The business of babies: Femtech sector to hit $1bn this year

Did anyone else notice a baby boom during covid, or was that just me? When scrolling through my social media feed, all I saw were friends and family having kids in lockdown. I guess it was the perfect time to start a family: when most of us were at home, even for work.

It’s not a surprise that more and more people of my generation are now starting to look into fertility. They’ve either hit that age or were motivated through lockdown. Some key things to note through an interesting article I found within femtech:

• Funding for early-stage fertility companies has tripled in four years.. Venture capital funding for businesses aimed at helping those struggling to conceive is now on track to surpass $1bn (£740m) this year. Although funding has been increasing the sector has been slow to innovate.
• Much of the capital put behind ferility start-ups so far has also focused on late-stage interventions such as IVF and egg-freezing, rather than pre-clinical and at-home treatments that could be used earlier in the conception process.
• Much of the capital put behind fertility start-ups so far has also focused on late-stage interventions such as IVF and egg-freezing, the report said, rather than pre-clinical and at-home treatments that could be used earlier in the conception process.
• Even though funding has increased, funding for the sector is still below others in healthcare. Between 2016 and 2021, $2.6bn was invested into fertility start-ups, equivalent to about a third of the $7.3bn that was invested in telemedicine in the same period. 

I can definitely see this sector shooting off within the next couple of years. According to NHS figures, around one in seven couples will have difficulty conceiving. However, the cost of fertility treatments have been an issue for patients. Fertility treatments have a reputation for high price tags. While customers can expect to spend a few hundred pounds, companies can be quick to compare this to the fast-multiplying costs of private healthcare. 

Accroding to another article, A Hertility hormone test starts at £149, with additional options such as a £100 virtual consultation with a clinician available to add on. Breathe Ilo is £222, and users can also rent a device. Béa has not yet come to market, but Ms Cosad estimates that a kit will cost £300, with a monthly subscription option. 

However, innovation of new technologies, including robotics and data analytics, could help improve success rates, which could improve the credibility and marketability of this sector. This is sector worth keeping an eye on, we for one did our first fertility deal back in 2005.