Maven Reaches Unicorn Status with Women's Health Focus

Maven's Personal Journey to Unicorn Status

The impetus behind Kate Ryder’s venture, Maven – a comprehensive women’s health clinic and benefits platform – stems from deeply personal experiences. During the initial stages of company development, Ryder personally navigated a miscarriage.

This led Maven to incorporate support services for pregnancy loss and specialized management of high-risk pregnancies, directly informed by Ryder’s own emotional and informational needs during that difficult time.

From Founder to Customer and Back

Subsequently, Ryder utilized Maven’s services throughout her subsequent three pregnancies. She accessed after-hours medical advice, connected with specialists virtually, and even received guidance regarding the preparation for a breech birth.

This unique position – as both the founder and a repeat user – provided Ryder with invaluable insight into the multifaceted nature of parenthood.

Expanding Services Based on Real-World Needs

These insights were then directly integrated into the platform’s offerings, broadening the scope of services to encompass a full spectrum of needs, from fertility support to comprehensive family care.

As a result of this customer-centric approach, Maven is now achieving significant milestones.

Securing $110 Million in Series D Funding

Maven recently announced the successful completion of a $110 million Series D financing round. This round was co-led by Dragoneer Investment Group and Lux Capital.

Existing investors, including Sequoia, Oak HC/FT, and Icon Ventures, also participated, alongside a new investment from BOND.

Oprah Winfrey Joins Maven's Investor Base

Notably, Oprah Winfrey also contributed to this funding round, bringing Maven’s total funding to $200 million.

Reaching a $1 Billion Valuation

This financing round has resulted in a valuation of $1 billion for Maven. This represents a significant achievement, particularly within the women’s health sector and for startups founded by women.

This milestone is a rare occurrence, highlighting the growing recognition of the importance of investing in women’s health and female leadership.

Maven

Following a substantial Series C funding round in 2020 – one of the largest for women’s health companies – Maven has secured further investment after demonstrating significant expansion.

The company reports establishing partnerships with five additional Fortune 15 corporations, notably including Microsoft, and boasts a retention rate approaching 100%. While specific client acquisition figures weren’t revealed, enrollment in Maven’s clinical programs, offered through employers and insurance providers, has increased by 400% year-over-year, indicating a parallel growth in revenue as the company scales.

Maven’s inception in 2014 predates the heightened focus on women’s health spurred by COVID-19. Initially, the company aimed to assist working women with family planning and starting families. It initially targeted employers, offering a benefits platform – a strategy still employed today – allowing women to access networks of specialized healthcare providers.

This approach has proven prescient as organizations re-evaluate their health benefits, particularly in light of the pandemic’s disproportionate impact on women’s workforce participation. Ryder emphasizes that this wasn’t always the prevailing sentiment, recalling the numerous rejections encountered during the company’s early stages.

Over the past five years, Maven has broadened its services to encompass support throughout preconception, pregnancy, and family care. Employers can now provide their employees with access to over 30 different types of healthcare professionals, including OB-GYNs, pediatricians, therapists, and career counselors. Recognizing the potential for choice overload, Maven introduced care advocates – dedicated professionals who assist patients in navigating available resources.

“Individuals who question the importance of telemedicine in this context are likely not fully aware of the patient’s needs,” Ryder stated. “A new mother, especially during postpartum recovery, often has limited mobility and numerous requirements… Telemedicine provides an ideal solution in such circumstances.”

Maven’s network comprises more than 2,000 doctors, caregivers, and specialists, representing over 250 subspecialties, ranging from egg donor consultants to fertility awareness instructors. To date, the startup has served over 10 million women and families.

A key area of development for Maven is the ability to connect members with providers who demonstrate cultural sensitivity and understanding. For instance, Black women experience higher mortality rates compared to white women – a statistic that prompted another startup, Expectful, to adjust its focus.

Ryder indicated that 40% of Maven’s providers identify as BIPOC and collectively speak over 30 languages.

Despite the emergence of white-labeling services that facilitate the rapid creation of telehealth platforms, Ryder affirmed Maven’s commitment to a more deliberate hiring process. The startup currently accepts approximately 35% of provider applications.

“Were we launching today, we might consider [outsourcing] platforms to maintain competitiveness – however, our early start in 2014 allowed us the time to carefully select the providers who align with Maven’s values.”

The increasing competitive landscape underscores Maven’s status as a unicorn, suggesting potential opportunities within women’s health and positioning the company as a potential consolidator for emerging startups in the sector.

A Significant Funding Round

The recent capital raise for Maven represented a pivotal moment, not only in terms of funding but also regarding its board composition. The company’s investor base is notably comprised of women and mothers, a positive trend considering data indicating that almost half of all private companies lack female board representation.

Deena Shakir, a partner at lead investor Lux Capital, revealed that this investment constituted her largest contribution to a startup to date.

Shakir articulated that her investment thesis centers on recognizing women as the principal healthcare decision-makers. She emphasized that a woman’s identity extends far beyond reproductive health. With robustly funded ventures already established in mental wellness and musculoskeletal care – both key employer priorities – Shakir identified maternal health as a crucial, yet often overlooked, area for employer investment.

Maven’s appeal to Shakir stems from its comprehensive approach, a quality she believes is increasingly vital as the market becomes saturated with specialized vendors and solutions, leading to decision fatigue among employers.

“The company’s scope extends beyond maternity, fertility, and pediatric or mental healthcare,” she explained. Maven’s branding is evolving to encompass family and child health, acknowledging male infertility, couples counseling, and inclusivity beyond traditional gender norms, demonstrating a commitment to providing care for all.

Ro’s acquisition of Modern Fertility highlights the growing interest in hormonal and women’s health as attractive opportunities within the digital health sector.

“Ro initially focused on men’s health,” Shakir observed. “I anticipate a future where it becomes the leading women’s health company, potentially making further acquisitions valued at hundreds of millions of dollars.”

Christina Farr, formerly a digital health journalist at CNBC and now an investor at OMERS Ventures (which does not hold a stake in Maven), offered further insight.

During her time as a reporter, Farr frequently encountered the misconception that women’s health was a limited investment category.

“This perspective is both disheartening and demonstrably false,” Farr stated. “To categorize 50% of the population as ‘niche,’ especially considering women are the primary purchasers of healthcare services for their families, is simply short-sighted.”

Farr noted that, to her knowledge, Maven is the only digital health company focused on women’s health to secure this level of funding with a female founder. She also pointed out that another startup in the space eventually transitioned to a male CEO. Looking ahead, Farr believes Maven has the potential to consolidate various point solutions for women and family health, encompassing areas like postpartum recovery and general physical wellbeing.

“While these companies can operate independently, there’s significant value in integrating them into a unified platform,” she said. “Maven could become a central resource, guiding individuals through the diverse landscape of women’s health solutions.”

Kate Ryder, Maven’s CEO, asserts that her personal experiences have shaped her vision for the company, enabling it to remain focused amidst increasing competition and potential acquisition opportunities.

“We are steadfast in our values, our commitment to patients, and the effectiveness of our care model,” Ryder affirmed. “We will not compromise our principles to chase fleeting trends that do not benefit the patient.”