We recorded this special femtech episode in partnership with our pioneer partner, Axa. Hello, my name is Ariella Dreyfuss, I am originally from England. I moved to Israel around 14 years ago and I am a partner in the M&A department of Barnea Jaffa Lande & Co. law firm. I’ve been working as a lawyer in the high-tech space for over 10 years, during which time I have represented startups, mature tech companies, VC funds, corporate ventures and private equity funds. One of my soft spots has always been MedTech and I am delighted by the recent traction and attention that FemTech is receiving.
So today I am going to speak briefly about FemTech: what it is, why I think it’s important, what are some of the early challenges, and offer you some tips.
So what is FemTech?
Let me start by saying what it isn’t: we are not talking about male or unisex products that have been shrunk in size, painted pink and remarketed for women. FemTech is essentially a palatable term for VC men to describe tech products and services in the space of female health, including periods, menopause, fertility, breastfeeding, incontinence, contraception (...).
Why is iT important that FemTech receives attention?
Because we live in a world where there is one size, and it doesn’t fit all, it fits men. I believe that the statistics are that on average, smartphones are 5.5 inches too big for women’s hands (...). Women are also hugely underrepresented in clinical trials, so drugs are designed for men (...).
Right now only 4% of tech investment in life sciences are aimed for women’s health tech solutions, so I think it is obvious that this imbalance needs to be readdressed.
What are the early challenges for male and female founders in the space?
Well, one of the main challenges is funding, and one aspect here is gender: gender of the founders, and gender of the investors. With respect to the founders, FemTech has predominantly female founders. This is largely due to personal experience (...). In other words, women identify the pain in FemTech, the problem that needs to be solved, but female founders are underfunded compared to male founders. For example, in 2018, female led startups in the US received just 2.2% of the $130 billion in VC funding that was available.
Now, with respect to the money man, a colossal 94% of decision-makers in US venture capital firms are men, and it’s difficult to raise financing from someone who does not understand the problem and is uncomfortable by the still somewhat taboo subject matter. Writers write what they know, entrepreneurs innovate what they know, and venture capitalists fund what they know.
Another challenge is the legal landscape: healthcare, which includes both digital products and medical devices is highly regulated (...).
So what are my tips?
1/ Do your homework
2/ Find the appropriate fit
3/ If you are pitching to a woman, first tell a story and wait for the nod
4/ If you are pitching to a male venture capitalist, focus on the money
5/ Emphasize the power of the female driven economy
6/ If you are developing a digital app, leverage the general trend towards digital health
7/ If you receive a snarky comment about being a women, emphasize the profitability of female leadership
8/ Don’t forget the ask
I am very happy to be part of the 50inTech community and to help empower and support women in tech. Please feel free to reach out and speak to me by the platform.
