Portfolia, a U.S.-based venture capital firm known for its diverse investment portfolio, recently announced the launch of FemTech Fund III, a new investment vehicle focusing on women’s health. This fund, the third of its series, reflects the firm’s dedication to the women’s health and femtech sectors. Founded by Trish Costello in 2014, Portfolia stands out in the venture capital world with its specialized funds targeting areas like women’s health, active aging, and sustainability.
The idea for Portfolia originated from a critical realization by Trish Costello, who noticed a significant gap in traditional venture capital: insufficient investment in women’s health, despite its high potential. This insight, coupled with the rising financial influence of women in the U.S., led to the creation of Portfolia. The firm’s core principle is empowering women, who are increasingly controlling more U.S. wealth, to invest in sectors they deem important. With over 140 companies in its portfolio and a burgeoning network of female investors, Portfolia has made a significant impact in venture capital, managing 13 funds and actively participating in various sectors.
FemTech Fund III represents Portfolia’s ongoing commitment to enabling women to shape the market, especially in traditionally underrepresented areas. With the fund now open for investment, it’s a perfect time to speak with Trish Costello, Portfolia’s Founder. We discuss the inception of Portfolia, the specific challenges and successes of investing in women’s health and femtech, and the ambitious objectives for FemTech Fund III. Our conversation also delves into Trish’s personal motivations and how Portfolia aligns with broader movements in women’s health research.
Could you share with us the founding story of Portfolia and the inspiration behind focusing a fund specifically on women’s health and femtech?
“After years of working in venture capital at CVE Capital Corp and Kauffman, I decided that I wanted to create a VC product that invested in the companies and products that women wanted to see in the world. Everyone told me that I would fail, that there wasn’t a large enough market, and there had never been big winners in the space. However, I saw an opportunity: to create a best-in-class community and culture that united and empowered women to invest in innovation that have outsized potential for returns and impact. And in 2018, I made that dream a reality with Portfolia.”
What sets Portfolia apart from other venture capital firms, particularly in the realm of femtech and women’s health investment?
“Portfolia created the first venture capital product with a sole focus on women’s health in 2018. Today, we are the most active investor in women’s health, across all sub-industries and stages, with over 44+ investments – the first of our kind and leader in today’s market. Some of our investments include the first femtech unicorn, Maven Clinic, as well as EverlyWell, a health testing unicorn. We are focused across all phases of health, and hold positions in Future Family, Hey Jane, Bone Health, xCures, Health Hero, Apollo Neuro, Inherent Bio, Hey Grace, Nest Collaborative, and the first male daily contraceptive, Your Choice. Despite people’s willingness to write off women’s health and the power behind the female dollar, we’ve managed to defy the odds and deliver outsized returns while stimulating lasting impact for the health of women everywhere.”
Can you describe the primary objectives and focus areas of the FemTech Fund III?
“Our Femtech Fund III will give investors the opportunity to support the next wave of innovation in women’s health. Women’s health is a notoriously very understudied and underrepresented segment of health research. One of the biggest obstacles here has been the lack of capital flowing into relevant companies, something that we’re trying to fix with FemTech Fund III. Our goal is to change the way women’s healthcare is invested in. By helping women access their power and influence, Portfolia is able to fund the women’s health innovations that our customers want to see in the world. Specifically, investments will focus on companies addressing all stages and experiences of womanhood, such as mental health, pregnancy, pregnancy loss, fertility, menopause, aging, and more.”
How does this fund differ from the previous two Portfolia FemTech funds in terms of strategy or focus?
“The FemTech Fund III will be continuing the successes of FemTech Fund I and FemTech Fund II. The FemTech Fund I first launched in 2018 as Portfolia’s sixth ever fund and was the first venture capital investment fund to focus on women’s health. FemTech I focused on a range of issues from fertility to telehealth. With 249 women joining the fund over a few months time, and over $3M invested, The FemTech Fund I has been able to invest in companies such as Maven Clinic, Future Family, Everlywell, Madorra, and more. The FemTech II Fund launched in 2020 and expanded upon its predecessor. FemTech II has continued to focus on women’s health, focusing on topics such as wellness across the lifespan, treatments for diseases and conditions specific to women, and non-gendered issues that impact women differently. With over $4M invested, the FemTech Fund II has been able to invest in companies such as XCures and Nest Collaborative. Femtech Fund III will be an extension of this.”
Can you share any success stories or notable outcomes from your previous investments in women’s health?
“With 249 women joining the fund over a few months time, and over $3M invested, The FemTech Fund I was able to invest in companies such as Maven Clinic, the first unicorn dedicated to women’s and family health; Everlywell, a health testing unicorn; fertility financing and care support Future Family which was recently valued at $80 million; the first hormone-free medical device to treat vaginal dryness for postmenopausal women recently granted by the FDA as a Breakthrough Device Designation Status Madorra; the first male contraceptive company in the U.S. YourChoice, and more. The FemTech II Fund launched in 2020 and expanded upon its predecessor. With over $4M invested, the FemTech Fund II has been able to invest in companies such as XCures, the leader in the patient-centric use of artificial intelligence (AI) and predictive modeling and Nest Collaborative, the nation’s first and largest virtual lactation consultation platform. All of the companies we’ve invested in with these funds have proven to be great successes, providing necessary products and services to an under-addressed population with real needs.”
What impact do you envision the FemTech Fund III having on the women’s health sector?
“Despite the fact that women make 80% of the healthcare decisions for themselves and their families, women’s health is underfunded in the U.S. and other countries around the globe. The market is forecasted to be worth $48B by 2027 and is a mature enough space to generate significant returns. However, the majority of healthcare investors are men who often are unaware of opportunities to enhance the gaps in women’s healthcare. Innovations are overlooked, misunderstood, and never brought to market leading to compromised health and wellness for all women. Through the FemTech Fund III, we are aiming to change the way women’s healthcare is invested in. By helping women access their power and influence, we’re able to fund the women’s health innovations that our customers – women – actually want to see in the world. We’re putting the investment power into the hands of the people who actually need/want these products and services.”
How does Portfolia’s vision align with the White House’s recent initiatives in women’s health research? Are there any collaborative efforts or synergies between Portfolia and federal programs aimed at advancing women’s health?
“The White House’s latest initiative aims to improve how the federal government approaches and funds research into women’s health, a very understudied and underrepresented segment of health research. I mentioned previously, but one of the biggest obstacles here has been the lack of capital flowing into relevant companies, something that our FemTech Fund III is actively trying to remedy. The need is there, but the money and the willingness isn’t. That’s why we use our Femtech Funds to give real women the chance to invest in companies addressing the needs and wants of themselves. Put the power in the hands of the people being affected (or ignored).”
What personally motivates you to be at the forefront of investing in women’s health?
“Simply enough: being a woman. The struggles of womanhood affect half of the world’s population, and yet we’ve still barely done anything to address it. Mental health, menopause, fertility and pregnancy, reproductive health, aging. Things that affect our lives every single day are constantly overlooked and misunderstood. Being a woman and going through the motions of the healthcare world is enough to motivate anyone to make a change. And that’s why we’re trying to bring that power into the hands of other women as well, not just me.”
