Top Women-led Healthcare Startups in 2024 Q2

Despite women accounting for 80% of the $3.6 trillion in healthcare spending, they are underrepresented in leadership positions within the industry. Only around 13% of chief executive officers in the healthcare sector are female.

However, the landscape is changing. Women-led healthcare startups are making a significant impact. A staggering statistic from 2023 underscores this shift: women-led healthtech firms secured a remarkable $167 million in funding, marking a 2000% increase from the previous year.

In exploring the top women-led healthcare startups of Q2 2024, this article delves into the prevailing trends and hurdles that female-led health startups encounter while seeking funding.

Funding Trends Among Top Women-Led Health Startups

Women-led healthcare startups have seen significant growth in funding in recent years, despite facing challenges in attracting VC compared to other sectors.

• Increasing investment: The average transaction size and the proportion of healthcare venture capital funding for women’s health firms have increased. Investments in women health companies grew 5% between 2022 and 2023, while overall health in tech funding fell 31%.
• Record-breaking funding rounds: The women’s health startups raised $1.14B collectively in 2023 across 120 deals, down from previous highs of $1.31B across 177 deals in 2021.
• Shift beyond fertility focus: There has been a recent uptick in funding for women’s health businesses with a mission wider than merely improving fertility and pregnancy experience. This points to a growing awareness of the importance of women’s health.
• Female founder advantage: A whopping 78% of women’s health enterprises were founded by women, three times greater than the entire innovation ecosystem. This gives female founders an edge in getting investment in this field.
• Diverse funding sources: Some women’s health entrepreneurs are raising funds through various channels, including venture capital, convertible notes, and partnerships with larger companies.

Funding success rates for health businesses run by women are higher in regions such as the United Kingdom, Sweden, Germany, France, and Spain than in the rest of the world. Here, female entrepreneurs have access to public-private partnerships, supportive communities, and government initiatives tailored to their specific needs. 

Challenges Women-Led Health Startups Face In Securing Funding

In 2023, According to the pitchbook report, the VC financing allocated 2% or less of the total funding for women-founded firms in Europe and the US. Due to the long-standing gender bias, the male-dominated VC industry creates a challenging environment for female leaders.

• In 2023, Only 2% of the $41.2 B women’s health represented in VC funding went to health innovators.
• Only 4% of biopharma and R&D spending goes to women-led health care. This is because most investors have long viewed women’s health care as a niche market.
• The funding dilemma in women startups gets more complicated because of an oversaturated market and limited potential for growth.
• Another factor worsening the gender gap, according to Forbes, is the shortage of female investors who can write significant checks, which makes the funding limit more unpleasant

Despite this, there are some signs that things are turning favorable to women founders. Some signals show growing recognition, like the emergence of unicorn-status women’s health companies like Maven, Carrot, and Kindbody.

The women’s health research initiative aims to engage the federal government and other sectors to fund women’s innovation. Factors like gender disparities, new legislation policies, and economic initiatives make the societies focus on addressing increased attention to women’s health.

Top Women-led Healthcare Startups in 2024 Q2

The impact of the funding trends can be witnessed in the top women-led healthcare startups and their recent funding experiences. Here’s a list of the top startups for every funding stage.

Series A Startups 

Series financing involves investing in a privately owned start-up that has already shown signs of developing its business strategy and can generate money. Let’s look at the top-funded  women-led healthcare startups at series A stage.

Function Health

Based in Los Angeles, Function Health, founded by Pranitha Patil, offers personalized health insights through regular testing. The platform, supported by top investors like Casey Means and Andreessen Horowitz, integrates seamlessly with daily life and advocates proactive health management. 

Key Investors in Function Health:

• Casey Means – Participated in the Series A financing round of $53 million.
• Jimmy Rollins – Invested $53 million in the Series A funding round.
• Harvey Spevak – Contributed to the Series A round of $53 million funding.
• Embiid Ventures – Has been a part of the $53 million Series A funding investment.
• Andreessen Horowitz – Led the $53 million Series A funding round. 

The funding will be used to improve Function Health’s platform, which will help users take charge of their health by providing individualized insights from more than 100 tests. This will enable users to manage their health proactively outside of the traditional hospital system.

