Title: Venturing into Women's Health: Venture Capital's Emerging Focus
The recently unveiled WHAM Report, debuted at the J.P. Morgan Healthcare Conference, signifies a significant shift in women's healthcare. This turning point moves beyond reproductive health to encompass a vast, largely untapped market revolving around conditions uniquely, disproportionately, or differently impacting women. These conditions range from autoimmune diseases and Alzheimer's to cardiovascular diseases.
As the report highlights, women’s healthcare has emerged as a prime investment opportunity, holding the potential for economic growth and health cost savings if investment in the sector is not increased. Carolee Lee, the CEO and Founder of WHAM (Women’s Health Access Matters), shares, "This is a largely untapped market with tremendous potential for return." By fostering innovation in women’s health, significant economic and health benefits can be unlocked – not simply for women, but for everyone.
Redefining Women's Healthcare Exposes Hidden Growth Opportunities
Produced in partnership with the KPMG Foundation and KPMG, The WHAM Report reveals a shift in the definition of women's health, moving beyond the traditional focus on reproductive health to encompass a broader spectrum of conditions. A mere 5% of health conditions – menopause, ovarian cancer, and endometriosis (a market comparable to diabetes's size) – are exclusive to women.
The remaining 95% of conditions, including autoimmune diseases (80% of patients are women) and Alzheimer's disease (66% of patients are women), demonstrate a vast untapped market. Women are 50% more likely to die within the month following a heart attack, and non-smoking women are twice as likely to develop lung cancer than men, highlighting the importance of sex-differentiated healthcare. Additionally, the unaddressed needs in this sector result in an estimated $65 billion in lost earnings for women each year.
"High-growth opportunities like autoimmune, neurology, and cardio-metabolic diseases reveal a clear path for investors, focusing on women as a pivotal patient population and asking for data that reflects market realities," explains Dr. Christina Isacson, Partner at Lightstone Ventures. This allows investors to drive innovation, benefiting all while maximizing market opportunity and returns.
Women's Health Sector Primed for Soaring Growth
Decades of advocacy and increased public-private funding have ignited heightened interest in women's health, driving a significant opportunity to close existing gaps. Increased awareness makes it essential to invest in dollars, time, talent, policies, and focus to accelerate progress. "Hard can be your competitive moat" in building a healthcare company in women’s health, shares Halle Tecco, a Professor, Entrepreneur, and Investor.
Between 2018 and 2023, VC investment in women's health skyrocketed by 300%, even while only 2% of VC health investments went to women’s health. Nevertheless, this promising sector boasted four IPOs out of 35 successful exits during the same period, pointing towards its viability for high returns. Seven companies, including Hologic, Oūra, Kindbody, Maven, Progyny, Flo, and Ironwood, have surpassed unicorn status by the end of 2023. Backers like Organon, Medtronic, Cigna Healthcare, Aetna, and health systems like Northwell Health are pouring investments into this dynamic market.
The report projects the women’s healthcare market could reach $66 billion by 2033. To grasp the scope of this opportunity, the report emphasizes the necessity of estimating each specific condition's market size using a bottom-up approach.
"Markets must drive all entrepreneurs and innovators to seize the untapped potential of the women's health space," Michael Annichine, CEO of Magee-Women’s Research Institute and Foundation, asserts. "It's an imperative to invest in a sector brimming with opportunity, ready to deliver life-changing impact and substantial returns."
Investing in Women's Health: A Cooperative Effort
"No single fund can carry a company to exit," explains Dr. Alice Zheng, Partner, Foreground Capital. To succeed in women's health investment, a cooperative ecosystem is essential. The WHAM Report's 3Not30 initiative is committed to accelerating innovation and investment in women's health over the next three years.
The WHAM Investment Collaborative, a recently formed collective focused on boosting sex-based research and innovation investment, aims to unlock significant economic and health benefits – not just for women, but for everyone. Founding Members of the WHAM Investment Collaborative include Canaan Partners, Insight Partners, L Catterton, Lightstone Ventures, Morgan Health, Northpond Ventures, RA Capital, and UPMC Enterprises.
The Investment Collaborative aims to achieve the following goals:
- Doubling venture capital investment in women-owned companies from 2% to 4% by 2026, focusing on advancements in diagnostics, treatments, and prevention for women's health.
- Strengthening investor relationships and awareness to expedite the development and launch of women's health innovations.
- Publishing impactful reports and indices, such as the annual WHAM Investment Report, to track progress and highlight investment opportunities.
The WHAM Report underscores the significant return on investment in women's health – economically, socially, and in health outcomes. By capitalizing on this burgeoning market, investors can drive innovation, enhance health outcomes for women worldwide, and unlock substantial economic growth.
The WHAM Report, discussed in ForbesWomen, is encouraging investment in women's healthcare due to its untapped potential. Dr. Christina Isacson, a Partner at Lightstone Ventures, highlights that high-growth opportunities in areas like autoimmune, neurology, and cardio-metabolic diseases can significantly benefit investors by focusing on women as a crucial patient population.
With a majority of patients suffering from conditions like autoimmune diseases and Alzheimer's being women, this sector presents an immense investment opportunity. According to the report, the women's healthcare market could potentially reach $66 billion by 2033. Investors are recognizing this and are pouring funds into women's health companies such as Hologic, Oūra, Kindbody, and others, making it a promising sector for high returns.
