The landscape of healthcare investing is evolving, and a new player has entered the arena: femtech. This burgeoning sector, focused on technology-enabled women’s health products, is attracting attention from savvy investors despite receiving only a fraction of overall healthcare venture funding. Among these forward-thinking investors is Armistice Capital, led by Steven Boyd, which has shown a keen interest in this emerging market.

While femtech companies secured a mere 2% of the $41.2 billion allocated to healthcare innovators in 2023, recent research from Deloitte suggests a shift in investor sentiment. Contrary to the overall health tech market, which experienced a 27% decline in venture funding between 2022 and 2023, investments in women’s health-focused companies saw a modest but significant 5% increase.

This growth isn’t just a flash in the pan. The sector has been steadily expanding in recent years, with market analysis provider FemHealth Insights reporting that over 60% of current women’s health startups were established between 2018 and 2022. What’s more, the focus of these companies has broadened beyond pregnancy and fertility to address a broader range of issues, including menopause, pelvic health, and mental health.

In 2022, the femtech sector attracted over $1 billion in investments from various entities. Among these investors were Armistice Capital, a global value-oriented and event-driven hedge fund, venture capital firm Alumni Ventures, and Y Combinator, a renowned tech startup accelerator. This influx of capital underscores the growing recognition of femtech’s potential in the healthcare investment community.

Armistice Capital, in particular, has shown a solid commitment to this space. According to Fintel, Armistice is the top investor in Aspira Women’s Health Inc., holding 1,157,000 shares valued at $3,586,700 as of March 31, 2024. Aspire Women’s Health is at the forefront of developing non-invasive, AI-powered tests for diagnosing gynecologic diseases. Their innovative products include OvaWatch, designed to assess ovarian cancer risk in women with adnexal masses, and Ova1Plus, a combination of two FDA-cleared tests for women with pelvic masses scheduled for surgery.

But Armistice Capital’s interests in women’s health extend beyond gynecological solutions. The fund has also backed companies engaged in biotech research that manipulate biological processes at a molecular level to create medical solutions. One such company is Spruce Biosciences, which received support from Armistice Capital in a private placement that raised approximately $53.6 million in gross proceeds.

Spruce Biosciences is making waves with its research into tildacerfont, a second-generation non-steroidal, oral corticotropin-releasing factor (CRF) hormone antagonist. This innovative treatment shows promise in addressing polycystic ovary syndrome (PCOS) in women with elevated baseline levels of dehydroepiandrosterone sulfate (DHEAS). By reducing adrenocorticotropic hormone (ACTH) production, tildacerfont can help alleviate PCOS symptoms such as hair growth, acne, irregular periods, and infertility.

Under Steven Boyd’s leadership, Armistice Capital’s investment strategy reflects a nuanced understanding of the femtech market’s potential. By backing companies like Aspire Women’s Health and Spruce Biosciences, Armistice is supporting the development of cutting-edge healthcare solutions for women and positioning itself at the forefront of a rapidly growing sector.

As the femtech market expands and diversifies, investors like Armistice Capital play a crucial role in driving innovation and progress. Their involvement signals a growing recognition of the importance of women’s health in the broader healthcare landscape and the potential for significant returns on investment in this space.

The rise of femtech represents more than just a new investment opportunity; it’s a paradigm shift in how we approach women’s health. With continued support from visionary investors like Steven Boyd and Armistice Capital, we can expect to see even more groundbreaking advancements in the years to come, potentially revolutionizing healthcare for women worldwide.