Maven Clinic, the global virtual clinic for women’s and family health, announced the closing of its $110 million Series D funding round co-led by Dragoneer Investment Group and Lux Capital with participation from Oprah, enabling the company to eclipse a whopping $1 billion valuation. Founded in 2014 to help working women plan and start families, Maven combines an expansive, specialized Telehealth network of more than 30 providers to over 175 countries globally. Its services include individualized care to help parents navigate all paths to parenthood, from fertility through to pregnancy, parenting and pediatrics, helping over 10 million women and families to date. The proprietary Maven Wallet helps employers implement and manage their benefits programs, while at the same time allowing employees to track and be reimbursed for expenses associated with fertility and adoption. Maven sells to both employers and health plans, as well as individuals. Clients include Fortune 500 companies such as Microsoft, Boston Scientific, Bank of America, and L’Oréal as well as Snap and BuzzFeed.
The impact of one of the world’s biggest health problems: infertility
Infertility struggles are one of the biggest global health problems of the 21st century, specifically affecting millennials (aged 22-41). At least one in eight couples experience infertility in the U.S., outpacing diseases like diabetes and cancer, worldwide this figure is 50 million. Infertility affects our mental health, prevents us from bringing our best selves to work, influences our career decisions, and can even send us into financial debt. Most insurance companies don’t cover fertility treatments and, if they do, an infertility diagnosis is required; preventing LGBTQ+ people and single intending parents from receiving these benefits. Early Maven advisor, angel investor, and author Leslie Schrock sees a big opportunity in male fertility, as issues in men’s bodies account for half of all problems.
Other companies reaching massive valuations by meeting employers’ demand for fertility support
With one third of our lives spent at work and the majority of Americans receiving health insurance through their employer, it makes sense that the workplace plays an important part of the support system. Maven’s B2B model in the fertility space proves to be a winner as employees demand personalized support from employers in their journey to start a family. This results in high pressure for employers to offer end-to-end solutions in order to attract and retain talent which has resulted in a few more massive valuations:
- Progyny recently IPOed (NASDAQ: PGNY) at a valuation of $1.3bn and reported an impressive 24% revenue growth in its Q3 2021 earnings call. The employer benefits management company focuses on fertility and family-building benefits solutions exclusively in the United States, providing clients access to 900 fertility specialists and 650 clinics.
- Similarly, Carrot closed its $75 million Series C round, led by Tiger Global Management in August. Carrot works with employers to provide their employees with 4,500 clinics and agencies in over 60 countries worldwide. It offers a Carrot Card, similar to the aforementioned Maven Wallet.
How new start-ups in this space are creating new iterations of this B2B model
Newer startups have recognised the winning model and are creating their own takes on this well-established offering:
- Companies like Oviavo, Fertifa and Peppy aim to disrupt the European, and ultimately global, fertility healthcare systems. While European healthcare is public, fertility laws are significantly outdated.
- Elanza Wellness is a B2B play where employers offer their employees fertility coaching services.
Companies like these demonstrate a tremendous step in shifting the workplace dynamics towards a gender inclusive framework and we applaud those employers that are utilising these services and supporting their employees with their family planning.
Next time in ASV Insights, we discuss what the Lovehoney & WOW Tech merger means for the sexual wellness industry and consider other pioneers in the sexual wellness space.
