Health & Wellness

In this blog, I will shed light on some emerging trends that show why the future of HealthTech is so bright.

Starting in 2020, the COVID-19 pandemic created a myriad of challenges in the health care sector, but it also created enormous opportunities for innovators and investors.

• In 2020, investors poured $21.6 billion into digital health companies—more than double the investments made in the prior year, and almost four times the amount invested in 2016, according to the research firm Mercom Capital Group.

• The financial markets took a hit during the COVID-19 pandemic, but the health technology market continues to thrive.

• After a record-breaking first quarter in digital health investment, the strong performance continued in the second quarter with investors sinking $4.2 billion into digital health globally, according to a report from investment firm Startup Health.

• Total health innovation funding for the first half of 2020 hit $9.1 billion, up nearly 19% compared to $7.7 billion invested during the same period in 2019, the firm reported.

• The Startup Health report tracks an interesting trend about where the money is going in digital health—everywhere, it seems.

• While telemedicine companies saw a funding boom in the first quarter, investments in the first half of 2020 were made across a diversified digital health market including insurance, pharmacy, wellness, cancer detection and wearables.

• "What we’re not seeing is a market dominated by telemedicine or remote care, despite the outsized growth in adoption those industries have seen of late. We’re also not seeing a market overwhelmed by COVID solutions," Startup Health's co-founders wrote.

• The biggest deals in the first six months of 2020 include Grail, a healthcare company focused on early cancer detection, with $390 million, a $250 million investment in drug delivery startup Alto Pharmacy and a $225 million funding round for tech-enabled insurer Oscar Health.

There are many emerging technologies in the health tech sector-- telemedicine & virtual health, self-monitoring tools, wearables, etc.-- but let’s hone in on one that is guaranteed to draw an opinion from almost everyone -- Sex Technology (aka SexTech)

• SexTech is a $30 billion industry, The Guardian reported in 2017.

• Sexual wellness is an underfunded industry that is set to explode as sexual taboos continue to lift.

• SexTech — which has evolved from a male-centric vice industry to a female-centric wellness business — is here to enhance everything from pleasure to medicine.

• Consumer demand is surging: There were 36m+ connected SexTech devices in use globally last year, representing 87% YoY growth.

• The market for connected devices alone is expected to more than double over the next 5 years to reach $9B.

• SexTech goes far beyond toys. It’s set to disrupt all areas of the sexual wellness space, from health to education.

• The wider industry of sexual wellness, which is now worth $62B, is forecast to exceed $125B by 2026.

• The stigma surrounding sex means that investors are still jittery about the space — but sex is a universal human experience, and one of the biggest markets there is.

• The sex-positive movement is driving change and lifting taboos; industry veterans believe we are on the cusp of a surge in funding.

• No clear market leader is producing flawlessly connected devices, leaving the high-tech industry-wide open — both for sex-tech innovators and entrepreneurs with tech expertise.

• We spoke with a Trendster who is leveraging opportunities in the sexual hygiene and personal care space.

• The US SexTech market is still largely offline, leading to attractive eCommerce opportunities.

• Prioritizing security and the digital privacy of users will be key to fulfilling SexTech’s potential.

• SexTech goes far beyond pleasure. It’s tech that’s designed to enhance and innovate everything from sex and relationships to education, health, medicine, and gender identity.

• Market research firm Stratistics estimates the global sexual wellness market, including sex tech, will grow to $122.96 billion by 2026.

• Chains like Walmart and Urban Outfitters are already stocking some sexual wellness products like lube and toys, according to Cole.

• Significant barriers in sex-tech still remain; entrepreneurs could focus on solutions in payment processing, advertising, and manufacturing.

• SexTech is set to revolutionize sexual health by providing discreet solutions to common problems.

• Sex education is ripe for disruption.

Driven by innovation and passion at the intersection of healthcare and technology, this is just one example of how HealthTech is creating massive value in a vertical market full of opportunities.

Our goal here at Fox Capital Investment Group is to create ripples that evolve into waves of value across this vast ocean of HealthTech... then ride that wave to financial success!