Our Approach to FemTech & Investing in Dame Products

Written by: Kinsey Hart

Background on FemTech

Women represent half of the world’s population but have been underserved when it comes to health. On average, women face higher rates of being misdiagnosed and wait longer for treatment.

The term FemTech was coined in 2013 and describes companies that aim to address this gap in women’s healthcare by providing solutions for women. The FemTech category is predicted to be a $50 billion market by 2025 and FemTech companies have raised ~$1B since 2014. While the definition of FemTech is any technology that aims to improve women’s lives, 95% of companies funded in the space have been focused on reproductive health.

Chingona’s Take on FemTech

While most of the funding has gone to the fertility space, a women’s reproductive years only represent a fraction of her life. We believe there are many opportunities outside of fertility for companies to address women’s health.

Starting with sexual wellness, women are more likely to be adversely impacted by STDs and are less likely to experience pleasure during sex. That’s a double whammy. There are opportunities for companies to improve diagnosis and treatment of STDs as well as address the pleasure gap.

While only some women have children, all women go through menopause. In a study, 78% of respondents say that menopause interferes with their lives and on average, women will spend $20,000 trialing products, treatments, and services to address menopause. Despite the large need, only 5% of funding in the FemTech space has gone to menopause companies.

Beyond the reproductive system, women have a whole other body. There are several conditions that disproportionally affect women including: stroke, arthritis, and fatality from heart disease. In a study, women were 50% more likely to receive the wrong diagnosis following a heart attack. Overall, misdiagnosis led to continued pain, mental strain, and in some cases, life-threatening conditions.

While the work is important, being a founder in the FemTech space isn’t for the light of heart. From what we’ve seen at Chingona Ventures, it’s harder to advertise — Facebook shuts down ads and the NYC MTA kicks SexTech products off the subway. While it’s accepted to advertise erectile dysfunction products, it’s been historically taboo to advertise vibrators or menopause products. In addition, we’ve seen FemTech founders enter more legal battles to bring their products to market or to gain marketing airtime. Despite the obstacles, there are inspiring founders pushing their companies and women’s health forward.

Why We Invested in Dame

In a study of self-identified heterosexual cis men and cis women, 23% of women say that having sexual intercourse with their partner is not pleasurable. Dame aims to empower women to take control of their own physical and mental health from adolescence to late in their adulthood. As a holistic sexual-wellness brand, Dame dismantles shame for women and their partners. Through their platform approach via tools, plant-based consumables, and well-being workshops, they harness sexual power for good. Dame’s mission is to “close the Pleasure Gap — the disparity in satisfaction that people with vulvas experience in the bedroom, versus their cis male counterparts.”

With few prior funds raised, 86% YoY growth, and impressive margins, Dame not only has an inspiring mission, but also has strong economics.

Due to the nature of its products, Dame couldn’t get into an accelerator, had difficulty fundraising due to lack of funding in this industry and was blocked from advertising on the NYC MTA. Yet, CEO Alexandra Fine led the company to huge growth. Extremely scrappy and capital efficient from the start, this is the ideal company when we think about consumer deals.

Dame’s vision is to own the full sexual health experience — from the first conversation parents have with their children about sex to rekindling romance after having a baby.

We’re behind them and believe it’s about Dame time for equity in the bedroom.