Europe’s Femtech Crisis: Why Ignoring Women’s Health is a $30 Billion Mistake
While venture capital pours into the promise of artificial intelligence, a critical blind spot is emerging in Europe: women’s health. Investment in femtech – technologies focused on women’s health needs – is plummeting, threatening to leave half the population underserved and squander a projected €30 billion market opportunity by 2032. This isn’t simply a matter of missed returns; it’s a systemic failure to address a fundamental healthcare crisis.
The AI Gold Rush and the Femtech Freeze
In 2021, global femtech investment peaked at €1.89 billion. By 2022, it had fallen to just €1.1 billion, coinciding with a surge in funding for AI startups. The disparity is stark. In 2023, European femtech secured a mere €164 million out of a total €8.3 billion in healthtech funding. Across the Atlantic, US femtech companies raised a staggering €4.5 billion since 2019. This isn’t accidental. Investors, captivated by the potential of general-purpose AI, are overlooking proven solutions for conditions impacting millions of women.
A Diagnosis of the Problem: More Than Just Market Conditions
While broader economic factors play a role, the decline in femtech funding isn’t solely due to a tech funding “apocalypse.” It’s a matter of priorities. Talented founders tackling critical issues like endometriosis, menopause, fertility, and maternal health are struggling to compete for attention. The irony? These businesses often have demonstrable solutions and significant market potential, yet they’re overshadowed by the allure of the next AI breakthrough. As Dr. Jessica Shepherd, a leading gynecologist, notes, “We’re seeing incredible innovation in women’s health, but it’s consistently undervalued.”
The Human Cost of Underinvestment
The consequences of this underinvestment are profound. The average woman with endometriosis waits seven years for a diagnosis. Up to 70% of women with Polycystic Ovary Syndrome (PCOS) remain undiagnosed globally. These aren’t abstract statistics; they represent years of pain, uncertainty, and diminished quality of life. European femtech solutions aren’t just vital for the continent; they have the potential to scale and address these issues worldwide.
AI’s Promise and Peril in Women’s Health
This isn’t an anti-AI argument. Many femtech companies are leveraging AI to improve diagnostics, personalize treatment, and enhance patient care. However, general-purpose AI, built on biased datasets, can actually exacerbate existing health disparities. Research from UNESCO and UN Women highlights how AI algorithms often perpetuate male-default medical assumptions, leading to misdiagnoses and delayed treatment for women. A recent study published in Nature Medicine demonstrated the impact of biased data on AI-driven diagnostic tools.
The Funding Gap: A Systemic Issue
The disparity in funding is particularly alarming when considering the representation of female founders. In 2024, female-only founding teams – a significant proportion within femtech – received a mere 2% of global VC funding, compared to 84% for male-only teams. This isn’t just about fairness; it’s about access to expertise and understanding. Women-led teams are demonstrably better equipped to identify and address the unique challenges within the femtech space. Countries with dedicated female angel investor networks see a 27% higher early-stage funding rate for women entrepreneurs, proving that representation matters.
Reclaiming Europe’s Leadership in Femtech
Europe has historically been a leader in women’s health innovation, boasting pioneering companies like Flo Health (UK), Clue (Germany), Natural Cycles (Sweden), and Ava (Switzerland). But this leadership is at risk. To reverse the current trend, a fundamental shift in perspective is needed. Femtech isn’t a niche market; it serves 50% of the global population – a potential customer base of 3.9 billion people.
Actionable Steps for Investors and Policymakers
Investors need to balance their AI investments with proven healthcare solutions. This isn’t solely about social responsibility; it’s about unlocking a vast, underserved market. Specifically, this means establishing dedicated femtech funds and actively backing women-led investment teams. Policymakers must reform R&D funding structures to ensure women’s health receives proportional investment. When public funding overwhelmingly favors AI research, it sends a clear message that women’s health remains a secondary concern.
Europe can – and should – be a leader in both AI and femtech. These aren’t mutually exclusive goals. The choice we make now will determine whether women continue to be collateral damage in every new investment frenzy, or whether we prioritize their health and well-being. Ignoring the needs of half the population isn’t just unethical; it’s economically short-sighted. The cost of inaction – women waiting years for a diagnosis, living with untreated conditions, and experiencing preventable suffering – is a price we can’t afford to pay.
What steps do you think are most crucial to bridging the femtech funding gap? Share your insights in the comments below!
