In the broader startup and tech world, women still face an uphill battle. But there’s one sector where they’re finally starting to gain ground. It’s digital health!
And in Australia, they’re not just gaining ground. They’re building it.
ANDHealth’s 2025 report spotlights this exciting shift. It shows that female founders are making real strides in the digital health sector, a space that sits at the crossroads of two very different worlds: healthcare (traditionally female-led) and tech (still male-dominated).
This aligns with the sector’s explosive growth, where the global women’s digital health market is projected to exceed USD 25 billion by 2035, fueled by a 20.56% CAGR.
Australian digital health: A sector where women are thriving
According to ANDHealth’s The Rising Giant 2025 report, 44% of digital health startups in Australia are now founded by women. That’s a big jump from 35% in 2020, and way ahead of the national startup average of just 27%.
Why is digital health different?
- Lived experience drives innovation: Women, who make up over 70% of the healthcare workforce, are often on the frontlines—both professionally and personally—when it comes to caregiving. This gives them powerful insight into the pain points in the health systems.
- They’re building what they’ve lived through: Many female founders are tackling issues like maternal health, period pain, menopause, and chronic conditions. The areas that have long been under-researched or dismissed.
As Bronwyn Le Grice, CEO of ANDHealth, puts it:
“Diverse teams build better products for diverse populations, and deliver higher returns.”
She’s not wrong. Research shows that for every dollar invested, women-founded startups deliver 78 cents in returns, compared to just 31 cents for male-founded ones.
But the funding gap is real
Funding is where the progress hits the wall.
Despite the rise in women-led startups, they’re still getting less money.
- 36% less funding: Women-led digital health startups raise an average of $320,000 compared to $500,000 for male-led ventures.
- Broader disparities: In 2024, female-only teams in Australian startups secured just 4% of total capital raised, while mixed-gender teams raised slightly better at 13%.
And it’s not just about the dollars. Many women-led companies are stuck in the early stages, struggling to scale or bring products to market.
So what’s going on?
Bias is still baked in
The report points out a tricky truth that adding more women to venture capital (VC) teams doesn’t automatically fix the problem.
That’s because the issue isn’t just who is making decisions; it’s how those decisions are made.
- Investors often gravitate toward familiar industries and founders, which usually means men. Women-led businesses, especially in underrepresented sectors, get overlooked.
- Informal networks matter: Since most VCs are men, and most startup founders they know are men, women are often left out.
- Women face harsher scrutiny: They’re held to higher standards and asked to “prove” their worth more than their male counterparts. Even diverse VC teams can fall into these ingrained biases without actively challenging them.
These are deep-rooted, systemic issues. And unless they’re actively challenged, they’ll keep holding back innovation.
What needs to change
Solving this isn’t just about fairness. It’s about unlocking better healthcare and boosting Australia’s economy.
Here’s what the report calls for:
- Rewire how investments are evaluated, not just who evaluates them.
- Invest in mentorship and support for female founders at all stages.
- Track funding outcomes with a gender and diversity lens.
As digital health becomes Australia’s national investment priority, especially under programs like the National Reconstruction Fund, we can’t afford to leave this potential untapped.
-ANDHealth The Raising Giant 2025 report
It is not only beneficial for women, but also crucial for the future of healthcare if Australia is to utilise digital health as a force for improved treatment and as an economic powerhouse.
Why this matters
This isn’t simply about levelling the playing field or “giving women a chance.” It’s about building better products, for more people, and creating a healthcare system that actually reflects the population it serves.
Female founders in digital health are already showing what’s possible. Now it’s up to investors, policymakers, and the industry to catch up.
With digital health now a national investment priority, Australia has a golden chance to fix this imbalance and reap the rewards. The momentum is there. Now it’s time to accelerate it.
-By Alkama Sohail and the AHT Team
