HerMD nets $18M to expand menopause services
HerMD, a Cincinnati-based women's health provider, raised an $18 million Series A-1 round to grow its geographic footprint and virtual care offerings, CMO Somi Javaid tells Axios.
Why it matters: HerMD focuses on treating menopause, an area of women's health tech that's attracted significant investor dollars as more awareness is drawn to the condition.
Details: The round was led by existing investor Jazz Venture Partners.
- The round also saw participation from B-Flexion and Amboy Street Ventures.
- This new investment brings HerMD's total funding to nearly $30 million.
How it works: HerMD offers comprehensive women's health care under one umbrella via in-person and virtual care offerings, with an emphasis on menopause and sexual health care.
- All appointments last between 20 and 60 minutes and all medical services are insurance and Medicare based.
- On the platform is HerMD University, where training and education are given to providers — something Javaid says is needed in the field.
What's next: Over the next few months, HerMD plans to open additional locations in the New York metro area and in Nashville.
- The company has four locations and Javaid says waitlists for its brick-and-mortar locations are typically at least 500 patients.
- "Our runway is a lot longer than a year but I anticipate probably fundraising again in about a year or so," she says. "Before fundraising, we were profitable, so we know that this business model works, now it is just a matter of deciding how much growth to go for."
What they're saying: "We have long believed in HerMD's mission to bring menopause and sexual healthcare to women through evidence-based treatment options," says Jazz partner Sharon Knight in a release.
Zoom in: "Our original two clinics were profitable but then we went into growth mode to expand and build more clinics," Javaid says.
- She noted that historically, the clinics break even within nine months of opening.
- "There are operational levers we can pull on our path to profitability," she adds, noting HerMD wants to focus on improving its reimbursement rates.
State of play: Women's health startups last year attracted a total of $1.16 billion, twice the amount they raised in 2020.
- Virtual women's health company Iron Health raised $4.5 million in March.
- Evernow, a telehealth company focused on perimenopause and menopause, collected $28.5 million from a cadre of venture capital firms, tech executives and celebrity backers in April 2022.
- Consumer women's health business Intrinsic raised $15 million in May.