Femtech Fes! Online Vol. 7 "The Potential and Challenges of the Femtech Industry"
Wellness issues for biological women tend to still be a strong taboo, and global investment in this area accounts for only about 1.4% of the total healthcare sector. In addition, it is said that only about 20% of healthcare-focused capitalists have experience investing in Femtech.
This time, we invited Toru Nakajima, Founder & General Partner of 15th Rock Ventures, and Gomi Hayakawa, CEO of Utsuwa Inc., which aims to expand its business in the Femtech market, as guests to discuss "Challenges and concerns faced by Femtech entrepreneurs" and "The potential of the Femtech market from an investor's perspective."
Femtech is a new industry that emerged around 2012. Global investment has grown to approximately 75 billion yen over the past seven years, and the market is expected to reach approximately 5 trillion yen by 2025. During the event, we shared the current state of the domestic and international Femtech markets, based on a market map previously published by fermata, and discussed overseas startups that are expanding globally.
First, let's introduce 15th Rock Ventures, where Mr. Nakajima serves as Founder & General Partner. 15th Rock Ventures has a team of general partners with extensive global investment experience in Deep Tech and IT across Japan, Silicon Valley, Europe, and Asia, as well as expert venture partners with entrepreneurial experience in Japan who provide value-up support. They invest in startups globally in the field of "Human Augmentation," which combines multiple technologies such as AI, robotics, electronics, AR/VR, and brain-machine interfaces.
HP: https://www.15th-rock.com/
In addition to 15th Rock Ventures, they also operate Spirete Inc., a sister organization that accepts personnel from large corporations for secondments/training to create and nurture startups with global impact. HP: https://www.spirete.com/
Here, we were introduced to the startups that 15th Rock Ventures and Mr. Nakajima have invested in.
Bloomlife: A wearable device that monitors labor contractions. A patch attached to a pregnant woman's abdomen senses uterine contractions and fetal kick counts, allowing the timing of contractions to be measured. With big data analysis, it may be possible to predict the due date down to the hour in the future. HP: https://bloomlife.com/
Onera Health: A spin-off from Interuniversity Microelectronics Centre (IMEC), a research institute for advanced semiconductors and nanotechnology in Belgium. A small device that allows easy home testing for sleep disorders such as sleep apnea, which previously required hospital testing. HP: https://www.onerahealth.com/
Amina suggests that Mr. Nakajima might be the first Japanese venture capitalist to invest in an overseas Femtech company. Although interest in the Femtech market is steadily increasing, investment in the Femtech market in Japan is still struggling.
In the latter half, several topics related to the potential and challenges of the Femtech market were discussed from the perspective of entrepreneurs and investors. Regarding the point that Femtech companies are said to be difficult to invest in, Gomi said, "It's not that Femtech companies are difficult to invest in, but that seed rounds for female entrepreneurs are difficult."
Funding at the startup stage of a new business (before a product exists) is inherently a very difficult stage for fundraising. Furthermore, since most venture capitalists are men and there are few women among investors, there seems to be a bias where male entrepreneurs, with whom it is easier to talk as peers, are often chosen.
On the other hand, investments in businesses that are not directly experienced have been made in the past. We hope that Femtech businesses will be evaluated impartially even by investors who are not users.
Furthermore, regarding the domestic Femtech industry, both pointed out that "many companies operate as social activities, giving the impression that they neglect financial figures." Perhaps Femtech entrepreneurs are now required not only to pursue social impact but also to make their businesses sustainably viable.
fermata Group will also explore ways to support ideas and solutions as a new fund that connects entrepreneur communities and user communities!
Femtech Fes! Online will continue to be held. We look forward to your participation!
For the latest event information, please click here.