More than $5 billion has been raised in the last five years by women’s health and related startups that are creating connected breast pumps, period trackers, and other hardware and apps for women. Two of the industry’s pioneers are now joining forces as consolidation beckons.
Elvie, which began with a smart Kegel trainer before branching out to other items for new moms, including its own breast pumps and most recently, a bassinet, is being acquired by Willow, a San Francisco business that gained notoriety for wearable breast pumps.
The deal’s specifics have not been revealed. Over the past 12 years, the London startup has raised over $186 million from investors such as Blume Equity, BlackRock, and Octopus Ventures. It was last valued at $241 million, according to PitchBook statistics.
Since Willow approached Elvie to acquire it, the two businesses have been in contact. However, while negotiations went on, Elvie also got closer to the end of its runway.
“The transaction is taking shape after many months of alternative expectations,” Willow CEO Sarah O’Leary said in an interview.
We understand that Willow is taking over the current company, along with its staff and merchandise. Currently, 170 people are employed in Bristol and London; however, some of them are already completing their notice periods and will not be joining Willow.
For its part, Willow has raised about $254 million from investors, including Meritech and NEA, through a combination of debt and stock. When the company raised a mix of debt and equity in 2024, its valuation fell from its peak of $256 million in 2021 (a high watermark for venture capital in general), according to PitchBook.
O’Leary, who took over as CEO at the end of 2023, stated that the company would try to raise further funds later this year but declined to comment on its current valuation.
Elvie’s plunge into bankruptcy highlights some of the broader issues facing the women’s health industry, which is predicted to generate $60 billion this year despite several obstacles. Since 2021, the market has remained difficult for later-stage firms, particularly those that are not almost exclusively focused on artificial intelligence. Currently, women’s health firms do not have many exit opportunities. Furthermore, as O’Leary notes, the market has been overtaken by a myriad of less expensive goods, with everyone seeking that $60 billion amount.
Being less expensive is one issue, but so is the sheer number of comparable products available on the market. In the past, Elvie has unsuccessfully sued at least one company for patent infringement; surprisingly, Willow also launched a patent claim against the company. An acquisition ends that struggle.
When things go wrong with the business, the recent drama with 23andMe also brings to light some of the major problems with managing user data, particularly health data. And given the present political environment, that may be even more true for companies that deal with women’s health and reproduction.
Hardware, or at least the capacity to transform hardware startups into successful enterprises, is still challenging.
If exit options are few and far between, Willow hopes that its acquisition of Elvie will signal the beginning of some broader consolidation and Willow’s own efforts to expand its platform: Create your own platform and become the consolidator.
The cloud, smartphones, and advancements in big data analytics, together with simpler-to-create apps to interact with the market and hardware prototypes released through crowdfunding platforms to determine customer interest, have all contributed to the growth of women’s health as a category over the years. Additionally, a more empowered population that demanded technology to satisfy their own needs, gave rise to these products. Willow will now have the task and a chance to determine whether it can eventually turn them into a profit.
“We want to show that femtech products are not only great stories, but great businesses,” Willow Willow CEO Sarah O’Leary added.
