Sexual wellness has long been stigmatized, contributing to a previous lack of investor interest. But the space is gaining traction as it becomes integrated into a more holistic care model.
Sexual wellness has struggled to shed its “taboo” label.
The market has faced difficulties gaining traction with institutional investors while combating a mainstream perception of being considered “niche.”
However, we are starting to see a shift in investor interest as broader discussion of sexual wellness ticks up. The current pandemic may also impact this space — retailers are already reporting increased interest.
Last year saw a spree of early-stage financings in sexual wellness, including deals to the following startups:
- Coral, which develops a digital guide to personalized sexual intimacy, raised $3M from Freestyle Capital, Plug and Play Ventures, and Tom Williams.
- Dipsea, which offers a subscription-based app for erotic stories catered to women, raised $5.5M from investors such as Thrive Capital and Bedrock Capital.
- Lora DiCarlo, which develops personal massagers for women, raised $2M in a round led by Oregon Opportunity Zone Limited Partnership.
Alongside these deals, sexual wellness applications are being highlighted as part of a holistic care model for women. This aligns with the broader trend towards a more integrated approach to preventative health.
One example here is Rosy, which helps women tackle low libido through its collection of digital content. It has partnered with 2,500+ healthcare providers to recommend its app to their patients and create content. The startup also plans to launch Rosy Telehealth, which will connect its users to providers with expertise in sexual health. Rosy raised a $1M seed financing round in February.
For more insights and data, check out CB Insights’ client-exclusive Women’s Health Trends To Watch In 2020.If you aren’t already a client, sign up for a free trial to learn more about our platform.