Adaptilens

Adaptilens, founded by Liane Clamen, is a pre- clinical biotech company focused on revolutionizing cataract surgery through the development of an accommodating intraocular Lens(A-IOL).Recently ,Adaptilens announced the successful closing of a series A financing round ,raising $17.5$ million.

Key Investors in Adaptilens:

• Perceptive Xontogeny Venture Funds (PXV Funds) – Led the $17.5 million Series A financing round
• Pillar VC – Participated in the $17.5 million Series A round and led an earlier $1.6 million seed round
• 380 Cap – Invested in the $17.5 million Series A round
• Accanto Partners – Invested in the $17.5 million Series A round and participated in the earlier $1.6 million seed round
• MassChallenge:MassChallenge likely contributed to Adaptilens’s ability to secure subsequent funding, including a recent $17.5 million Series A financing round.

The Series A financing will support the development of Adaptilens’s Accommodating Intraocular Lens (A-IOL) through first-in-human trials, as the company aims to transform the standard of care for cataract surgery.

Amae Health

San Francisco-based Amae Health, led by Sonia Priscilla García, focuses on delivering comprehensive mental health services tailored to severe mental illnesses. Investors like Able Partners and 8VC support the startup, and it provides integrated care across behavioral medicine, primary care, and social health. 

Key investors in Amae Health:

• Able Partners – Contributed to the recent $15 million Series A funding round, focusing on innovative health solutions.
• Virtue – Participated in both the seed and the Series A funding rounds, supporting the company’s expansion and technological advancements.
• 8VC – An original seed investor, continued their support in the Series A round.
• Mike Volpi – As an individual investor, participated in the Series A round, bringing valuable tech industry insights to help scale Amae Health’s operations.
• Healthier Capital – Also supported the Series A round, investing in Amae Health’s mission to improve mental health care through technology and personalized treatment​.

This funding will help Amae Health extend its care facilities, invest in its precision medicine platform, and further its research collaborations to enhance treatment methods for severe mental illness​.

Backpack Healthcare

Backpack Healthcare, situated in Elkridge, Maryland, is dedicated to transforming mental health care for youth and families through its digital platform. Hafeezah Muhammad founded the platform in 2021. With backing from investors like Jeffrey Walker and Techstars, it simplifies access to specialized behavioral health services. 

Key investors in Backpack Healthcare:

• Jeffrey Walker – Contributed his experience in philanthropy and health innovation to the recent $14 million funding round.
• Techstars – As an accelerator, played an important role in the development and scalability of Backpack Healthcare, contributing to the recent funding.
• Collab Capital – Invested in the mission to improve mental health services, particularly supporting innovative solutions that address the needs of young demographics.
• Rethink Education – Supported the $14 million funding round, aligning with their focus on innovative educational and health solutions.
• ECMC – Participated in the recent funding, endorsing Backpack Healthcare’s approach to integrating educational and healthcare solutions.

This substantial funding will enable Backpack Healthcare to develop its health technology platform further, focusing on making mental health solutions more accessible to its target demographic.

Better Health

Better Health, founded by Naama Stauber Breckler, operates out of San Francisco. It supports individuals with chronic conditions through a peer-supported platform. Investors like Caffeinated Capital and General Catalyst have helped drive better health outcomes and reduce healthcare costs. 

Key investors in Better Health:

• Caffeinated Capital – Participated in Series A funding to enhance Better Health’s service delivery and operational scale.
• General Catalyst – A major contributor to the recent $14 million funding round, supporting expansion and technological enhancements.
• Anorak Ventures – Supported the startup’s innovative approach to healthcare supply.
• Cold Start Ventures – Contributed to the recent $14 million funding, supporting Better Health’s growth in the healthcare sector.
• at.inc/ – Invested in the recent funding round, promoting Better Health’s mission to improve access to medical supplies.

This funding will bolster Better Health’s capabilities to meet the growing demand for healthcare supplies and improve patient care through its platform.

Seed Startups

Startups often receive seed funding while just starting out when they are still in the “inception” or “ideation” stages of development. Here are the top seed startups that received funding this year.

Clarity Pediatrics

Based in San Francisco, Clarity Pediatrics, led by Christina LaMontagne, focuses on reimagining pediatric chronic care, particularly for ADHD. Supported by investors like Alumni Ventures and Maverick Ventures, the startup offers a virtual pediatric clinic that leverages technology and science to improve children’s care. 

