FEMTECH and its startups have raised over $5 billion in total for connected cream pumps, period trackers, and other applications and hardware designed for women’s health over the past five years, but the market is tight and now, two pioneers in the space are coming together in a merger call.
willowSan Francisco startup named after wearable grandma pumps is acquiring Elviit starts with the smart Kegel coach and then expands to other new moms’ products, including their own breast milk and cradle.
Terms of the deal have not been disclosed, but we know that with Elvie entering the government, it is coming. London startups and investors have raised more than $186 million in the past 12 years include Octopus Adventure, BlackRock and Blu-ray Rights, etc. Its final valuation is $241 million, according to tone.
The companies have been talking for a while after Willow and Elvie purchased it. But as the negotiations progressed, Elvi also approached the end of the runway.
“After several months of alternative expectations, the deal is forming,” Willow CEO Sarah O’Leary said in an interview.
We understand Willow is working in its existing business, including its products and teams. There are currently 170 people working in London and Bristol, although some of them are already in the workout notice period and willows will not appear.
Willow NEA and MERITECH. Its valuation rose to $256 million in 2021 (which is generally a high water mark for venture capital), but it has fallen when the company raised a combination of equity and debt in 2024.
O’Leary, who was promoted to CEO position at the end of 2023, declined to comment on its current valuation, but said the company may hope to improve more later this year.
Elvie’s tip on bankruptcy illustrates some of the broader challenges in the Royal Local world, an estimated $60 billion market this year, but faces many headwinds. The market since 2021 is for late-stage startups, especially those that focus almost exclusively on AI. At present, there are not many exit opportunities for FOMTECH business. Also, as O’Leary points out, the market (which is undoubtedly the $60 billion figure) is flooded with a large number of cheap products.
And, as ever, hardware – or at least the ability to turn a hardware startup into a profitable business – is still difficult.
Willow’s hope is that its acquisition of Elvie marks the beginning of some broader mergers and Willow’s own efforts to build a broader platform: If exit opportunities are few and far apart, then you can build your own platform and become a merger.
Femtech has indeed emerged as a category over the years due to innovations in cloud, smartphones and big data analytics, easier to build applications to interact with the market, and to evaluate consumer interest through hardware prototypes launched by crowdfunding platforms. These products also come from more capable population requirements that require technology to meet their needs. Now, Willow’s challenge and opportunity will be to see if it can convert it into profit over time.
“We want to prove that fomtech products are not only great stories, but great businesses,” she said.
