- Record funding in healthtech women-led startups sets agenda for founders
- African women-led healthtech companies saw significant increase in funding in 2023
- Maisha Meds, Kasha, Dawi Clinics, and Chefaa raised $52 million, leading to 2,000% funding growth
- Kasha’s $21 million Series B funding was the largest ever in a woman-led health tech company in Africa
- Women-led startups raised just above $200 million in 2023, marking a +7% growth from the previous year
Women-Led Healthtech Startups Making Strides in Funding Landscape
Record Funding for Women-Led Healthtech Startups
In a groundbreaking shift within the tech startup ecosystem, women-led healthtech companies have begun to emerge from the shadows of underfunding, setting a new agenda for founders in the industry. Recent data from a report by Salient Advisory has highlighted a significant increase in funding for women-led tech startups, particularly in the healthtech sector. The report revealed that female founders raised an impressive 31% of the total funding in the industry, marking a notable milestone in the traditionally male-dominated tech landscape.
Impressive Growth in Funding for African Women-Led Healthtech Companies
The surge in funding for women-led healthtech startups is particularly evident in Africa, where companies like Kasha in Rwanda, Maisha Meds in Kenya, and Dawi Clinics and Chefaa in Egypt collectively raised a staggering $52 million across 33 deals. This marked a remarkable 2,000% increase in funding to women-led companies within Africa’s healthtech industry. Jessica Vernon, CEO of Maisha Meds, attributed their success to a unique business model that focuses on leveraging technology to enhance accessibility and efficiency in healthcare delivery.
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The report by Salient Advisory highlighted that in 2022, women-led healthcare companies only secured $2 million across 26 deals, representing a mere 1.4% of total healthtech funding. However, the landscape significantly shifted in 2023, with Kasha’s $21 million Series B funding standing out as the largest investment ever made in a woman-led health tech company in Africa. Moreover, funding to mixed-gender founding teams also saw a notable increase, rising to 21% in 2023 from 10% in the previous year.
Role of Development Institutions in Funding Women-Led Healthtech Startups
Notably, women-led startups in the healthtech sector have garnered support from global development institutions such as USAID and the Bill & Melinda Gates Foundation. For instance, Maisha Meds received $5.25 million in scale-up stage 3 funding from USAID Development Innovation Ventures, emphasizing the crucial role of grants in bridging funding gaps for early-stage healthtech innovators. The report indicated that over half of the deals for African healthtech innovators in 2023 were grants, underlining the significance of grant funding in supporting innovation in the sector.
While grants have played a pivotal role in kickstarting women-led healthtech companies, equity funding remains a dominant source of investment, accounting for 91% of total funding raised. Despite the positive growth in funding for women-led startups, challenges persist in accessing private equity or venture capital funding. Ibijoke Faborode, founder of Africa Female Founders Collective, highlighted the barriers that women founders face, emphasizing the need for initiatives that support female entrepreneurs in navigating the funding landscape.
Navigating the Funding Landscape and Driving Innovation
As women-led startups continue to make strides in securing funding and driving innovation in the healthtech sector, industry experts emphasize the importance of intentional strategies in attracting investment. Amaan Khalfan, CEO of Goodlife Pharmacy, underscored the significance of strong record-keeping and strategic positioning to appeal to investors in the competitive health tech space. Similarly, Jenne Nwokoye, founder of Clafiya, emphasized the need for women entrepreneurs to actively seek out investors who align with their vision and expertise.
Looking ahead, the momentum in funding for women-led healthtech startups signals a positive shift in the investment landscape, paving the way for increased opportunities and visibility for female founders. With a focus on innovation, accessibility, and addressing critical healthcare challenges, women-led companies are poised to drive significant impact in the evolving healthtech ecosystem. By fostering a supportive environment that encourages diversity and inclusivity, the tech industry can continue to thrive through the groundbreaking ventures led by women entrepreneurs.
Links to additional Resources: 1. https://www.crunchbase.com/ 2. https://www.angel.co/ 3. https://www.seedinvest.com/