It’s long been said that what happens in New York City sets trends that ripple throughout the rest of the U.S.  According to a recent report by the NYC Health Business Leaders, this pattern is holding true in the world of women’s health.

“Healthcare funding has exploded in NYC, across the country, and across the globe, over the past 18 months,” says Bunny Ellerin, co-founder and CEO of NYC Health Business Leaders (NYCHBL), authors of the study called “2022 NY Healthcare Innovation Report.” “New York City has become a center for innovative ideas and thinking around healthcare. Women’s health and digital health are really a big focus for life sciences and it's an exciting time.”

According to the February report, more women are launching companies to address women’s health issues, and those companies are earning backing from investors. Overall, the report says there is rise in new company launches, and funding flows and investor interest for all startups — but this trend is particularly true for women’s and digital health.

“In 2021, health investing in New York exploded across all sectors reaching an historic high of $9 billion with 87% of the funds going to digital health startups. This record surpasses 2020 by 150%. Mega rounds of $100 million or more comprised 60% of all funding,” the report states.

In particular, the first quarter of 2022 brought increased visibility to women founders, investors, and CEOs.

“Of the top 20 largest raises this quarter, 55% of those dollars went to businesses where women play a leading role,” it states. “These powerhouses are not only transforming the industry but also paying special attention to the issues that matter most to women.”

Ellerin calls this a “very pivotal time” for women’s health, and as smaller companies and startups start to gain traction toward initiating change, larger pharma companies, payers and incumbents should get involved — or else they could get left behind. 

Need is driving funding

The drivers behind the rise in women’s healthcare funding include more monies available, and more investment interest, especially from female investors. Consumer expectations are also changing with the newer generations entering the market. 

“Millennials and Gen Z demand more for their healthcare needs and are not going to stand for the way women’s healthcare has been ignored for so long,” the PharmaVoice 100 Ellerin says.

Another driving factor is that younger generations are more attracted to careers in finance, which helps gain supporters for funding women’s healthcare issues.

According to Kate Ryder, founder and CEO of Maven Clinic, a participant in the report, both digital health and women’s health are on the rise, and will work hand-in-hand to provide better care for women. The digital revolution will enhance healthcare by making it work more like an Amazon account, with personalization and convenience.

“As Millennials and Gen Z assume greater control over the healthcare decisions of their households, I expect this broad shift to virtual-first care to accelerate even further,” she says in the report.

“Historically, health issues that women deal with have been marginalized, and these new companies are exposing them and making it easier to find treatments and making it less of a stigma for women to seek care,” Ellerin says.  

“Women are chronically ignored by the healthcare system in the U.S., and the system also fails to take a proactive approach to health,” states Dr. Robin Berzin, founder and CEO, Parsley Health in the report. “We need a better system that puts food, lifestyle and proactive diagnostic testing on the prescription pad next to medications – so we’re treating the root cause of conditions, creating sustainable relief and fostering better overall health.”

The cofounders of Elektra Health, Alessandra Henderson and Jannine Versi, hope to “smash the menopause taboo” by empowering women through a first-of-its-kind virtual menopause community, and summed up where the future of women’s healthcare — in New York and beyond — is headed: “When we see women confidently speak to their experience with menopause without shame, and when all women seek — and receive — the care and support they deserve, we will know we have made it.”