Femtech Stocks Could Become a Trillion-Dollar Industry

Key takeaways

• The femtech sector is predicted to hit as much as $1 trillion in a decade
• Obseva and Sera Prognostics are two examples of publicly listed femtech companies
• Oura and Elvie are two promising names in the industry, with the former recently valued at $2.55 billion

Women’s health, a historically underserved sub-category of healthcare, is finally having its moment with the rise of femtech. The term, first coined in 2016, represents a growing opportunity for investors to get their claws into — but there aren’t many publicly listed companies yet. Let’s get into the details.

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What is femtech?

Femtech focuses on meeting women’s health needs — think wearable rings and bracelets to track menstrual cycles, apps for helping women with their fertility and new medical developments making childbirth more straightforward and safer.

It might sound like a new buzzword, but femtech represents a massively untapped market. UK data platform FemTech Analytics says only 4% of R&D investment in the healthcare sector specifically targets women’s health. And get this — women were excluded from FDA clinical trials until 1993.

Different reports put the industry growth at different levels. FemTech Analytics said back in 2021 that the global femtech market is set to be worth $75.1 billion by 2025. Another figure is that the market size will grow to %90 billion by 2030. Non-profit organization FemTech Focus says femtech will be worth over $1 trillion by the time we hit 2027.

The numbers might differ, but they all agree that the industry is set to skyrocket — and investors should take note.

The investing opportunity with femtech companies

The femtech industry is still in its infancy, so there are relatively few listed companies to invest in. The most notable contenders are Swiss-based Obseva, which is developing treatments for endometriosis, which went public in 2017 and premature birth test developer, Sera Prognostics, listed in 2021.

Obseva announced in February it was delisting from the Nasdaq and close its US operations, while maintaining its Swiss Stock Exchange listing. Sera Prognostics is still in the Nasdaq and has seen a 164% increase in its share price since the start of 2023 to hit $3.46.

Another way to invest in the femtech industry is to play the long game and look for femtech start-ups partnering with bigger healthcare providers. One example is Mayo Clinic’s license agreement and investment in menopause start-up Lisa Health; Mayo clinic also co-founded digital prenatal and postpartum care start-up, Marani Health.

Some other notable names in the femtech space are Oura, a sleep and fertility tracker that has a partnership with Gucci, and Elvie, whose core products include pelvic floor trainers and portable breast pumps. Oura’s latest funding round valued the company at $2.55 billion, while Elvie has received over $150 million in funding.

The bottom line

Femtech is still a nascent sector, so there aren’t many opportunities to invest directly in the sector. Indirect opportunities through industries like digital health and broader healthcare stocks can provide some upside, but given femtech’s potential for growth in the next decade, it won’t be long before we see more femtech companies listing.

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