“The WHAM Report: The Business Case for Accelerating Women’s Health Investment,” released today at the J.P. Morgan Healthcare Conference, reveals a paradigm shift in women’s healthcare. The report moves beyond reproductive health to highlight a vast, untapped market encompassing conditions that uniquely, disproportionately, or differently affect women, ranging from autoimmune diseases and Alzheimer’s to cardiovascular conditions. The growing recognition of women’s healthcare as a prime investment opportunity highlights the potential economic growth and health cost savings if VCs don’t invest. The report underscores a compelling case for investors to capitalize on this rapidly expanding market, driving innovation that addresses significant unmet needs and improves health outcomes for women globally.
“This is a largely untapped market with tremendous potential for return,” shares Carolee Lee, CEO and Founder of WHAM (Women’s Health Access Matters). “By accelerating innovation in women’s health, we can unlock significant economic and health benefits—not just for women, but for everyone.”
Redefining Women’s Healthcare Reveals Vast Untapped Opportunity
The WHAM Report—produced in partnership with the KPMG Foundation and KPMG—reveals a significant shift in the definition of women’s health. It moves beyond the traditional focus on reproductive health to encompass a broader spectrum of conditions.
Surprisingly, only 5% of health conditions—menopause (projected to reach $27 billion by 2030), ovarian cancer (projected to reach $5.44 billion by 2033), and endometriosis (its size comparable to the market for diabetes)—are exclusive to women.
The remaining 95% represent a vast untapped market, including conditions like autoimmune diseases (80% of patients are women) and Alzheimer’s disease (66% of patients are women).
Other diseases affect women differently than men. Women are 50% more likely to die within the month following a heart attack, and non-smoking women are twice as likely to develop lung cancer than men, highlighting the need for sex-differentiated healthcare. Other factors impact the need for innovation in this space. Working women spend $15 billion more annually on healthcare than men, and unmet needs lead to an estimated $65 billion in lost earnings for women each year.
“High-growth opportunities like autoimmune, neurology, and cardio-metabolic diseases reveal a clear path for investors—focus on women as a pivotal patient population and ask for data that reflects the market realities,” explains Dr. Christina Isacson, Partner, Lightstone Ventures, in the report. “This allows us to drive innovation that benefits all while maximizing market opportunity and returns.”
Women’s Health Sector Is Primed For Growth
The NIH Revitalization Act of 1993 was a landmark achievement in closing the gender gap in medical research. By mandating the inclusion of women in clinical trials, it ensured that medical research better reflected the needs of the entire population. Accounting for sex differences in healthcare research improved patient outcomes and reduced risks for patients and investors. The research laid the foundation for increased commercialization and investment in women’s health.
A 2024 White House initiative, funded by nearly $1 billion in ARPA-H funding, is sparking a national movement to advance women’s health through research, expanded services, and targeted care.
“It’s harder and takes longer to build a healthcare company, especially in women’s health,” describes Halle Tecco, Professor, Entrepreneur, and Investor. “But I believe that hard can be your competitive moat.”
Between 2018 and 2023, VC investment in women’s health grew by 300%. Still, only 2% of VC health investments went to women’s health. With four IPOs among 35 successful exits in women’s healthcare during the same period, this sector is proving its viability for high returns.
Seven companies have reached unicorn status by the end of 2023: Hologic, Ōura, Kindbody, Maven, Progyny, Flo, and Ironwood. Investment in women’s health is increasing, from VC to private equity. Companies like Organon, Medtronic, Cigna Healthcare, Aetna, and health systems like Northwell Health are investing in this space.
The report projects that VC investment in the women’s healthcare market will reach $66 billion by 2033. However, to understand the full scope of the opportunity, the report suggests that the market size must be estimated for each specific condition using a bottom-up approach to assess the potential accurately.
“Markets must drive all entrepreneurs and innovators to seize the untapped potential of the women’s health space,” says Michael Annichine, CEO of Magee-Womens Research Institute and Foundation. “It’s an imperative to invest in a sector brimming with opportunity, ready to deliver transformative impact and substantial returns.”
The WHAM Report emphasizes the significant economic opportunity of investing in women’s health:
- An investment of $350 million in women-focused research could yield $14 billion in financial returns.
- Doubling investment in women-focused research for coronary artery disease could save $2 billion in healthcare costs.
- Closing the 25% gap in women’s health outcomes could add at least $1 trillion to global GDP by 2040, generating $3 in economic growth for every $1 invested.
The market for conditions disproportionately affecting women is rapidly expanding and is projected to reach $30 billion by 2030.
Investing in Women’s Health: A Collaborative Approach
“No single fund can carry a company to exit,” elucidates Dr. Alice Zheng, Partner, Foreground Capital. “Successful investment in women’s health requires a collaborative ecosystem.” Increased awareness and interest in women’s health, driven by decades of advocacy and increased public-private funding, presents a significant opportunity to close existing gaps. Progress requires a multi-faceted investment of dollars, time, talent, policies, and focus.
WHAM has two collaboratives—one focused on research and the other on investment—to accelerate the lab-to-marketplace pipeline for women’s health innovation. The 3Not30 initiative is committed to accelerating research, innovation, and investment in women’s health over the next three years.
WHAM’s recently formed Investment Collaborative is focused on boosting sex-based research and innovation investment. “By accelerating innovation in women’s health, we can unlock significant economic and health benefits—not just for women, but for everyone,” says Lee. “The WHAM Investment Collaborative goes beyond closing the funding gap; it’s about driving solutions that will transform healthcare.” Investment Collaborative Founding Members are Canaan Partners, Insight Partners, L Catterton, Lightstone Ventures, Morgan Health, Northpond Ventures, RA Capital, and UPMC Enterprises.
The Investment Collaborative goals include:
- Doubling venture capital investment in women-owned companies from 2% to 4% by 2026, targeting advancements in diagnostics, treatments, and prevention for women’s health.
- Strengthening investor relationships and awareness to speed up the development and launch of women’s health innovations.
- Publishing impactful reports and indices, such as the annual WHAM Investment Report, to track progress and highlight investment opportunities.
The WHAM Report illuminates the compelling financial and societal benefits of investing in women’s health, moving beyond outdated notions and embracing a holistic approach. By capitalizing on this burgeoning market, investors can drive innovation, improve health outcomes for women globally, and unlock significant economic growth.
