Coolzen, Dragon's Den, and the Investment Bias: Why Women’s Health Innovations Struggle to Secure Funding

In a recent episode of the BBC's "Dragons' Den," entrepreneur Nitya Dintakurti from London presented her innovative product, Coolzen - a wearable device designed to alleviate menopausal hot flushes.

Despite the device's potential to significantly improve women's health, and the fact it was previously announced as a winner of the Idea Factory 2021 - a competition run by King’s College London’s Entrepreneurship Institute - Dintakurti's pitch did not secure investment from the Dragons.

Interestingly, a subsequent pitch for a hot sauce brand, whose financial proposition was far less inspiring, received much more enthusiastic support, highlighting a persistent disparity in funding, particularly concerning women's health innovations.

Coolzen: A Breakthrough in Menopausal Care

Coolzen positions itself as "the world's first wearable device that automatically detects the onset of a hot flush episode and triggers cooling therapy to provide relief." Utilising continuous body temperature monitoring and a proprietary algorithm, Coolzen identifies the onset of hot flushes and delivers targeted cooling to the nape of the neck - a key thermoregulatory area.

This intervention aims to "trick" the brain into ceasing the body's natural overheating response, thereby reducing both the intensity and duration of hot flush episodes. User data indicates that Coolzen successfully detects hot flushes in over 85% of instances, offering timely and personalised relief without manual intervention.

The Investment Gender Gap in Women's Health

The reluctance of investors to back products like Coolzen reflects a broader trend in the investment landscape, where women's health innovations often struggle to attract funding.

Research indicates that femtech companies with female founders face significant funding biases, securing less capital than their male counterparts. Alarmingly, incorporating advocacy terms such as "women's rights" in funding applications can be detrimental unless the founders are male.

This bias suggests that investors may perceive female-led women's health tech ventures as ideologically driven rather than profit-focused, presenting a substantial barrier to innovation within the sector.

Challenges Faced by Female Entrepreneurs

The challenges extend beyond the femtech industry. Female entrepreneurs across various sectors encounter significant hurdles in securing venture capital (VC) funding.

In 2022, women-led businesses received less than 2% of the UK's multi-billion-pound venture capital investments. This disparity is often attributed to systemic biases within the investment community, where male-dominated environments favour male entrepreneurs and question women's competence. Female founders frequently face inappropriate comments and scepticism, leading to difficulties in securing necessary funds.

Moreover, studies have shown that male investors are less likely to fund female entrepreneurs, a phenomenon known as "investor homophily." This tendency to invest in individuals who mirror oneself exacerbates the funding gap, as the majority of venture capitalists are male.

Consequently, women entrepreneurs often find themselves at a disadvantage, not due to a lack of viable business ideas, but because of entrenched gender biases within the investment sector.

The Impact of Underinvestment

The underinvestment in female-led ventures, particularly those focusing on women's health, has far-reaching implications. It stifles innovation in critical areas that directly affect half the population and perpetuates gender disparities in business leadership and economic participation.

Addressing this issue requires a concerted effort to challenge existing biases, promote diversity within investment circles, and recognise the substantial economic potential of supporting female entrepreneurs.

Initiatives such as the Investing in Women Code aim to bridge this gap by committing financial institutions to improve access to resources for women-led businesses.

However, meaningful change necessitates a cultural shift within the investment community to value and support innovations that cater to women's health and to appreciate the diverse perspectives that female entrepreneurs bring to the table.

Simply, the disappointing (but not uncommon) experience of Nitya Dintakurti and Coolzen on "Dragons' Den" underscores the pressing need to reassess investment practices and biases, as well as to consider how we can seek to amplify and support innovations in women's health, rather than discredit them.

By fostering an inclusive and equitable investment environment, we can unlock the full potential of innovations that address women's health and empower female entrepreneurs to contribute more effectively to economic growth and societal well-being.