* Erica Fridman, co-founder of Sororitê, and Marina Ratton, founder and CEO of Lilit & Feel Despite being a very new niche within the ecosystem of innovation, technology and health, femtech, startups focused on development of solutions for the needs of the female universe – particularly in the health and well-being segment – come, […]
* Erica Fridmannco-founder of Sororite, and Marina Rattonfounder and CEO of Lilith & Senti
Despite being a very new niche within the ecosystem of innovation, technology and health, femtech, startups focused on developing solutions for women’s needs – especially in the health and wellness segment – are gradually gaining ground in the country. Today we have in Brazil, according to data from Report on female founders 2021, 23 companies targeting this area, which is still very small compared, for example, to the American market, where the number of femtech already exceeds 760. But, without a doubt, it is a start. It’s a promising start, especially if you take into account the interest these new businesses have aroused among female investors.
In the still predominantly male universe of startups, we have seen more and more women with financial reserves and solid professional experience willing to take on the challenge of betting on the risk market. Although, according to a survey by the Angels Brazilonly 13% of the total number of angel investors in the country are women, it is the financial contributions leveraged by them that, until now, have supported the emergence and growth of Brazilian femtechs.
To demonstrate this trend with a practical example, it is worth mentioning the to marry from feel and illuminate, brands focused on women’s sexual health and well-being. Since they were created in 2020, as many as 87% of the capital received by the two brands has come from female investors. This example, among other things, well illustrates a figure from the 2019 PitchBook report, which shows that female investors are twice as likely to invest resources in startups also founded by someone female. When this startup is led by a female CEO, the propensity goes up even more, going up to three times.
Angel investor groups are emerging in Brazil today, such as Sororitaformed exclusively by women who invest in companies founded or led by other women. With more than 80 attendees, the Sororita has already collected, in less than two years, more than 4 million reais in investments, part of which invested in femtech. Initiatives like these are key to reducing the split of gender in the Venture Capital sector, still predominantly led by men, which today, according to the Distrito platform, comprises 74% of investment funds without a single woman as founder🇧🇷
Capital from female investors has enabled more female entrepreneurs to venture into the new femtech niche, enabling more talent to develop products that focus on the needs of the women’s health and wellness journey, as these leaders understand and experience the impact of these issues on their lives, after all, this type of investment and innovation impacts health and, at the same time, the market, as these are the companies responsible for moving the economy and bringing more quality of life to women.
To accelerate this movement, however, it is necessary to attract the attention of male investors, who have not yet paid attention to the full potential that this market represents. For lack of similarity or difficulty connecting with pain, funds led by men continue to show little interest in investing in innovation and technology companies aimed at women, often leaving them aside in their portfolio strategies.
In doing so, they could miss out on great opportunities for consistent returns. This is because, in the world, the projection of the growth of femtech is very positive: according to Statista estimates, this niche could move more than 100 billion dollars by 2030. And in Brazil, where we have a predominantly female population, this market acquires particular visibility. Even more so if we take into account that in recent years, issues related to the universe of women’s health have begun to be studied in depth, placing women at the center of the development of solutions to their advantage.
Such positive prospects should not be despised. Therefore, taking into account that the femtech they are still something very new, hopefully it is only a matter of time for male investors to discover and bet on this market as well.
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Source: Terra
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
