The $8 Billion Wake-Up Call: Why Private Capital Must Step Up for Women’s Health and Femtech Innovation Now

The Missed Opportunity in Women's Health and Femtech

For decades, women’s health has been underfunded, overlooked, and dismissed as "niche"—despite the fact that women make up over 50% of the global population and drive 80% of healthcare decisions.

The result?

A massive missed market opportunity and an $400 billion economic drain from a lack of initiatives addressing undertreated conditions like endometriosis, PCOS, and menopause alone.

According to McKinsey, closing the women's health gap is a $1 trillion industry. Depending how you define the category, the FemTech segment is expected to hit between $20 and $120 billion by 2030, and yet investors are still slow to act.

Just a few years ago, the picture seemed to be improving. Landmark funding rounds for femtech startups, expanded reproductive healthcare access, and growing corporate interest signaled a shift.

But now, fresh political and economic headwinds are threatening that progress. With the Trump administration’s return raising concerns over reproductive rights in the U.S. and shifting global politics leading to fresh cuts in women’s and family health funding globally, innovation in this space has never been more urgent.

Beyond emerging tech solutions, the market opportunity also lies in addressing fundamental gaps in care, particularly in underserved communities. Millions of women worldwide still lack access to contraception, perinatal services, and basic maternal healthcare—not just in low-income countries, but in underserved regions of high-income nations as well. Investing in women’s health isn’t just about the next breakthrough—it’s about fixing the cracks in a system that continues to fail half the world’s population.

Private capital must wake up—not just for the sake of women’s health, but for the untapped returns waiting in plain sight.

Imagine you’re running a startup on the brink of a breakthrough—perhaps a low-cost diagnostic for endometriosis or a maternal health AI tool that could prevent thousands of deaths. You've spent years in R&D, secured a US Agency for International Development (USAID)-backed grant, and built partnerships across Africa and Southeast Asia. Then, overnight, the funding stops. No warning, no transition plan—just silence.

This isn't a hypothetical. It's happening right now.

In January 2025, President Trump issued a 90-day suspension of foreign aid, including USAID funding, as part of a comprehensive review to align aid with "America First" policies. This abrupt freeze has left women's health startups, NGOs, and research initiatives in a precarious position. Programs addressing maternal health, contraception access, and reproductive care are vanishing—not because they failed, but because the political and economic landscape shifted. This, in addition to the announcement the US would be leaving the World Health Organization.

And here's the punchline: Private capital, the sector that could save the day, is still hovering on the sidelines.

USAID’s Funding Freeze: The $8 Billion Black Hole

USAID has been a significant contributor to global health, with the U.S. spending $72 billion on international humanitarian assistance and development in 2023. However, the recent policy shifts have led to a massive freeze, stalling disbursements and leading to project shutdowns worldwide.

In addition to core health programs, USAID cuts also affect vital areas such as food security and climate resilience, which indirectly impact health by influencing key social determinants.

The fallout is severe:

• Over 14,000 USAID staff have been placed on leave, halting program operations.

• Clinics across Africa and Latin America are shutting down due to halted USAID support. 

• Vital research into cervical cancer prevention and women's health AI tools is now in limbo.

• An estimated 3.8 million women have already lost access to contraceptive care between January 20 and February 18, 2025.

For startups and scale-ups innovating in femtech and global health, this appears catastrophic. Many relied on blended financing models, where grants de-risked their solutions before private investors stepped in.

Now, the safety net has disappeared, and for many, the runway is collapsing.

Macroeconomic Trends: The Perfect Storm for Women’s Health

It's not just USAID. Broader macro trends indicate a brewing storm:

1. The End of Cheap Capital

Over the past decade, femtech and global health innovation thrived in a low-interest-rate environment. Cheap money allowed impact investors to take bigger bets. Now, with higher interest rates, venture capital is more risk-averse, and limited partners (LPs) are pulling back from anything that doesn't promise hyper-growth.

2. Political Instability = Policy Reversals

Governments in the U.S. and Europe are rolling back funding for global health and reproductive rights. The Helms Amendment, which restricts U.S. funding for abortion services, is being enforced more aggressively. Internationally, right-wing populism is redirecting budgets toward nationalism, cutting off global collaborations.

Other countries, such as the UK, have also dialled back overseas development funding in a wider hollowing-out of international aid that will impact how health services, research and innovation play out for decades to come.

