aging, menopause Pelvic & Uterine Healthcare Motherhood General Wellness Virtual clinics, mental health etc . Pregnancy 1st-3rd Trimester Menstruation 10
11. Femtech Landscape Source: “FemTech Healthcare Landscape Overview Q1 2019” Aging Analytics Agency 11 • Personalized wellness & consumer healthcare tech has been a top-5 investment area in digital health for several years now - Femtech has benefited from this drive towards personalized care delivery • No Femtech company has gone past a Series D round, which shows how it’s still a nascent industry with potential for growth
12. $100.33 $193.49 $357.43 $235.21 $375.39 $504.80 $702.00 24 25 49 51 54 53 68 2013 2014 2015 2016 2017 2018 YTD 2019 Capital Raised Company Count In the last decade, top 20 VC firms most active in healthcare made less than 1,500 investments but ONLY 80 (.5%) were in women’s health As investment in Femtech has accelerated, the company count has decreased due to larger players such as Future Family, This is L, and Nurx taking a hold of their respective verticals More VCs are noticing the industry – the top investors have been YCombinator, Arboretum Ventures, Box Group, NEA, and Founders Fund. Femtech Funding Table Data Source: Pitchbook, Femtech deal dates 2013-YTD 2019 Source: “Femtech—Time for a Digital Revolution in the Women’s Health Market” Frost & Sullivan, 01/2018 Only 20% of VC firms funding early stage biotech companies have women’s health tech represented in their portfolios at all 12
13. 2019 funding breakdown…. Me on Pitchbook conducting this research $224 $192 $97 $56 $54 $42 $26 $10 General Wellness Menstruation Pelvic & Uterine Healthcare Pregnancy Fertility Motherhood Sexual Health Longevity Areas of interest Focus of VCs + Angels Source: Pitchbook, Femtech deal dates through Dec 18, 2019 13
14. …looks a bit different from 2018 Me on Excel synthesizing the data $108 $49 $185 $23 $119 $12 $2 $8 General Wellness Menstruation Pelvic & Uterine Healthcare Pregnancy Fertility Motherhood Sexual Health Longevity Remain areas of interest Source: Pitchbook, Femtech deal dates 2018 14
15. 1 3 4 2 Marketing Barriers: • Facebook, for instance, has a hard rule against advertising sex toys, making it difficult for these companies to get their name out • Unbound / Dame Lawsuit – Suing MTA for discrimination of ads Potential Threats to Growth Gender bias in tech: • Ose, a personal vibrator, was stripped of the CES 2019 Innovation award in the robotics & drone section a month after it was awarded due to its “immoral, obscene, indecent, profane” nature • Late august, the senior director at Samsung requested that Liz Klinger, CEO of Lioness, remove the smart vibrator from display at a conference. Klinger had been invited to the event, approved to attend, and already set up her booth on the show floor Gender Bias in Funding & Finance: • Male VC's have difficulty identifying with the problem (VCs are 10% women) • Femtech founders on average have less experience as entrepreneurs and less validation • Startups can have harder times with backend operations such as opening bank accounts and selling product online Security: • People are more wary of hacking and overall privacy, especially for these personal issues • Consumers are looking out for encryption, automatic security updates, strong password requirements, an accessible privacy policy, and a way for the company to manage security vulnerabilities in its products 15
16. AI in Femtech
17. AI in Healthcare AI is disrupting Healthcare in 4 key areas: AI is machine learning that automates processes, and overtime with new information creates new rules to determine outcomes or conclusions Electronic health record (EHR) input, organization, and standardization Aggregating new datasets through smart devices, wearables, & personal devices Integrating disparate EHR datasets for pattern-matching and analysis Electronic image accuracy and identification of areas of interest • AI is powering a new generation of tools and systems that make clinicians more aware of nuances, more efficient when delivering care, and more likely to get ahead of developing problems • As we’ve established, there are certain diseases that affect women at higher rates than men, and we will see overall healthcare improvements affect women • To limit the scope for this analysis, I will focus on machine learning applied to femtech startups or startups that have the potential to overlay machine learning on top of their data aggregation 17
