As we dive into our next Underserved Markets Blog Series, it is timely to explore the abortion space.
In a devastating outcome, on Friday the Supreme Court overturned the landmark Roe v. Wade decision that protects the right to an abortion. Abortion will now likely be prohibited in twenty-six states, forcing women to (i) travel hundreds of miles across state lines to the nearest clinic and risk prosecution upon returning, (ii) self-administer abortion procedures or (iii) seek illegal abortions in their home states. Overturning Roe v. Wade does not stop abortions, it stops safe abortions.
“The …court opinion is only one of many examples of the breakdown that occurs when decisions are made for women instead of by them.” – Melinda Gates, New York Times
Amboy Street Ventures invests in companies that empower women to take charge of their health, so we are closely tracking innovation in the abortion space. To bring light to this darkness, we will highlight promising, bold startups that are innovating and increasing access to abortion.
But first, let’s look at how this space is underserved
Abortion goes against various major religious beliefs. Institutions with religious affiliations touch (either directly or as investors) so many corporations that are working on innovation. When you add the fact that abortion is so politically polarizing, it is no wonder that many companies are hesitant to take a stance and invest / innovate in this arena.
For example, despite the massive demand for abortion pills (54% of all abortions in the US are medication abortions), only two drug manufacturers supply abortion medication to the US market – GenBioPro and Danco Laboratories. And even though the abortion pills can be prescribed over telehealth and delivered in the mail, leading telehealh startups that focus on women’s health and sexual health (i.e. Nurx, Favor, Hims and Hers, and Ro) are not incorporating abortion pills for fear of backlash.
Like so many areas in the sexual health and women’s health space, abortion innovation is dramatically underfunded. While there are massive pools of capital going to non-profit organizations that are doing much needed work in this space, the for-profit investment world tends to avoid the subject altogether. Even some of the most progressive VC funds will not invest in abortion related startups due to restrictions from their fund investors! The fastest innovation happens in the for-profit realm. That is why it is so important that we invest in companies that are empowering women with choices.
Despite a million hurdles, companies are innovating
Thankfully, today companies are beginning to overcome these challenges and disrupt this space.
We are big fans of both Hey Jane and Choix, two companies that offer telehealth prescriptions and discrete delivery of abortion medication. Hey Jane raised its Seed round last year and is gearing up for its Series A, whereas Choix is in the midst of its Seed close now. Hey Jane and Choix are both scaling quickly to meet market demand.
Both of these companies are powered by HoneyBee Health, a tech-enabled mail order pharmacy that raised $5.4m back in 2019. The FDA announced in December that it would permanently allow mifepristone and misoprostol (abortion pills) to be sent in the mail. Just after the announcement, HoneyBee Health worked with the FDA to set standards for pharmacies that can mail these pills. HoneyBee Health is one of the first pharmacies to be permitted to do so.
There are also startups developing AI chatbot services that bring information and guidance to women who are administering abortions at home using the pills.
We are so happy to see companies serving and innovating in the abortion market. Expanding abortion access leads to the economic empowerment of women and improved health outcomes for both women and their children. This access is something that truly impacts everybody and it is devastating to watch individuals’ choices be taken away by the government. Amboy Street will fight back by investing in promising startups that are making a difference.
Please reach out to Carli Sapir directly if you would like more information on investment opportunities in the abortion space – carli@amboystreet.com.
Next, we’ll explore the history behind the underserved markets of Menopause and ageing, along with recent market developments. Subscribe to stay in the know!
