Venture Funding in Women's Health Surges Amid Regulatory Headwinds

Women's health startups attracted record venture funding in 2024, even as the sector faces growing challenges from federal policy changes. This surge in private investment contrasts sharply with cuts to government-funded research, creating a complex landscape for innovation in women's health.

Record-Breaking Venture Investment

Venture capital firms poured $2.6 billion into women's health startups in 2024, marking the highest level of investment ever recorded in the sector, according to a report from Silicon Valley Bank. This represents a significant increase from $1.7 billion invested in 2023.

Raysa Bousleiman, vice president of life science and healthcare venture capital relationship management at SVB, noted, "Women's health has continued to grow. [Last year's total is] the highest we've ever seen."

Notably, biopharma-related investments accounted for 34% of the total funding, indicating a shift towards new treatments rather than the sector's previous focus on "healthtech" solutions. This trend reflects a growing recognition of the unique health challenges faced by women and the potential for innovative therapies.

Expanding Scope of Women's Health

The surge in funding coincides with an expanding definition of women's health. While reproductive care remains a primary focus, investors are increasingly targeting other areas such as menopause and maternal health.

Companies are also recognizing how women's health intersects with other well-known conditions. A McKinsey Health Institute report revealed that the largest pharmaceutical companies generate more than 60% of their revenue from treatments for conditions like autoimmune, heart, and bone diseases that uniquely or disproportionately affect women.

One notable funding recipient was Comanche Bio, which secured $75 million to advance a treatment for preeclampsia, a pregnancy-related condition that can lead to serious complications.

Federal Policy Challenges

Despite the influx of private capital, the women's health sector faces significant headwinds from recent changes in federal policy. The Trump administration has implemented several actions that could impede research and hamper the adoption of existing treatments.

Sabrina Johnson, CEO of women's health-focused company Daré Biosciences, warned, "The field of women's health is already underserved, so we can't really afford further slowdown."

Key challenges include:

1. Cuts to grant funding and major research studies involving the National Institutes of Health
2. Potential withdrawal of federal funding from the Women's Health Initiative
3. Restrictions on diversity, equity, and inclusion (DEI) programs in federal agencies
4. Policy changes that may conflict with FDA guidance on promoting diversity in clinical trials

These policy shifts are occurring against a backdrop of historical underinvestment in women's health research. A study by the National Academies of Sciences, Engineering, and Medicine found that only 8.8% of total NIH grant funding between 2013 and 2023 was dedicated to women's health.

Marcelle Cedars, a reproductive endocrinologist at University of California, San Francisco Health, emphasized the gravity of the situation: "We can't devote more than 9% of our research effort to taking care of 51% of the population; that's a problem."

As the women's health sector navigates these conflicting trends of increased private investment and challenging federal policies, stakeholders are calling for sustained commitment from both public and private sources to address the long-standing gaps in women's health research and treatment.