Key investors in Clarity Pediatrics:

• Alumni Ventures – Contributed to the $10 million seed funding, supporting innovative health solutions.
• Maverick Ventures – Participated in the seed funding to help expand Clarity’s virtual care services.
• City Light Capital – Invested in the $10 million seed funding, focusing on impactful healthcare innovations.
• January Ventures – Supported the seed funding, enhancing technology-driven health solutions.
• VamosVentures – Also backed the $10 million seed funding round, promoting significant healthcare innovations.

This seed funding will boost Clarity Pediatrics’ mission to provide accessible and effective healthcare solutions through its platform.

TwoStep Therapeutics

TwoStep Therapeutics, led by CEO Caitlyn Miller, PhD, focuses on developing novel therapeutics targeting solid tumors. The startup has garnered support from Alexandria Venture Investments and NFX. 

Key investors in TwoStep Therapeutics:

• Alexandria Venture Investments – Contributed to the $6.5 million seed funding, supporting TwoStep’s focus on cancer therapeutics.
• GC&H Investments – Also participated in the seed funding, endorsing the company’s innovative approach to drug delivery.
• NFX – Led the seed funding round, aligning with their strategy of backing groundbreaking scientific ventures.
• 2048 Ventures – Invested in the seed round, aiding TwoStep’s mission to develop targeted therapies for solid tumors.

The investment will fuel the development and testing of TwoStep’s proprietary tumor-targeting technology. This technology is designed to deliver treatments specifically to the affected areas, potentially increasing efficacy while reducing side effects​.

Posterity Health

Posterity Health, headquartered in Parker, Colorado, and led by CEO Pamela Pure, is the only digital male fertility platform empowering men to understand and improve fertility outcomes proactively. Distributed Ventures and FCA Venture Partners support the startup. 

Key investors in Posterity Health:

• Distributed Ventures – Contributed to both the $6 million seed funding and the recent Series A round, supporting the expansion of Posterity Health’s digital fertility solutions.
• FCA Venture Partners – Acted as the lead investor in the latest Series A funding round, driving the company’s growth and technological development forward.
• WVV Capital – Participated in the $6 million funding, endorsing Posterity Health’s innovative approach to male fertility.
• Laurie McGraw – Supported the company as an angel investor, bringing valuable industry insight to aid its mission.
• Donald A. Holzworth – Also an angel investor, contributed to the $6 million seed funding, helping to kickstart the company’s operations and growth initiatives.

This seed funding will enable Posterity Health to expand its technological capabilities and scale its operations to serve its customers better.​

OncoveryCare

OncoveryCare, founded by Hil Moss and based in Somerville, Massachusetts, is the first virtual survivorship clinic for critical illness survivors, starting with cancer. The startup has backing from Techstars and .406 Ventures and focuses on whole-person care and community. 

Key investors in OncoveryCare:

• Techstars – Known for supporting startups through accelerators, Techstars has invested in OncoveryCare’s $4.5 million seed funding, helping it grow its virtual care model.
• Tennessee Oncology – As an investor and partner, Tennessee Oncology will enable OncoveryCare to extend its services across Tennessee, enhancing care delivery to cancer survivors.
• .406 Ventures – Led the recent seed funding round, focusing on healthtech innovations that transform care models.
• Koa Labs – Supports startups with a strong potential for impact, backing OncoveryCare’s approach to cancer survivorship.
• Oncology Ventures – Focused on innovations in cancer care, Oncology Ventures supports OncoveryCare’s mission to improve survivorship care.

This investment aims to enhance OncoveryCare’s capabilities in providing comprehensive and accessible care for cancer survivors, further innovating in oncology survivorship​.

Little Sparrows Technologies

Donna Brezinski founded Little Sparrows Technologies in Boston, Massachusetts. The company develops innovative portable phototherapy devices for treating neonatal jaundice, particularly in low-resource settings, and is supported by MassChallenge. 

Key investor in Little Sparrows Technologies:

• MassChallenge – Supported Little Sparrows Technologies with the $3 million seed funding round. MassChallenge is known for backing high-impact startups through its accelerator programs, providing the necessary resources to foster innovation and growth in healthcare technologies.