18. AI - General Wellness Founded: 2015 Location: San Francisco, CA Website: isonohealth.com # Employees: 4 Funding: YCombinator, National Science Foundation Developer of a breast cancer diagnosis device designed to detect breast cancer in early stages Other General Wellness Startups Medication prescription & delivery platform for women Digital health platform for booking appts w/ different types of practitioners Vitamins & supplements catered to women’s needs Founded: 2016 Location: San Francisco, CA Website: www.asktia.com # Employees: N/A Funding: Torch Capital, Define Ventures and John Doerr Originally a chatbot for personal questions to now a full brick & mortar clinic in NYC 18 Trends to note: AI analyzes image data and overall EHR for preventative measures
19. AI - Menstruation Use of user input data through apps and smart devices for dealing accurately with timing & overall health Founded: 2015 Location: Wilmington, DE Website: www.flo.health # Employees: 140 Funding: Founders Fund, Haxus, Flint Capital and Social Discovery Ventures Period tracking app that uses AI to examine mood swings, physical changes, and provide detailed analytics with recurring patterns and accurate recommendations. Other Popular Period Startups Delivering period products to your door or bathroom Period tracking apps 19
20. AI - Pelvic & Uterine Health Trends to note: Use of samples and images to aggregate and detect preventively & more accurately Founded: 2012 Location: Tel Aviv, Israel Website: www.mobileodt.com # Employees: 31 Funding: OrbiMed Develops optical diagnostic devices designed to detect cancer and other diseases affecting oral, anal and dermatological tissues Other P&U Healthcare Startups Created a pelvic floor kegel trainer Patented sensor technology designed to help individuals suffering from pelvic floor disorders 20 1 1. Source: “Automated Visual Evaluation” Yael Misrahi, 01/2019
21. AI - Fertility Trends to note: use of user input data through apps and smart devices to determine chances of fertility Founded: 2015 Location: Pleasanton, CA Website: miracare.com # Employees: 36 Funding: Launchpad Digital Health Fertility monitor that employs AI to analyze users' home fertility test kits Other Fertility Startups Providers of reproductive healthcare services intended to offer women & couples comprehensive fertility testing and support Delivering birth control conveniently 21
22. AI - Pregnancy Trend to note: Despite many AI applications in this segment, not getting as much funding as expected – more funding needed Founded: 2014 Location: Princeton, NJ Website: nuvocares.com # Employees: N/A Funding: N/A External pregnancy monitoring device that shows maternal and fetal heart rate and uterine contractions. Smart pregnancy tracker & contraction monitoring app Other Pregnancy Startups Flushable, Biodegradable Pregnancy Test 22 Device is called Invu by Nuvo
23. AI Potential Founded: 2013 Location: Berkeley, CA Website: www.lioness.io # Employees: 7 Funding: StartX Vibrator with biofeedback sensors that sense force, movement, and temperature 23 Founded: 2014 Location: Los Angeles, CA Website: www.mahmee.com # Employees: N/A Funding: ArlanWasHere, Revolution, Serena Ventures, AVG and Mark Cuban Medical platform intended to solve critical gaps by connecting the maternal health industry
24. AI in Femtech • The power of AI in Femtech stems from the data analysis and accessibility to insights that women did not have or could not have received, creating an impact on women's health and healthcare globally • The smarter AI powered apps and devices get through user input, images and samples towards diagnoses and EMR integration means they effectively begin to displace lab tests and expert exams • Example: MobileODT • In US specifically, it addresses the gynecologist shortage where majority of women who are minority and low income go completely unscreened • In emerging markets, women are more likely to lack access to any form of basic medical care • AI in Femtech also allows for startups to interpret data and predict the future • Begin to uncover trends through linking disparate data and identify ways to alleviate problems • Ability to predict products and services women didn’t think they needed but could change their life • As data continues to grow, startups will focus on new product lines and become more valuable • Gaps in AI in Femtech are motherhood, longevity, and sexual wellness, which are clear opportunities for growth • There are many startups that are more data aggregation than anything else, so it’s a matter of positioning and potential 24