Women's Health Sector Sees Record Venture Funding Amid Growing Policy Headwinds

The women's health sector experienced unprecedented growth in venture funding in 2024, reaching a record $2.6 billion. However, this surge in private investment comes against a backdrop of increasing policy challenges that threaten to impede research and innovation in the field.

Venture Funding Reaches New Heights

According to a recent report by Silicon Valley Bank, women's health startups attracted $2.6 billion in venture funding last year, up from $1.7 billion in 2023. Notably, biopharma-related investments accounted for 34% of the total, signaling a shift towards new treatments over the sector's previous focus on healthtech solutions.

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

The increased funding has expanded beyond reproductive care to encompass areas such as menopause and maternal health. One significant investment was in Comanche Bio, which raised $75 million to advance a treatment for preeclampsia, a pregnancy-related condition that can lead to complications for both mother and fetus.

Policy Challenges Threaten Progress

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

The administration's decision to withdraw federal funding from the Women's Health Initiative, one of the largest ongoing women's health studies, has raised alarms among industry leaders, investors, and researchers. Although the administration later backtracked, reports suggest that funding remains uncertain.

Additionally, the order to end diversity, equity, and inclusion (DEI) programs in federal agencies has affected research funding. The administration's policy to acknowledge only two sexes has hampered studies beyond women's health for using language deemed inappropriate under the new guidelines.

Impact on Research and Innovation

The policy shifts are having a tangible impact on both public and private sector research. A study by the National Academies of Sciences, Engineering, and Medicine found that only 8.8% of total grant funding from the National Institutes of Health between 2013 and 2023 was dedicated to women's health.

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

The cuts in government funding and changes in regulatory agencies are also affecting the private sector. Pharmaceutical companies are adjusting to layoffs and restructurings at the agencies that regulate them, potentially slowing down the development and approval of new treatments.

"I think [the headwinds] can almost be particularly pronounced in women's health, because there have been so few innovations and products that have gone through the FDA. Any sort of slowdowns or disruptions can have a really tough impact," said Sabrina Johnson, CEO of women's health-focused company Daré Biosciences.

As the field navigates these challenges, some researchers and industry leaders hope that the recent surge in private funding will help sustain innovation and support early-stage research that has been historically underfunded. However, the long-term implications of the current policy environment on women's health research and development remain uncertain.