In the past five years, women’s health startups, which develop connected breast pumps, period trackers, and other apps and hardware aimed at women, have collectively secured over $5 billion in funding. However, as the market becomes more competitive, two pioneering companies in this sector are merging in response to growing consolidation trends.
Willow, a startup based in San Francisco known for its wearable breast pumps, is acquiring Elvie. Elvie initially gained recognition with its smart Kegel trainer and subsequently expanded to offer additional products for new mothers, including breast pumps and a bassinet.
Although the terms of the acquisition have not been disclosed, it is reported that Elvie has entered administration. The London-based company has raised over $186 million in funding over the past 12 years from investors such as Octopus Ventures, BlackRock, and Blume Equity. According to PitchBook data, Elvie’s last known valuation was $241 million.
Discussions between Willow and Elvie have been ongoing for some time, initiated by Willow’s interest in purchasing Elvie. Meanwhile, Elvie was simultaneously approaching the end of its financial runway.
Willow’s CEO, Sarah O’Leary, stated that “the transaction is taking shape after many months of alternative expectations.” Willow is set to take over Elvie’s existing business, including its products and team. There are 170 employees currently working in London and Bristol, although some of them are likely to leave as they are completing their notice periods.
On its part, Willow has amassed approximately $254 million through a mix of equity and debt financing, with backing from investors like NEA and Meritech. According to PitchBook, Willow’s valuation climbed as high as $256 million in 2021, a peak period for venture funding generally, but declined in 2024 following another round of equity and debt raises.
O’Leary, who became CEO at the end of 2023, refrained from disclosing Willow’s current valuation but mentioned that the company might consider raising additional funds later in the year.
Elvie’s bankruptcy highlights some broader challenges within the women’s health market, which is projected to be a $60 billion industry this year but has been hampered by several obstacles. Since 2021, the landscape has remained tough for later-stage startups, particularly those not focused on AI. There are few exit opportunities for women’s health businesses, and the market has been saturated with a variety of less expensive products.
Additionally, recent issues faced by companies like 23andMe emphasize the complexities of managing user data, particularly health data, when business operations decline. This is especially pertinent for women’s health and reproductive businesses in the present political context. Furthermore, transforming hardware startups into profitable enterprises remains a persistent challenge.
Willow views its acquisition of Elvie as the beginning of broader consolidation efforts and aims to expand its platform: in a market with limited exit opportunities, the strategy is to create a robust platform and become a consolidator.
Women’s health as a sector has grown over the years, facilitated by advancements in cloud computing, smartphones, and big data analytics, making it easier to develop apps and launch hardware prototypes through crowdfunding to assess consumer interest. These advancements have emerged in response to an empowered demographic seeking technology that meets their specific needs. Willow’s future challenge and opportunity lie in converting this demand into profitability.
“We want to show that femtech products are not only great stories, but great businesses,” O’Leary remarked.
