Women’s health technology, often referred to as Femtech, has been a booming sector in recent years, with startups innovating products such as breast pumps, period trackers, and other digital health solutions. Over the last five years, these companies have collectively attracted more than $5 billion in funding. However, despite this investment, competition remains fierce, and market consolidation is now taking shape.
In a significant industry shift, Willow, a San Francisco-based startup known for its wearable breast pumps, has acquired the assets of Elvie, a UK-based Femtech pioneer. Elvie initially made its mark with a smart Kegel trainer before expanding into breast pumps and, more recently, a high-tech bassinet for new mothers.
Elvie’s Financial Struggles and the Deal with Willow
The acquisition comes at a critical time for Elvie, which has entered administration (the UK equivalent of bankruptcy proceedings). Over its 12-year journey, the London-based startup raised more than $186 million from investors such as Octopus Ventures, BlackRock, and Blume Equity. According to , its last reported valuation was $241 million.
Sources indicate that Willow initially approached Elvie with an acquisition offer months ago. However, as negotiations progressed, Elvie’s financial position worsened, leaving the company with limited options.
While specific terms of the deal have not been disclosed, it is understood that Willow is acquiring Elvie’s existing products, technology, and team. However, the 170 employees currently working across Elvie’s London and Bristol offices may not all transition to Willow, as some are already serving their notice periods.
Willow’s Position in the Market
Willow itself has raised approximately $254 million in a mix of equity and debt funding. Investors include NEA and Meritech, and at its peak in 2021, Willow’s valuation reached $256 million. However, like many other startups in the sector, its valuation declined in 2024 as market conditions tightened, forcing it to raise additional capital.
CEO Sarah O’Leary, who took over in late 2023, declined to comment on Willow’s current valuation but hinted that the company might seek additional funding later this year.
Challenges in the Women’s Health Industry
Elvie’s financial troubles reflect broader challenges in the women’s health technology sector. The global Femtech market is estimated to be worth $60 billion in 2025, yet startups face several hurdles:
- Difficult Exit Opportunities: Many later-stage startups struggle to find acquisition partners or IPO opportunities.
- Competition from Cheaper Alternatives: The market has been flooded with lower-cost competitors, making it hard for premium brands to maintain dominance.
- Data Privacy Concerns: Recent incidents, such as the 23andMe data breach, have heightened scrutiny on how health tech companies manage sensitive user data.
- Hardware Challenges: Developing and scaling hardware-based products—such as smart breast pumps—remains costly and complex.
Willow’s Vision for the Future
With this acquisition, Willow aims to expand its footprint in the Femtech space and become a consolidator in the industry. If exit opportunities remain limited, scaling through acquisitions could be the best strategy.
The rise of cloud computing, smartphones, and AI-powered analytics has made it easier for startups to build digital health solutions for women. However, profitability remains elusive for many players in this space.
For Willow, acquiring Elvie is not just about expanding its product line—it’s a step toward building a sustainable business in women’s health tech. Whether this move will lead to long-term success remains to be seen.
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