This seed funding is crucial for scaling the production and distribution of their neonatal phototherapy device, Bili Hut, which provides a vital healthcare solution for treating jaundice in newborns, thereby improving infant care standards globally.

Pre-Seed Startups

The first phase of investment a startup can get is pre-seed funding. Let’s look at the top pre-seed women-led healthcare startups that received funding in Q2 of 2024.

Lilac Software

Based in New York, Lilac Software, led by Neetu R., revolutionizes payer data analytics with its cloud-native platform. Supported by investors like Joyance Partners and AlleyCorp, Lilac automates data aggregation and normalization to deliver actionable insights swiftly. 

Key investors in Lilac:

• Joyance Partners – Supported Lilac in the  $2 million pre-seed funding round, contributing to the startup’s early-stage growth and development.
• Lorimer Ventures – Contributed to the pre-seed funding, aiding Lilac’s mission to improve health plan profitability through enhanced data analytics.
• Forum Ventures – Participated in the $2 million pre-seed funding round, emphasizing the potential of Lilac’s technology in reshaping healthcare data handling.
• AlleyCorp – Also invested in the pre-seed funding, recognizing the transformative potential of Lilac’s analytics platform.

This pre-seed funding will enable Lilac to enhance its platform capabilities. It aims to provide better analytical tools for the healthcare industry, ultimately leading to more efficient healthcare services and improved outcomes.

Dandi Fertility

Under the clinical leadership of Co-Founder Leyla Bilali, RN, Orlando-based Dandi Fertility offers personalized fertility solutions and virtual care. The startup has backing from Winklevoss Capital and the WeWork Alumni Fund and focuses on enhancing the reproductive treatment experience. 

Key investors in Dandi Fertility:

• Winklevoss Capital – Contributed to the $1.3 million pre-seed funding, supporting Dandi Fertility’s technological advancements in reproductive health.
• Ruttenberg Gordon Investments – Invested in the $1.3 million pre-seed round, aiding the development of accessible and efficient fertility solutions.
• Tiferes Ventures – Supported the $1.3 million pre-seed funding, recognizing the potential for significant impact in fertility care.
• WeWork Alumni Fund – Also participated in the $1.3 million pre-seed funding, endorsing Dandi Fertility’s vision for transforming the fertility treatment landscape.

This funding is instrumental for Dandi Fertility as it seeks to expand its services and implement cutting-edge technology to better support individuals and couples navigating fertility challenges.

Kabilah

Kabilah, founded by Sarah Raza and located in Stanford, California, employs AI to streamline nursing shift changes, replacing outdated paper reports with a digital assistant. Y Combinator supports this innovative approach. The company received $500,000 in its pre-seed funding round.

Key investor in Kabilah:

• Y Combinator – This well-known accelerator provided the $500,000 pre-seed funding, supporting Kabilah’s mission to enhance healthcare communication and workflow through innovative AI solutions.

This funding will assist Kabilah in advancing its platform, which replaces traditional paper report sheets with AI-driven patient advocates, facilitating quicker and more accurate updates on patient medical histories and ongoing treatments.

Selera Medical

Mountain View’s Selera Medical, led by CEO Stacie Arechavala, is pioneering a minimally invasive device-based treatment for heart failure. With Y Combinator’s backing, the company focuses on treating fluid overload in heart failure patients through a one-time procedure. 

Key investor in Selera Medical:

• Y Combinator – This well-known accelerator provided  $500,000 in pre-seed funding, supporting Selera Medical’s development of a device to manage fluid overload in heart failure patients through a one-time, minimally invasive procedure.

This funding is crucial for Selera Medical as it aims to improve the quality of life for heart failure patients, reduce hospitalizations, and address the inefficiencies and limitations of current treatment options.

Get Eqvista’s Expert Assistance for Your Next Funding!

Research indicates that women-led companies often receive lower valuations compared to those led by men, which can deter potential investors. By providing unbiased and thorough valuation assessments, these companies can help level the playing field and signal the true worth of women-led startups to investors. This empowerment can enhance their confidence and improve their pitching strategies.

By focusing on fair valuations, reducing bias, supporting diverse decision-making, facilitating networking, and promoting inclusive investment strategies, Eqvista can significantly enhance the support system for women-led startups.

Call our experts now to ensure fair valuations for your startups.