Women’s health care is increasingly tailored to their life stage and medical needs.
The “WHAM Report: The Business Case for Accelerating Investment in Women’s Health,” released today at the JP Morgan Healthcare Conference, reveals a paradigm shift in women’s healthcare. The report goes beyond reproductive health to highlight a vast, untapped market that includes conditions that uniquely, disproportionately or differently affect women, ranging from autoimmune diseases and Alzheimer’s to cardiovascular conditions. The growing recognition of women’s health care as a major investment opportunity highlights the potential economic growth and health cost savings if VCs do not invest. The report outlines a compelling case for investors to capitalize on this rapidly expanding market, driving innovation that addresses important unmet needs and improves health outcomes for women worldwide.
“This is a largely untapped market with tremendous payback potential,” shares Carolee Lee, CEO and Founder of WHAM (Women’s Health Access Matters). “By accelerating innovation in women’s health, we can unlock significant economic and health benefits – not just for women, but for everyone.”
Redefining women’s health care reveals a huge untapped opportunity
The WHAM report—produced in partnership with the KPMG Foundation and KPMG—reveals a significant shift in the definition of women’s health. It goes beyond the traditional focus on reproductive health to include a wider spectrum of conditions.
Surprisingly, only 5% of health conditions – menopause (projected to reach $27 billion by 2030), ovarian cancer (projected to reach $5.44 billion by 2033) and endometriosis (its market size comparable to for diabetes) – are exclusive to women.
The remaining 95% represents a vast untapped market, including conditions such as autoimmune diseases (80% of patients are women) and Alzheimer’s disease (66% of patients are women).
Other diseases affect women differently than men. Women are 50% more likely to die within a month of a heart attack, and non-smoking women are twice as likely to develop lung cancer as men, highlighting the need for sex-differentiated health care. Other factors influence the need for innovation in this space. Working women spend $15 billion more annually on health care than men, and unmet needs lead to an estimated $65 billion in lost earnings for women each year.
“High-growth opportunities such as autoimmune, neurology and cardio-metabolic diseases reveal a clear path for investors—focus on women as a key patient population and seek data that reflects market realities,” explains Dr. Christina Isaacson, Partner, Lightstone. Enterprises, in the report. “This allows us to drive win-win innovation while maximizing market opportunities and returns.”
The women’s health sector is poised for growth
The NIH Revitalization Act of 1993 was a landmark achievement in closing the gender gap in medical research. By forcing the inclusion of women in clinical trials, it ensured that medical research better reflected the needs of the entire population. Accounting for gender differences in health care research improved patient outcomes and reduced risks for patients and investors. The research laid the foundation for increased commercialization and investment in women’s health.
Increasing research studies of gender differences in health care.
A 2024 White House initiative, funded by nearly $1 billion in ARPA-H funding, is igniting a national movement to advance women’s health through research, expanded services and targeted care.
“It’s harder and more time-consuming to build a healthcare company, especially in women’s health,” describes Halle Tecco, Professor, Entrepreneur and Investor. “But I believe your competitive edge can be tough.”
Between 2018 and 2023, VC investments in women’s health increased by 300%. However, only 2% of VC investments in health went to women’s health. With four IPOs among 35 successful exits in women’s healthcare during the same period, this sector is proving its resilience for high returns.
The Current Landscape of Women’s Healthcare Venture Capital Investments.
Seven companies have achieved unicorn status by the end of 2023: Hologic, Ōura, Kindbody, Maven, Progyny, Flo and Ironwood. Investments in women’s health are on the rise, from VC to private equity. Companies like Organon, Medtronic, Cigna Healthcare, Aetna and health systems like Northwell Health are investing in this space.
Examples of success in the women’s healthcare space.
The report predicts that VC investment in the women’s healthcare market will reach $66 billion by 2033. However, to understand the full extent of the opportunity, the report suggests that market size should be assessed for each specific condition by using a bottom-up approach accurately assess potential.
“Markets must push all entrepreneurs and innovators to tap into the untapped potential of the women’s health space,” says Michael Annichine, CEO of the Magee-Womens Research Institute and Foundation. “It is a must to invest in a sector brimming with opportunity, poised to deliver transformative impact and significant returns.”
The WHAM report highlights the significant economic opportunity to invest in women’s health:
- A $350 million investment in women-focused research could yield $14 billion in financial returns.
- Doubling investment in women-focused coronary artery disease research could save $2 billion in health care costs.
- Closing the 25% gap in women’s health outcomes could add at least $1 trillion to global GDP by 2040, generating $3 in economic growth for every $1 invested.
The market for conditions that disproportionately affect women is expanding rapidly and is projected to reach $30 billion by 2030.
Investing in women’s health: A collaborative approach
“No single fund can drive a company out of business,” explains Dr. Alice Zheng, Partner, Foreground Capital. “Successful investment in women’s health requires a collaborative ecosystem.” Growing awareness and interest in women’s health, driven by decades of advocacy and increased public-private funding, presents an important opportunity to close existing gaps. Progress requires a multifaceted investment of dollars, time, talent, policies and focus.
WHAM has two collaborations—one focused on research and the other on investments—to accelerate the lab-to-market pipeline for women’s health innovation. The 3Not30 initiative is committed to accelerating research, innovation and investment in women’s health over the next three years.
WHAM’s recently formed Investment Collaborative is focused on fostering gender-based research and innovation investments. “By accelerating innovation in women’s health, we can unlock significant economic and health benefits – not just for women, but for everyone,” says Lee. “WHAM Investment Collaborative goes beyond closing the funding gap; it’s about driving solutions that will transform healthcare.” The founding members of the Investment Collaborative are Canaan Partners, Insight Partners, L Catterton, Lightstone Ventures, Morgan Health, Northpond Ventures, RA Capital and UPMC Enterprises.
The goals of investment cooperation include:
- Doubling venture capital investment in women-owned companies from 2% to 4% by 2026, targeting advances in diagnostics, treatments and prevention for women’s health.
- Strengthen investor relations and awareness to accelerate the development and launch of women’s health innovations.
- Publishing influential reports and indices, such as the annual WHAM investment report, to track progress and highlight investment opportunities.
The WHAM report illuminates the compelling financial and societal benefits of investing in women’s health, moving beyond outdated notions and embracing a holistic approach. By taking advantage of this emerging market, investors can drive innovation, improve health outcomes for women globally, and unlock significant economic growth.
