Last week women’s health app Flo Health revealed it had raised £156m (£200m) in a Series C investment from General Atlantic which valued the business beyond $1bn.
It meant that Flo became the first purely digital consumer women’s health app to achieve unicorn status.
However the joy was short-lived when one of the co-founders of Female Invest, which is on a mission to close the financial gender gap, took to social media to say the first women’s health app to achieve unicorn status was “founded by men, led by men and funded by men”.
Anna-Sophie Hartvigsen wrote: “If this doesn’t show you everything that’s wrong with the ecosystem, I don’t know what will.”
The story has attracted a diverse range of views from around the world and we’ve selected some of the comments below.
Criticism of male co-founders is unfair
Sheryl Cuisia is the co-founder and CEO of The Engagement Appeal, which is a hub for inclusive investor relations.
She said: “I run a shareholder engagement organisation that promotes inclusion of ALL individuals in capital markets and I must say I was disappointed by the Flo-bashing by Female Invest.
“Flo was founded by two Belarusian brothers in 2015 at a time when NO period-tracking app existed or was as good as what they created.
Does it matter that newest FemTech unicorn was founded by men?
“Let’s also remember that the brothers created an app FOR WOMEN within a country that puts women second at best. I have been using the app for years and depend on it.
“In their posts, Female Invest said: ‘Raising money as a female founder is close to impossible.’ Didn’t their three female co-founders just raise £8m and break all sorts of records according to them?
“Chief, the female-led networking business raised $100m and is a unicorn but has been criticised previously for ‘white feminism’.
“Disappointing therefore that Female Invest chose to approach this positive news in the way they have, as it opens many questions and concerns.
“I have not looked closely enough at the reactions to the dozens of posts that they released about their successful raise to see if anyone has complained about them raising what they raised because they are white. See what bashing results in? More bashing. My view thought is that Female Invest success is merited.
“It’s a shame that they have chosen to attack a milestone achievement for FemTech rather than celebrate this and the ALLYSHIP of men in the advancement of human feminine health.”
Led by women with male founders
Amy Wild is the CEO of Basecamp Skills, and said while the wider point about the tech ecosystem was valid she didn’t think the criticism of Flo Health was fair
She added: “Let’s not take away the fact that the majority of the senior leadership team are women, I’d argue it’s led by women with male founders.”
C-suite roles are dominated by men
Ana Catarina Miranda is a sales systems manager at Remote in the Netherlands.
She said: “I’m a Flo user and love their product, so I did get mixed feelings while reading Anna-Sophie Hartvigsen’s publication, but appreciate it because it got me thinking and took me out of my comfort zone.
“A quick look on Flo Health’s website revealed four of the five people on the company’s medical and leadership team are women, including chief medical officer Anna Klepchukova. Meanwhile 10 of the 17 names on the firm’s scientific advisory board are women.
“These stats are definitely important, and I was happy to find it to be true for the content and the scientific areas.
“However, the same is not valid for the leadership in the highest positions at the company (C-level) that seem to be mostly occupied by males, which is disappointing and noteworthy.”
Funding inequality does matter
Tech expert and keynote speaker Dan Sodergren said: “I might change the million to a billion. And I might be hated on in the world of LinkedIn. But yes it does matter if they are selling their brand on being made by women for women.
“But making FemTech product doesn’t need to be made by any gender to be real or really good. It sadly would have a much better chance at funding at any stage if headed up by men. That’s the sad part.”
More women investors are needed
Tara Attfield-Tomes is the founder of The 51% Club, which aims to make the West Midlands the best place for female entrepreneurs to thrive.
She said: “It’s commendable that Flo has managed to secure this investment and signals to other investors that FemTech has growth potential. My hope is this opens the door for more female-led innovation to receive the funding needed to scale.
“However men funding men matters. Not enough women holding the purse strings matters.
“Women still only receiving 2 per cent of VC money is a huge problem. The dial just isn’t moving – and it’s even more bleak when you add intersectionality.
“Women still face so much bias and yet, there’s research to indicate that the lucky ones who do actually get funding deliver higher revenue relative to the amount invested. It goes back to not just being the right thing to do, but a sound business decision.
“I also think part of the issue is what this signals. If Flo was the latest FemTech unicorn it may not enrage people in the same way as it being the only FemTech unicorn. For centuries men have profited off women, and we’re now seeing this play out in the women’s health space. That’s why it matters, in my opinion.
“That said – the wider argument doesn’t take away from Flo’s achievement but it does signal the desperate need for more investment to reach female-founded and female-led ventures.”
Mixed gender leadership is needed
Azfar Haider, founder of the R3 Framework, said: “Personally, I believe it’s very important for a company to have a mixed gender leadership team right from the start or soon after especially by Series A. Having both genders brings a natural balance of the yin and yang which is important for the employees as it grows and for decision making.”
Why did men start a period app?
Elizabeth Bernard is a brand consultant at ECB Consulting, in New York, and said: “I root for any and all progress in women’s health. But yes, I’m also bothered by the inequity in funding.
“Something I’ve been learning more about. Related: Is anyone else scratching their heads about a period app started by men? Why are they the ones stepping forward to lead what is a decidedly female health experience?
“While I truly appreciate there are women involved, I think we’ll be making even more progress when women are actually owning this story.”
Only male founders can succeed in FemTech
Following up on her earlier comments Anna-Sophie Hartvigsen said: “The reason why it matters, is that Flo is not the ‘newest’ FemTech unicorn. They are the ‘only’ FemTech unicorn.
“There’s nothing wrong with male founders succeeding in FemTech but there’s a lot wrong with the fact that only male founders can succeed in FemTech.
“Female founders are still discriminated heavily at every step of the funding process.
“As a result, they aren’t able to raise and scale companies to the same extend – even in areas concerning female health. This is where the frustration comes from.”