Femtech Finance: Why Women Founders Must Fight To Find Capital

Sealing the deal is tougher for women.
Sealing the deal is tougher for women.
Kathrin Werner

MUNICH — Most investors just don't understand what it's all about — and so the scenario almost always plays out the same: Sophia Yen enters a room full of venture capitalists, almost all older men, and starts to explain to them something about a woman's period. "They find that a bit disgusting," she says. "Viagra companies, on the other hand, get five million."

The Californian doctor goes to such meetings to raise capital for her young company Pandia Health. The pitch for Pandia Health goes like this: After a quick online examination, birth-control prescriptions go out and the contraceptive is delivered to the customer's home. "No more worrying about not making it to the pharmacy in time," says Yen. "It's a huge market."

Her startup belongs in a market dubbed: Femtech, that is female technology, innovations specifically aimed at women, which are often health products for the female body. For years, startups and venture capital were dominated by men and were therefore mainly concerned with men's issues, the sector is waking up and discovering the needs of women.

Femtech was one of the themes discussed at this year's South by Southwest festival (SXSW) in Austin, Texas. And according to investor Tracy Warren, who was among the speakers in Austin, Femtech is already a $200-billion market. Warren's fund, Astarte Ventures, exclusively finances companies that concern themselves with the health and wellbeing of women and children. "It's a billion-dollar opportunity."

Graduation ceremony for FemTech in South Africa—Photo: FemTech/Facebook

For years the industry lay fallow. There are many reasons for this. One of them is that Femtech companies are often founded by women. And women found startups much less often than men. Also, once they have passed the first threshold and decide to start a business, it's much harder for women to get venture capital than for men.

Most investors are men. In 2017, start-ups run exclusively by women raised just $1.9 billion of the total $85 billion raised in venture capital — that's 2.2 %. And when it comes to such topics as menstruation, it becomes even more difficult to find some funding.

"Health products for women can be a delicate matter. You have to talk to investors without them feeling uncomfortable," Warren says. "How do you do that when a lot of men already can't handle it when the word vagina comes up?" Her advice is to argue with numbers: Market size, growth opportunities and so on. Female startup founders must also prepare themselves extremely well and should only approach investors who have already financed similar products — and keep doing it. "Frustration regarding financing kills many good companies," she adds.

We're telling them when to have sex.

Still, there are real signs of change, even among the largest venture capital firms. The fertility app Glow, by Paypal co-founder Max Levchin, has received funding in 2013 from prominent Silicon Valley investors Andreessen Horowitz and Founders Fund. The specialist for artificial insemination and other fertility services, Prelude, has raised $200 million, while Lola, a tampon subscription service, has received $11 million.

There are now companies that sell breast pumps with Bluetooth and Internet connection or tampons equipped with sensors that tell you when it is time to change it. Over the previous three years, a total of $1.1 billion in venture capital investments went to Femtech companies, the market researcher CBI had found in mid-2017.

Still, many challenges remain. Advertising for Femtech products, for example, is not easy, says Lauren Constantini. Until recently, she was head of Prima-Temp, a company that helps women with contraception or getting pregnant. Prima-Temp continuously measures the customers' body temperature and sends them an alert on their smartphone when they are most fertile. "In principle, we're telling them when to have sex," Constantini says. "This leads to surprising hurdles as far as marketing is concerned."

Google's ad service Adworks bans several words that Prima-Temp needs to explain its business model. And investors also declined as soon as they heard the idea — it sounded like a niche product to them. "It's just a female thing," she was told. "A female thing?" she replied. "We're half the population."

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Where Lockdowns For LGBTQ Meant Moving Back In With Homophobic Relatives

The confinement experience could turn brutal for those forced to live with relatives who would not tolerate a member of the family living their sexual orientation openly as a young adult. Here are stories from urban and rural India.

At a Rainbow pride walk in Kolkata, India

Sreemanti Sengupta

Abhijith had been working as a radio jockey in the southern Indian city of Thiruvananthapuram when the COVID-19 pandemic hit in March, 2020. When the government imposed a nationwide lockdown, Abhijith returned to the rural Pathanamthitta district , where his parents live with an extended family, including uncles, cousins and grandparents.

Eighteen months later, he recalled that the experience was "unbearable" because he had to live with homophobic relatives. "Apart from the frequent reference to my sexual 'abnormality', they took me to a guruji to 'cure' me," Abhijith recalled. "He gave me something to eat, which made me throw up. The guru assured me that I was throwing up whatever 'demon' was possessing me and 'making' me gay."

Early in 2021, Abhijith travelled back to Thiruvananthapuram, where he found support from the members of the queer collective.

Inspired by their work, he also decided to work towards uplifting the queer community. "I wish no one else goes through the mental trauma I have endured," said Abhijit.

Abhijith's story of mental distress arising from family abuse turns out to be all too common among members of India's LGBTQ+ community, many of whom were trapped in their homes and removed from peer support groups during the pandemic.

Oppressive home situations

As India continues to reel from a pandemic that has claimed more lives (235,524) in three months of the second wave (April-June 2021) than in the one year before that (162,960 deaths in March 2020-March 2021), the LGBTQ community has faced myriad problems. Sexual minorities have historically suffered from mainstream prejudice and the pandemic has aggravated socio-economic inequalities, instigated family and institutionalized abuse, apart from limiting access to essential care. This has resulted in acute mental distress which has overwhelmed queer support infrastructure across the country.