3. Rising Health Inequities

The global economic downturn disproportionately affects women. According to the World Economic Forum’s 2023 Global Gender Gap Report, gender equality is now further from reach than it was a decade ago. Health disparities are growing, and without intervention, women's health innovation risks becoming a luxury rather than a necessity.

Private Sector: Your Move

The reality is stark: Governments are retreating. If private capital doesn't step in, women's health innovation could regress by a decade or more.

This isn't just a moral argument—it's a business opportunity. Investors who understand the urgency—and act now—will define the next decade of health innovation.

The USAID funding freeze and aid cuts by European countries may appear catastrophic at first glance, especially for countries heavily reliant on international aid for health interventions. However, while these decisions were irresponsibly handled and have undoubtedly created a significant disruption, they present a unique opportunity to rethink how we approach global health funding. The reduction in traditional aid channels opens the door to innovative, sustainable models that move towards long-term, scalable solutions. This shift could encourage the development of more efficient, outcome-driven funding mechanisms, with greater involvement from the private sector.

For the private sector, this is a pivotal moment to step in and capitalize on the need for new healthcare delivery models. With the right partnerships and investments, private companies can drive innovation in health technologies, solutions, and services that better align with the needs of underserved communities.

The absence of traditional aid might create a vacuum, but it also allows for the development of sustainable, market-driven approaches that prioritize impact and scalability.

This represents a clear opportunity for private-sector players to lead in providing global health solutions, creating new business models that are both profitable and beneficial for populations in need.

How the Private Sector Can Take Action Now

1. Reallocate Impact Capital—Now

If you're an LP, VC, or institutional investor, shift funds toward women's health innovation immediately. Startups previously de-risked by USAID grants now need urgent support to stay afloat. Consider doubling down on femtech, maternal health, and digital health solutions targeting low- and middle-income countries.

2. Build Private-Public Partnerships (Even Without Governments)

Traditional public-private partnerships (PPPs) relied on government involvement. That's no longer a given. Instead, private capital can form direct partnerships with NGOs, healthcare networks, and regional innovation hubs to fund projects previously backed by public money.

3. Support Revenue-Generating Health Models

It's time to move beyond donation-driven models and fund startups that blend impact with profitability. Subscription-based contraceptive services, B2B femtech solutions, and AI-powered maternal health platforms can generate sustainable revenue while improving health outcomes.

"Investment in women is unrivalled in its return on the investment for the health of all of society." - World Economic Forum

4. Embrace Market-Based Solutions

NGOs and global health organizations that previously relied on grants must pivot to market-based solutions. Private capital can provide bridge financing, strategic guidance, and operational support to help these organizations build financially sustainable models.

5. Get in Touch with FemHealth Africa

If you're looking to invest in women's health but don't know where to start, FemHealth Africa is the go-to ecosystem for emerging femtech and women's health startups in Africa. The platform connects investors with high-impact companies solving real healthcare challenges, providing curated deal flow, due diligence support, and ecosystem insights.

The Next Five Years: A Defining Moment for Health Investors

History has shown that times of disruption create opportunities for new leaders to emerge. Just as industries redefined themselves after the 2008 financial crisis, women’s health innovation is now at a tipping point. The organisations that step up to address the growing demand for comprehensive, accessible, and equitable healthcare solutions for women will shape the future of the industry.

"The health of women is not just about equality—it’s about economic stability, global development, and saving lives. If investors don’t step up now, they’ll look back and realize they missed one of the most transformative opportunities of the century." — Dr. Natalia Kanem, Executive Director, UNFPA

The question is: Who will step up?

If private capital waits, it will inherit a decimated landscape where rebuilding will be exponentially harder. But those who move now, who bet on women's health when others retreat, will define the future of global health.

The USAID freeze isn't just a funding gap. It's a wake-up call.

And if you're an investor, entrepreneur, or health innovator, the time to act isn't tomorrow.

It's right now.

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At FemHealth Africa, we’re dedicated to advancing women’s health across LMICs and Africa. Whether you’re a founder, innovator, corporate, or investor, we offer tailored services to help you navigate the unique challenges and seize the opportunities in this evolving sector. Get in touch with us today to explore how we can collaborate and drive impactful change in women’s health across the continent.