The recent calendared years of technological revolution have witnessed a notable uprise in innovative solutions rippled towards empowering and addressing the unique healthcare needs of women in our society. One such technological aspiration is Fem Tech. The emerging field of Fem Tech continues to gain global traction, especially in Germany, as its interests go beyond creating opportunities and groundbreaking advancements.
This article dives into the world of Fem Tech within the German market. It further provides a clear overview of its current landscape, its underlying threats/challenges, and the exciting opportunities it presents.
Fem Tech Market Overview in Germany
Frost and Sullivan consultation firm predicts that the Fem Tech industry will gunner a potential market value of $50 Billion by 2025. Nevertheless, German Fem Tech companies’ limited knowledge of women’s health issues (due to the gender data gap) confine Fem Tech to a niche market instead of giving it global exposure, overshadowing its gigantic potential. Consequentially, investors keep dragging their heels over permanent or long-term investment commitment to this technological space.
As per Oseon’s German PR agency report, 2011 witnessed two venture capital investments associated with Fem Tech across Europe, and 2021 saw twenty-two Fem Tech venture capital investments valued at 250 million Euros. Also, Fem Tech’s 2019 global funding volume for startups exceeded $590 million. According to these reported statistical data inferences, Fem Tech startups only gain from 10% of globally allocated investments. With women’s medical healthcare expenditure valued at an estimated $500 billion annually, there is an imbalance between investment priorities and the healthcare market potential of women (who account for more than half of the world’s population).
However, with a potential outreach of 49.5% of the global population, Fem Tech continues its persistence in encompassing women’s health concerns like pregnancy and maternal care, sexual health, and chronic diseases. Bio-pharmaceuticals and medical device companies like FEMNA in Berlin are cashing in on this ever-growing market potential.
Fem Tech Threats in Germany
“The investor community consists largely of men who often do not understand women’s health issues,” emphasizes Anita Haak, an account manager at Oseon German PR agency for Fem Tech.
As Anita Haak quotes, Germany faces unique challenges towards embracing and growing the Fem Tech industry. Other threats include:
1. Regulatory Challenges
While navigating the complex healthcare landscape, Fem Tech companies cannot avoid crossing paths with the ever-changing regulatory challenges. In most cases, increased Fem Tech operational costs results from direct compliance with health insurance policies, medical device regulations, and data protection laws. As Fem Tech products and services evolve to more sophisticated footprints like developing medical devices, the linked parent company must meet with regulatory bodies like FDA (Food and Drug Administration) for regulatory approval. The waiting period and expenditures incurred during these regulatory processes cripple the innovative pace needed by Fem Tech companies to bring and launch new market products.
2. Limited Funding
The gender gap in venture capital funding is a crucial issue hindering the growth of the Fem Tech industry. The Fem Tech sector continues to showcase impressive growth potential despite female-led companies having less access to funds when compared to male-led companies. According to PitchBook reports, the 2022 female-led startups only seized 2% of the total venture capital fund allocation. Therefore, scaling and developing innovative healthcare products and services through envisioned women-led Fem Tech companies is limited by funding disparity.
3. Data Privacy Concerns
Fem Tech encompasses genetic, biometric, medical, and health data. Furthermore, it presumably accommodates data associated with religious and political views, reproductive decisions, and sexual activities/orientation. As per the research of Maryam and Teresa, confidential data in fertility technologies need protection from Cyber criminals and hackers. Data leaks may lead to blackmail or harm to enrolled users on a Fem Tech program, like the 2017 case study by Paul Voigt and Axel Von dem Bussche in Maryam and Teresa’s research.
In cases where user data privacy concerns are not a threat, Fem Tech companies face the challenge of accessing critical data; for the continuity of product and service development phases. Because of such data privacy regulations, it is near impossible to improve patient outcomes. On the other hand, the accessible data may be incomplete or inaccurate due to non-standard electronic health records. Therefore, these hurdles that prevent gathering and analyzing data on a large scale make it difficult to create/develop effective Fem Tech products and services that accurately address women’s healthcare needs.
4. Lack of Diversity
The lack of diversity in Fem Tech companies is evident through the limited leadership and technical roles assigned to women in this industry. The rise of the ‘she-conomy’ acknowledges the role of women as irreplaceable caregivers, decision-makers, consumers, and healthcare professionals in the healthcare continuum. 90% of these women stand out as primary healthcare decision makers, 80% undertake household healthcare spending, 50% account for global healthcare customers, and 66% query online for healthcare information. These statistical percentages point to women as the movers and shakers of the healthcare industry and therefore deserve an undisputed role in developing and marketing potential FemTech products and services.
5. Advertising Companies
Almost all in-demand mobile applications incorporate tracking for personalized advertising. The data metrics in Fem Tech are both complex and sensitive. Therefore, a user’s Fem Tech profile loses privacy rights if tracked for personalized advertising. When advanced algorithms like Artificial Intelligence (AI) successfully incorporate into app-only data collection; through the inputs of sensor-enabled Fem Tech devices, the resulting Fem Tech data will consist of user contacts, connections and relations, and internet browsing patterns. This data is shareable with third-party digital companies like major social media platforms or may fall into the hands of data marketplaces, as pointed out in Maryam and Teresa’s research.
Fem Tech Opportunities in Germany
Despite the mentioned challenges, Fem Tech has the potential to thrive in the German market because of the following presented opportunities.
1. Advancing Diagnostic Capabilities with New Technologies
The healthcare industry continues to benefit from the rapid introduction of new and trending technological advancements, which will significantly improve access to health treatments, reduce treatment costs, better access to healthcare data, and increase patient capacity. Collaboration between Fem Tech and technologies like telemedicine, wearable devices, and artificial intelligence will improve women’s healthcare by enhancing tracking, diagnostics, and remote care. Pacesetters like DotLab and Sera Prognostics are examples of renowned clinical diagnostics companies harnessing such clinical technological advancements.
2. Growing Awareness and Reducing Stigma
Most women hesitate to confront their healthcare concerns because of societal taboos and stigma. Society classifies most women’s healthcare needs and concerns as ‘prohibited topics,’ hindering female founders from freely expressing their views. Fem Tech has a platform to reduce stigma and grow awareness of female health topics. Fem Tech initiatives like Elektra Health (addresses menopause), Rosy (for sexual wellness), and Thinx (for menstrual health) are at the forefront of growing awareness and reducing stigma regarding women’s healthcare.
3. Supportive Ecosystem
With the lucratively foreseen 2025 Fem Tech market value priced at $50 billion, startups and digital health initiatives are eyeing a piece of this pie. This revelation opens doors to government support and funding opportunities geared towards improving established Fem Tech companies and upcoming startup businesses. These companies and businesses also get the appropriate mentorship and additional resources to thrive and scale higher.
4. Research and Development
Germany’s healthcare sector roots itself in fundamental scientific research and development data. This attribute promises an unending collaborative prospect between medical experts and research institutions with an allegiance to Fem Tech. The interested companies will have access to the needed data to contribute to and progress women’s healthcare through evidence-based medical solutions. Additionally, a partnership among hospitals, clinics, and doctors enhances the associated Fem Tech products’ and services’ credibility.
Conclusion
Fem Tech has an untapped potential in perfecting women’s healthcare experiences in Germany and the rest of the world. This technology can drive a positive societal change regarding how society culturally views and addresses women’s healthcare needs. Studying and understanding the current FemTech market landscape will help stakeholders recognize manageable challenges and seize the investment opportunities that lie ahead. In the long run, an alliance between stakeholders and Fem Tech will usher in a new era of innovation, women empowerment, and improved healthcare.
