It is Thursday, Well being Tech readers.
Situational consciousness: We have devoted right now’s complete e-newsletter to an investigation by Erin of the buzzy girls’s well being expertise firm FemTec.
1 massive factor: FemTec is not delivering on its mission
FemTec Well being claims it’s “revolutionizing girls’s well being care” via its state-of-the-art digital instruments that supply a snapshot of a girl’s well being.
Sure, however: After buying 5 corporations, FemTec is struggling to ship on its mission and imaginative and prescient — and that has led to allegations the founder has misrepresented its monetary and operational standing and didn’t pay a number of distributors, Erin writes in an Axios investigation.
- The founder, Kimon Angelides, confirms a lot of Erin’s reporting and acknowledges in an interview the corporate has run into rising pains amid a troublesome market.
Particulars: Based on 16 present and former FemTec staff and decision-makers, buyers, unbiased contractors and clients who spoke with Erin, Angelides has overstated the corporate’s progress and misrepresented its investor base.
- He has additionally let down clients who say merchandise don’t work as they need to, 10 individuals, together with present and former FemTec staff, distributors and clients, instructed Erin.
- This story features a evaluate of paperwork together with inside firm paperwork, emails, invoices, Slack and textual content messages and public data.
- Three individuals together with a former worker, an investor and a buyer spoke to Erin on the report. 13 different sources requested anonymity out of concern of retaliation.
- Angelides, a high-profile entrepreneur and serial well being care founder, is thought all through the digital-health neighborhood for creating the units utilized by diabetes-focused startup Livongo, which merged with Teladoc final 12 months in a record-breaking $18.5 billion deal.
- Within the interview, Angelides mentioned he and the corporate try their finest amid difficult market circumstances.
- “I feel we most likely underestimated the quantity of effort it takes to merge corporations,” Angelides mentioned. “It’s rather a lot more durable than we most likely thought it was.”
Why it issues: Traditionally underfunded, women-centered well being tech has turn out to be an more and more profitable sector of digital well being as social change turns into extra entwined with funding.
- In recent times, the business has witnessed one thing of a halo impact, with new entrants hitching their wagons to rising girls’s well being tech stars.