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Exclusive: Posterity Health snags $7.5M seed

Jan 17, 2023
Illustration of a quarter surrounded by sperm.

Illustration: Shoshana Gordon/Axios

Posterity Health, a digital male fertility treatment provider, has raised $7.5 million in seed funding, the company tells Axios exclusively.

Why it matters: Employers continue to beef up fertility benefit offerings, and many major fertility benefits management companies have expanded to cover male infertility services, CEO Pam Pure says.

Details: The round was led by Distributed Ventures, with participation from FCA Venture Partners and WVV Capital.

  • Funds will be used primarily for hiring reproductive urologists — a scarce commodity with only about 200 practicing in the U.S., CEO Pam Pure says.
  • Fresh capital will also finance further development of the company's digital platform, which facilitates at-home assessment and testing.
  • Pure declined to disclose company valuation or revenue.

How it works: Posterity Health's digital health platform offers virtual medical appointments, at-home diagnostic capabilities and in-person visits to assess fertility status.

  • Posterity Health offers sperm preservation, semen analysis, diagnostic workups, pregnancy lost consultations, vasectomy reversals and gender-affirming care.
  • Posterity Health works with fertility clinics and obstetric gynecologists to provide services, which are reimbursed by fertility benefit managers, payors and self-insured employers.

What's next: Funds will take Posterity Health through 2024, though the company could target another raise next year to accelerate expansion, Pure says.

State of play: Fertility is a fast-growing segment attracting both venture and private equity dollars, with a handful of players focused on male infertility specifically.

What they're saying: While other market players focus mostly on diagnostic assessment, Posterity Health patients can pursue treatment, according to Pure.

  • "The real difference in terms of what Posterity Health does is once that male has an abnormal semen analysis, we're the place to get treatment and clinical evaluation," she says.
  • Alternatives sites-of-care, such as academic medical centers, often have long wait times and "don't have the ongoing technical and customer connectivity that we have through our platform," Pure adds.

By the numbers: About one-third of infertility cases are caused by male reproductive issues.

  • Pure says 10% of Posterity Health patients who have abnormal semen analysis have an underlying health issue.
  • About 30% of Posterity Health's patients have a hormonal imbalance that can be treated easily, but male partners often skipped the service when it wasn't covered by insurance, she says.

The big picture: Fertility is a broad sector, but Posterity Health and its investors see male infertility as a large-enough addressable market on its own.

  • "Obviously, this could be something that could be integrated into other IVF or fertility companies," says Distributed Ventures managing partner Shawn Ellis. "But there's enough substance here that this easily is a standalone company that can be a big business."

👶 One fun thing: Pure became a grandmother last week, commemorating the birth of the first grandchild since Posterity Health was founded in 2021.

  • "It's such a powerful reminder of how challenging it is for these couples who need treatment to go down this journey and how life-changing having a child really is," she says.

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