Flo Raises $50M Series B to Enhance Fertility Tracking

Flo Secures $50 Million in Series B Funding

Flo, a period-tracking application specializing in fertility insights, has successfully completed a $50 million Series B funding round. This investment brings the company’s valuation to $800 million, demonstrating the increasing investor interest in women’s health technology.

Company Growth and Funding History

Established in 2016, Flo initially secured a $1 million seed investment during its first year of operation. To date, the startup has raised a cumulative total of $65 million. The recent Series B round was jointly led by VNV Global and Target Global.

Expanding User Base and Subscription Model

Flo’s user base has expanded to approximately 200 million individuals worldwide. A significant portion of these users subscribe to access premium content and features beyond the core period tracking functionalities.

Leveraging Machine Learning for Personalized Health

The application utilizes machine learning algorithms to provide users with tailored cycle tracking and predictions. It also delivers personalized health insights and real-time health alerts, all based on symptom data inputted by its extensive user community.

Originally focused on period tracking, Flo now positions itself as a proactive healthcare resource for women. It aims to connect users with “science-backed content, expert-led courses and accurate cycle predictions”.

Increased Competition in the Femtech Space

The rise of women-centric applications, such as period trackers, has led to heightened competition. Apple, for instance, integrated cycle tracking into its native iOS Health app in 2019. Consequently, femtech companies like Flo must offer more than basic functionality to attract and retain users.

Subscriber Growth and Revenue Targets

Flo’s current content and marketing strategies appear to be effective. The company reports a fourfold increase in its active subscriber base over the past year, reaching 1.5 million in August 2021. It is projecting to achieve a $100 million Annual Run Rate by year-end.

Freemium Model and Data Collection

While Flo’s primary revenue stream is subscription-based, a freemium version of the app is also available, offering basic period tracking features. All versions of the application are capable of collecting a broad spectrum of data from users.

This data encompasses sensitive health information related to menstrual cycles, fertility, and pregnancy intentions.

Data Privacy Considerations and Disclosure

According to its iOS App Privacy disclosure, the app may associate various data points with the user. These include search history and contact information. The disclosure also indicates that Flo’s app may track user location, purchases, usage data, and identifiers to connect activity across third-party applications and websites.

Extensive data capture is anticipated given the app’s provision of personalized health predictions.

Past Privacy Concerns and FTC Settlement

However, some of the data collection practices appear to be linked to marketing initiatives rather than solely health-related purposes. Flo has previously faced scrutiny regarding its data handling practices.

The company’s data collection and sharing practices drew attention from the Federal Trade Commission following a 2019 report by the Wall Street Journal. The report analyzed data-sharing habits of several apps and revealed that Flo was transmitting in-app activity – such as period status or pregnancy intentions – to Facebook, despite assurances of user data privacy. 

Resolution with the FTC and Ongoing Compliance

In January, Flo reached a settlement with the FTC regarding these allegations, without admitting any wrongdoing.

As part of the settlement, a banner is currently displayed on the company’s website linking to a legal statement. This statement details that between June 30, 2016, and February 23, 2019, the app shared user-related identifying numbers alongside period and pregnancy information with third-party adtech companies, including Facebook, Flurry, Fabric, and Google, for analytics and measurement purposes. 

The FTC settlement also requires Flo to undergo an independent review of its privacy practices and to obtain explicit user consent before sharing health information. The website statement reaffirms this commitment, stating that no health information will be shared without user permission.