Speaking to queer collective representatives across India, I learned that the heightened levels of distress in the community was due to longstanding factors that were triggered under lockdown conditions. Family members who are intolerant of marginalized sexual identities, often tagging their orientation as a "disorder" or "just a phase", have always featured among the main perpetrators of subtle and overt forms of violence towards queer, trans and homosexual people.

Calls from lesbians and trans men to prevent forced marriages during lockdowns.

Sappho For Equality, a Kolkata-based feminist organization that works for the rights of sexually marginalized women and trans men, recorded a similar trend. Early in the first wave, the organization realized that the existing helpline number was getting overwhelmed with distress calls. It added a second helpline number. The comparative figures indicate a 13-fold jump in numbers: from 290 calls in April 2019-March 20 to 3,940 calls in April 2020-May 2021.

"Most of the calls we have been getting from lesbians and trans men are urgent appeals to prevent forced marriages during lockdowns," said Shreosi, a Sappho member and peer support provider. "If they happen to resist, they are either evicted or forced to flee home. But where to house them? There aren't so many shelters, and ours is at full capacity."

Shreosi says that the nature of distress calls has also changed. "Earlier people would call in for long-term help, such as professional mental health support. But during the pandemic, it has changed to immediate requests to rescue from oppressive home situations. Often, they will speak in whispers so that the parents can't hear."

Lack of spaces

Like many of his fellow queer community members, life for Sumit P., a 30-year-old gay man from Mumbai, has taken a turn for the worse. The lockdown has led to the loss of safe spaces and prolonged residence at home.

"It has been a really difficult time since the beginning of the lockdown. I am suffering from a lot of mental stress since I cannot freely express myself at home. Even while making a call, I have to check my surroundings to see if anybody is there. If I try to go out, my family demands an explanation. I feel suffocated," he said.

The pandemic has forced some queer people to come out

Sumit is also dealing with a risk that has hit the community harder than others – unemployment and income shortage. He's opened a cafe with two other queer friends, which is now running into losses. For others, pandemic-induced job losses have forced queer persons from all over the country to return to their home states and move in with their families who've turned abusive during this long period of confinement.

Lockdowns force coming out

According to Kolkata-based physician, filmmaker and gay rights activist Tirthankar Guha Thakurata, the pandemic has forced some queer people to come out, succumbing to rising discomfort and pressure exerted by homophobic families.

"In most cases, family relations sour when a person reveals their identity. But many do not flee home. They find a breathing space or 'space out' in their workspaces. In the absence of these spaces, mental problems rose significantly," he said.

Not being able to express themselves freely in front of parents who are hostile, intolerant and often address transgender persons by their deadname or misgender them has created situations of severe distress, suicidal thoughts and self-harm.

Psychiatrist and queer feminist activist Ranjita Biswas (she/they) cites an incident. A gender-nonconforming person died under suspicious circumstances just days after leaving their peer group and going home to their birth parents. The final rites were performed with them dressed in bangles and a saree.

"When a member of our community asked their mother why she chose a saree for someone who had worn androgynous clothes all their life, she plainly said it was natural because after all, the deceased 'was her daughter,'" Biswas recalls.

The Indian queer mental health support infrastructure, already compromised with historical prejudice, is now struggling

David Talukdar/ZUMA

"Correctional" therapy

In India, queer people's access to professional mental healthcare has been "very limited," according to community members such as Ankan Biswas, India's first transgender lawyer who has been working with the Human Rights Law Network in West Bengal.

"A large majority of the psychiatrists still consider homosexuality as a disorder and practice 'correctional therapy'. It's only around the big cities that some queer-friendly psychiatrists can be found," Biswas said. "The pandemic has further widened the inequalities in access to mental health support for India's LGBTQ community."

Biswas is spending anxious days fielding an overwhelming amount of calls and rescue requests from queer members trapped in their homes, undergoing mental, verbal and even physical torture. "We don't have the space, I just tell them to wait and bear it a little longer," he said.

Medical care is dismal

Anuradha Krishnan's story, though not involving birth family, outlines how the lack of physical support spaces have affected India's queer population. Abandoned by her birth family when she came out to them as a trans woman in 2017, Anuradha Krishnan (she/they), founder of Queerythm in Kerala who is studying dentistry, had to move into an accommodation with four other persons.

Isolation triggered my depression

"I am used to talking and hanging around with friends. Isolation triggered my depression and I had to seek psychiatric help." Living in cramped quarters did not help with quarantine requirements and all of them tested positive during the first wave.

What is deeply worrying is that the Indian queer mental health support infrastructure, already compromised with historical prejudice, is now struggling, placing more and more pressure on queer collectives and peer support groups whose resources are wearing thin.

During the 10 months of the first wave of the pandemic in India in 2020, Y'all, a queer collective based in Manipur, received about 1,000 distress calls on their helpline number from LGBTQ+ individuals. In May 2021 alone, they received 450 such calls (including texts and WhatsApp messages) indicating a telling escalation in the number of queer people seeking help during the second wave.

As India's queer-friendly mental health support infrastructure continues to be tested, Y'all founder, Sadam Hanjabam, a gay man, says, "Honestly, we are struggling to handle such a large number of calls, it is so overwhelming. We are also dealing with our own anxieties. We are burning out."

Sreemanti Sengupta is a freelance writer, poet, and media studies lecturer based in Kolkata.

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