It’s Thursday, Health Tech readers.
Situational awareness: We’ve dedicated today’s entire newsletter to an investigation by Erin of the buzzy women’s health technology company FemTec.
1 big thing: FemTec isn’t delivering on its mission
Illustration: Shoshana Gordon/Axios. Logo: FemTec Health
FemTec Health claims it is “revolutionizing women’s health care” through its state-of-the-art digital tools that offer a snapshot of a woman’s health.
Yes, but: After acquiring five companies, FemTec is struggling to deliver on its mission and vision — and that has led to allegations the founder has misrepresented its financial and operational status and failed to pay several vendors, Erin writes in an Axios investigation.
- The founder, Kimon Angelides, confirms much of Erin’s reporting and acknowledges in an interview the company has run into growing pains amid a tough market.
Details: According to 16 current and former FemTec employees and decision-makers, investors, independent contractors and customers who spoke with Erin, Angelides has overstated the company’s progress and misrepresented its investor base.
- He has also let down customers who say products don’t work as they should, 10 people, including current and former FemTec employees, vendors and customers, told Erin.
- This story includes a review of documents including internal company documents, emails, invoices, Slack and text messages and public records.
- Three people including a former employee, an investor and a customer spoke to Erin on the record. Thirteen other sources requested anonymity out of fear of retaliation.
- Angelides, a high-profile entrepreneur and serial health care founder, is known throughout the digital-health community for creating the devices used by diabetes-focused startup Livongo, which merged with Teladoc last year in a record-breaking $18.5 billion deal.
- In the interview, Angelides said he and the company are trying their best amid challenging market circumstances.
- “I think we probably underestimated the amount of effort it takes to merge companies,” Angelides said. “It’s a lot harder than we probably thought it was.”
Why it matters: Historically underfunded, women-centered health tech has become an increasingly lucrative sector of digital health as social change becomes more entwined with investment.
- In recent years, the industry has witnessed something of a halo effect, with new entrants hitching their wagons to rising women’s health tech stars.