Building a Women’s Health Startups in Canada: Trends, Challenges, and Opportunities

The Canadian healthcare landscape is changing, and women’s health is finally getting the attention it deserves. 

For years, women have faced challenges in accessing quality care. 

Many delay or skip medical visits—35% more than men—due to negative experiences or high out-of-pocket costs. 

In fact, women in the U.S. spend $15.4 billion more annually on healthcare than men.

But it’s not just about fairness. Fixing these gaps could boost the global economy by $1 trillion by 2040, according to McKinsey.

This growing focus has led to the rise of FemTech—a sector dedicated to women’s health. 

Since 2016, FemTech has expanded rapidly, with a market projected to hit $14.67 billion by 2029. 

What’s exciting is that over 70% of FemTech startups are led by women, compared to just 20% in other industries. 

Some markets, like the menopause space, could grow to $600 billion.

Here in Canada, the FemTech scene is growing fast. 

With 103 startups—like Eli, Hyivy Health, Twig Fertility, and COSM—entrepreneurs have a real opportunity to make a difference while building successful businesses. 

It’s an exciting time for innovation in women’s health.

Women’s Health Tech (Femtech): A Growing Market Full of Opportunities

The women’s health tech industry is booming, offering exciting opportunities for health-tech entrepreneurs. Let’s dive into the trends, numbers, and emerging areas that highlight its growth and potential.

Key Trends in Women’s Health Tech

1. Rising Investments:

• Since 2018, venture capital investments in women’s health have grown by 314%, outpacing overall healthcare investments.
• In 2023, the sector experienced one of its strongest funding years, showing that investors are taking notice.

2. Beyond Fertility:

• Women’s health isn’t just about fertility. In Q3 2023, $435 million was invested in non-fertility startups, proving the market is diversifying.

3. Resilience Amid Challenges:

• Even as global venture funding dropped by 27% from 2022 to 2023, women’s health tech investments grew by 5%.

4. Led by Women:

• About 76% of women’s health startups have a female founder, triple the rate in other industries.

5. Valuation Gaps:

• Early-stage women’s health companies are valued 20% lower than similar healthcare startups. This shows room for growth in how investors value the sector.

Emerging Areas in Women’s Health

Women’s health startups are tackling diverse needs across all life stages. Here are some promising areas:

• Fertility: Startups like Kindbody and Twig Fertility are offering advanced services like IVF, egg freezing, and fertility consultations.
• Menopause: Companies like Elektra Health and Womaness focus on easing menopause symptoms with digital tools and wellness products.
• Mental Health: Startups like OPTT Health are using AI to support mental health care for women.
• Reproductive Health: Platforms like Ease Healthcare provide discreet access to sexual and reproductive care.
• Pelvic Health: Innovators like Fem Therapeutics and Hyivy Health create devices for conditions like pelvic floor disorders and cancer recovery.
• Menstrual Health: Tools like Clue and Grace Health help women track their cycles while providing medical advice.
• Postpartum Care: Startups like Every Mother and Chiyo focus on recovery with tailored fitness programs and nutritional support.
• Chronic Conditions and Cancer: Companies like Niramai and Juniver are tackling breast cancer and eating disorders with AI-powered solutions.

The women’s health tech industry is growing rapidly, driven by innovation and the pressing need for better healthcare solutions. 

Opportunities for Creating Startups in Women’s Health

The women’s health sector is bursting with opportunities for startups. There are plenty of gaps in care that innovative solutions can fill. If your startup is passionate about improving women’s healthcare, here’s where you can make an impact:

1. Lack of Data and Research

Women’s health has been historically under-researched. Clinical trials often exclude women, leaving gaps in data and understanding of women-specific conditions. This leads to delayed diagnoses and ineffective treatments. Startups can step in with inclusive research and data-driven solutions.

2. Access to Care

Many women face challenges accessing healthcare, especially women of color. Negative experiences with providers or lack of affordable care can discourage them from seeking help. Startups can improve access through telehealth, culturally sensitive services, and affordable options.

3. Personalized and Convenient Care

Women’s healthcare isn’t one-size-fits-all. Startups can create personalized solutions like at-home testing kits, digital platforms, or virtual care services to make healthcare easy and accessible.

4. Holistic Care

Women need care that supports mental, emotional, and physical health. Startups offering integrated solutions for conditions like eating disorders or chronic illnesses can provide a better experience.

