The surge of AI in Europe is neglecting femtech.

      If left unaddressed, Europe's narrow emphasis on AI investment will undermine the health of a significant portion of its population. As venture capital floods primarily into the AI industry, innovation in women's health — a crucial component of essential infrastructure — once again finds itself struggling for attention and resources.

      In 2021, global investments in femtech reached a high of €1.89 billion, only to drop to €1.1 billion the following year due to a tech funding crisis that diverted capital heavily towards AI. This decline was influenced by various factors, including unfavorable market conditions, diminishing investor risk appetite, and the natural progression of the sector. However, the simultaneous rise of AI funding alongside the decrease in femtech investment reveals critical issues in capital distribution.

      In 2023, European femtech received a mere €164 million from a total of €8.3 billion in healthtech funding. In contrast, US-based femtech startups have raised €4.5 billion since 2019. If Europe does not act immediately, the AI boom could significantly worsen an already serious health crisis and hinder progress in a sector where it previously excelled globally.

      Today, 44% of European femtech startups have failed to secure any funding, even though projections estimate a €30 billion market for femtech in Europe by 2032. The gap between potential and investment is staggering.

      This trend persists across the ecosystem, with skilled founders who have developed effective solutions for endometriosis, menopause, fertility, and maternal health being overlooked. These businesses have substantial market potential and promise high returns, yet they struggle to garner attention compared to the latest, most glamorous general-purpose AI startups that cross investors’ desks.

      Ironically, while AI startups attract investor interest by claiming to predict future health issues, femtech founders — who have often already identified current crises and created viable solutions — face challenges in securing basic funding.

      This is not an argument against AI; in fact, many femtech companies are creating genuinely beneficial AI applications for women's health. However, the singular focus of investors on general-purpose AI platforms leaves specialized healthcare solutions vying for what little attention remains.

      There is also a human toll associated with this oversight. The neglect of femtech is not just a missed investment opportunity, but also a failure in addressing women’s health. The typical woman suffering from endometriosis waits seven years for a diagnosis, and globally, up to 70% of women with polycystic ovarian syndrome (PCOS) remain undiagnosed. These statistics highlight a worldwide issue. European femtech solutions are not only crucial for women in Europe but also have the potential to address significant challenges globally.

      Rather than alleviating these issues, general-purpose AI that lacks healthcare specialization often exacerbates them. Research from organizations like UNESCO and UN Women indicates that AI and LLMs built on biased data continue to reinforce male-centered medical norms. This can result in misdiagnoses, delays in treatment, and years of unnecessary suffering.

      In 2024, all-female founding teams — which make up a significant part of femtech founders — received just 2% of global VC funding, in contrast to 84% for male-only founding teams. This disparity has created significant gaps in women’s healthcare infrastructure. As someone leading an all-female senior team that secured one of the largest early-stage femtech funding rounds in Europe this year, I can attest to how harsh the current fundraising landscape is.

      Europe's femtech landscape has historically been characterized by significant public investment, innovative startups, and strong policy leadership in gender-sensitive healthcare. The region boasts femtech trailblazers such as Flo Health (UK), Clue (Germany), Natural Cycles (Sweden), and Ava (Switzerland). However, this advantage is dwindling.

      The unpredictable nature of the AI market will continue. In contrast, femtech — defined as a category of products, services, and software tailored for women's health needs — remains relevant. Europe's failure to acknowledge this reality places it at risk of lagging behind regions that maintain a diverse range of healthtech investments.

      To begin addressing the issue, we need a reframing of perspectives. It's essential to recognize that femtech is not a niche area; it caters to 50% of the global population. Present any other market encompassing 3.9 billion customers, and watch venture capitalists rush in. However, when presenting women’s health to the same investors, their interest often wanes.

      Practically, investors must balance their AI investments with established healthcare solutions. It’s not merely about creating socially responsible portfolios — there's a considerable, underserved market ready to be explored.

      This requires developing funds specifically for femtech and supporting more women-led investment teams who truly grasp the challenges involved. Women-led teams are noted by UNESCO to be significantly more adept at identifying femtech investment prospects, possessing insights into the sector's challenges and solutions that their male counterparts may lack. Evidence shows that in Europe, nations with dedicated female angel investor networks