Anyone who knows me knows I founded Amboy Street Ventures out of a passion to increase access to women’s health and sexual health solutions. What you may not know is I also started Amboy Street because I saw jaw-dropping returns from investing in this space. Billion-dollar companies have emerged, bringing this outdated industry into the 21st century.
As I expand the Amboy Street fund, I’ve created this blog series to share our findings and dive into the fastest growing sectors of this industry ripe for innovation and investment.
So why has it taken over 100 years for the women’s health and sexual health industries to be disrupted?
For starters, although everyone on earth has needs related to women’s health and/or sexual health, solutions in this space have been overlooked by old-fashioned investors who consider them fringe or vice. And there has been a lack VC funding flowing to female founders generally and an even smaller amount supporting female founders working on women specific health solutions.
Take a look at the evolution of this space over time:
- 1916 Birth control clinic emerges: The first ever, US-based birth control clinic opened illegally at 46 Amboy Street (hence our name) in NYC.
- 1960 FDA approves the pill: The FDA greenlights the first oral contraceptive.
- 1977-1993 Women excluded from clinical trials: In 1977 the FDA banned women of “childbearing potential” from participating in clinical research studies. After realizing the importance of exploring medical effects on both genders, in 1993 the FDA explicitly reversed the recommendation.
- 1973 Roe v. Wade: In a decision that’s as volatile today as it was 48 years ago, the United States Supreme Court ruled that state and federal restrictions on abortion in the first trimester were unconstitutional. Unfortunately, in the past year we have seen a return to draconian abortion laws worldwide.
- 2013 Viagra downfall creates innovation: On June 21, 2013, Viagra lost its exclusive position in the UK. As a result, prescriptions of the active ingredient Sildenafil skyrocket and innovation in male sexual wellness categories soars.
- 2019 a year of firsts: For the first time in history, more women graduate from medical school than men. Industry giant Boots/Walgreens leads mainstream pharma and retail by becoming the first to have a dedicated sexual wellness category.
.jpg)
Today, the pandemic has blown up this industry, along with its iron-clad ancient taboos, exposing its so-called vice for the positive impact it has on our social and economic systems. In March 2020, online retailers witnessed a spike in customers searching for “sexual wellness” – the term was up by 850% on Cult Beauty. In the past year, retailers and celebrities alike have proudly come out to buy, invest in, and advocate for this space. Nordstrom, Bloomingdales and Sephora now sell vibrators made by Amboy Street portfolio company Dame Products. Amy Schumer, Chrissy Teigen and the Kardashians spoke out about their experiences with IVF and egg freezing. Dakota Johnson, Cara Delevigne and Lily Allen joined sex-positive startups. It’s not just cool or trendy; it is a huge economic opportunity.
Today we sit at a unique time in history, marked by an unprecedented acceleration of innovation, coupled with a growing adoption of both women’s health and sexual health terminology and data driven solutions.
VCs have an opportunity now to generate astonishing returns and grab access in early stage companies while supporting solutions that will improve billions of lives.
From the $1.6b and $1.3b exits at Hims & Hers and Progyny respectively, to the $1.2b merger of Wowtech and Lovehoney; in the last year alone, market valuations including Everlywell at $2.9b, Maven at $1b and Kindbody at $1b are proving this industry is explosive.
VCs love big bets. Today we can confidently take them in sexual health and women’s health, as the space shifts from vice or niche to mainstream.
**Stay tuned over the coming weeks as we break down the history, developments and opportunities for the women’s health and sexual health market — from menstruation and hormonal health to LGBTQ+ health and gender affirmation and everything in between.**