5. Non-Invasive Diagnostics

Invasive procedures, like surgeries for diagnosing endometriosis, can be replaced by innovative non-invasive solutions. Startups focused on advanced diagnostics can transform the patient experience.

Startups Already Leading the Way

Some inspiring startups are already making waves:

• Maven Clinic offers digital healthcare for pregnancy and postpartum care.
• Clue provides period tracking and fertility insights.
• Fem Therapeutics develops customized pelvic health devices with 3D printing.
• DotLab is revolutionizing endometriosis diagnosis with a non-invasive test.
• Flo Health uses AI to provide reproductive health insights.

These examples prove the potential to create impactful, women-centered solutions.

Challenges in Building Women’s Health Startups

The women's health sector has immense potential, but it’s not without its hurdles. Startups in this space face several challenges that can slow their growth and impact. Here are the key obstacles:

1. Struggles with Funding:

Getting funding is tough. Only a small portion of venture capital goes to women-led startups. FemTech companies, despite their potential, received just 3% of total health tech funding in 2020.

2. Limited Investor Understanding:

Many investors, often unfamiliar with women’s health issues, fail to see the market’s value. Some even dismiss it as uninteresting, which makes securing funds even harder.

3. Lower Valuations:

Women’s health startups are often undervalued compared to other health tech companies. This gap, partly due to a lack of historical data in women’s health, affects their growth potential.

4. Insurance Roadblocks:

Insurance policies are often not designed for women’s health innovations. Many startups struggle to find coverage or face high costs that limit their operations.

5. Regulatory Complexities:

Startups must navigate complex rules like HIPAA in the U.S. and PIPEDA in Canada. These ensure patient data privacy but require significant resources to maintain compliance.

6. FDA Approvals:

For startups developing medical devices, like non-invasive diagnostics, getting FDA clearance can be time-consuming and costly.

5 Simple Steps to Start a Women’s Health Startup

Thinking of starting a women’s health tech company? It’s an exciting journey with incredible potential to make a difference. Here’s a simple roadmap to help you get started:

1. Identify the Problem:

Start by finding a gap in women’s healthcare. What are the unmet needs? Areas like fertility, menopause, or chronic conditions often lack effective solutions. Focus on creating something that genuinely helps.

2. Build the Right Team:

A successful startup needs a mix of healthcare and tech expertise. Bring together healthcare professionals and tech experts to design solutions that are effective and user-friendly.

3. Design a User-Centric Solution:

Your product should be easy to use and address real challenges. Use data and science to guide your design. Consider using AI for diagnostics or personalized care—it can add a lot of value.

4. Secure Funding:

Find investors who understand the value of women’s health. Programs like the Morgan Stanley Inclusive Ventures Lab offer funding and mentorship for startups in this space.

5. Partner for Success:

Build relationships with insurers and other key players. These partnerships will help you scale your startup and reach more users.

Launching a women’s health startup takes effort, but with the right approach, you can create something that truly makes an impact.

Top Features to Include When Building a Femtech App

Creating a femtech app is an exciting opportunity to make a real difference. To ensure your app is effective and impactful, consider incorporating the following key features:

1. Personalized Insights

• Tailor recommendations to each user’s unique health profile.
• Track symptoms, predict menstrual cycles, and offer relevant resources.
• Use data-driven insights to make the app truly user-centric.

2. Secure Data Storage

• Protect sensitive user information with robust security measures.
• Ensure compliance with privacy regulations like HIPAA (U.S.) and PIPEDA (Canada).
• Build trust by prioritizing data security and privacy.

3. Community Support

• Create a platform for users to connect, share stories, and offer support.
• Foster a sense of belonging and shared experiences within the app.
• Enhance user engagement through community-driven interactions.

4. Remote Monitoring

• Enable telehealth features like virtual consultations and messaging with healthcare providers.
• Offer tools for tracking and managing health remotely.
• Improve healthcare accessibility, especially in underserved areas.

5. Cycle Tracking

• Provide tools for menstrual cycle tracking and fertility predictions.
• Offer accurate and easy-to-use insights for reproductive health.
• Make this feature a core component of the app.

6. Regulatory Compliance

• Adhere to healthcare regulations such as HIPAA and PIPEDA.
• Ensure proper handling of user data to maintain legal and ethical standards.
• Protect your business and users by following regulatory guidelines.

A well-designed, secure, and user-friendly app can help you stand out and make a lasting impact in this vital space.