Folx Health Secures $25 Million to Expand LGBTQIA+ Healthcare Access

Folx Health is capitalizing on the growth of virtual care to deliver more accessible healthcare services specifically tailored to the needs of the LGBTQIA+ community. The company has recently obtained $25 million in new funding to facilitate its expansion plans.

A Revolution in Community-Focused Care

This investment represents a significant shift in healthcare delivery, concentrating on the unique requirements of distinct communities through access to physicians possessing relevant understanding. Virtual interactions are fundamentally enabling this evolution.

A.G. Breitenstein, founder and CEO of Folx Health, stated, “We possess a thorough understanding of the challenges and emotional distress experienced within the community.”

As a non-binary lesbian and a veteran of the healthcare industry, Breitenstein has directly observed and experienced the inadequacies of the current healthcare system for queer and trans individuals.

Expansion Plans and Service Offerings

Breitenstein indicated that the newly acquired funds will be allocated towards expanding Folx Health’s reach to all 50 states. Furthermore, the company intends to broaden the range of products and services available to the queer and trans community.

“Healthcare is vital for us to authentically express ourselves, whether it involves HRT, PrEP, sexual health, or family creation,” Breitenstein explained. “It’s time to establish a platform designed by and for Queer and Trans individuals, where they feel valued, respected, and celebrated.”

Investor Perspective and Market Opportunity

Bessemer Venture Partners was eager to lead the latest funding round, according to Morgan Cheatham, an investor from Bessemer’s New York office. This enthusiasm stemmed from both the company’s vision and the substantial market size.

“Approximately 2% of the population identifies as transgender,” Cheatham noted. “This translates to a multibillion-dollar market opportunity, extending beyond hormone replacement therapy to encompass a comprehensive healthcare destination for this community.”

Expanding the scope to encompass the broader LGBTQ community, which represents roughly 10% to 20% of the population, reveals a “deca-billion dollar opportunity,” Cheatham added.

Future Services and a Growing Landscape

Breitenstein’s vision includes offering family planning services, comprehensive primary care, and sexual health and wellness services, in addition to the hormone therapies currently provided.

Folx Health is joining a growing number of companies dedicated to addressing the specific health needs of the LGBTQIA+ community. These include Violet, a mental healthcare service; Included Health, an employee benefit service; and Plume, which specializes in transgender care.

Cheatham emphasized, “We were impressed by the vision and approach taken by Folx Health. They are creating a healthcare experience that is affirming and respectful, rather than one that focuses on pathology.”

Broader Implications for Tailored Healthcare

For Bessemer and Cheatham, this investment highlights the broader potential of identifying underserved populations requiring healthcare customized to their unique experiences. This includes companies like Spora Health and Live Chair Health, which concentrate on providing healthcare specifically to people of color.

“Our individual identities – socioeconomic status, race, gender – all influence our interactions with the healthcare system,” Cheatham stated.

Investment Details and Current Availability

Define Ventures and Polaris Venture Partners, previous investors, will also participate in this funding round, which follows closely after Folx Health’s public launch in December 2020.

Folx Health currently offers Hormone Replacement Therapy (HRT – testosterone or estrogen) with monthly plans starting at $59. The company will soon introduce sexual health and wellness services, beginning with Erectile Dysfunction (ED) treatment, followed by at-home STI Testing and Treatment, all designed for the specific needs of Queer and Trans individuals.

Services include unlimited on-demand clinical support, at-home lab testing (for most plans), and home-delivered medications (costs may vary). Currently, Folx Health’s services are available in California, Connecticut, Delaware, Florida, Illinois, Massachusetts, North Carolina, New York, Texas, Virginia, and Washington.

The Folx Library: A Resource for the Community

The company is also launching the Folx Library, a content hub and resource dedicated to Queer and Trans health. Content will be created by Folx clinicians and members of the community.

“Our partnership with Folx marks a pivotal moment,” Cheatham concluded. “It’s difficult to overstate how transformative Folx is for our community, and we acknowledge the contributions of the courageous Queer and Trans individuals who paved the way for this moment.”