The Sex Tech Industry: Breaking Down Taboos and Finding Funding
Despite the potential for technology to revolutionize various industries, the sex tech industry remains largely overlooked. This neglect is surprising, given the significant impact that technology can have on improving human relationships and experiences. In many parts of the world, discussing sex is still considered taboo, and as a result, funding for the industry is scarce.
Investors: A Crucial Role in Shaping the Industry
Investors play a crucial role in shaping industries by providing the necessary capital to help businesses grow and innovate. However, in the case of the sex tech industry, investors have been hesitant to invest due to various reasons. One reason is that many investors have vice clauses in their limited partner agreements (LPAs), which dictate where they can invest their partners’ money. Unfortunately, sex is often high on this list.
A Closer Look at Funding Trends
While funding for the industry has not been robust, it’s essential to note that the numbers are not as bleak as they seem. According to PitchBook, sex tech startups raised $352 million in 2020 and $422 million in 2021. Although funding fell to $275.8 million last year, there is a promising trend: sex tech startups have already raised $111.9 million this year.
A Shift in the Market
It’s essential to acknowledge that the market is shifting towards a more open and accepting environment for the sex tech industry. Some investors are not afraid to venture into this space, even with the presence of vice clauses. Jessica Karr, co-founder of Coyote Ventures, invests across various women’s health and wellness sectors. She has invested in companies like Gabbi, The Beans, and Betterleave.
An Interview with Jessica Karr
I had the opportunity to speak with Jessica Karr about her views on the sex tech industry, its role in women’s health, and the potential for growth.
TC: Why do you think the sex tech industry is often overlooked?
JK: Human nature is a significant factor. Many people are uncomfortable discussing sex, which can make it challenging to secure funding. However, I’m optimistic about the future of the industry.
The Role of Sex Tech in Women’s Health
Sex tech has the potential to significantly impact women’s health by addressing issues related to pleasure and intimacy. Karr notes that many products have been designed with a "male gaze," which can be alienating for women.
Breaking Down Taboos
The sex tech industry is not just about creating innovative products; it’s also about breaking down taboos and changing societal attitudes towards sex. By discussing these topics openly, we can create a more inclusive environment for people to explore their desires and needs.
Future Growth and Opportunities
As the market continues to shift, there will be opportunities for growth and innovation in the sex tech industry. Karr believes that with the right funding and support, companies in this space can achieve significant success.
Conclusion
The sex tech industry is often overlooked due to societal taboos and vice clauses in investor LPAs. However, there are promising trends and a growing interest in investing in this space. With innovative products and open discussions about sex and intimacy, the future of the industry looks bright. As the market continues to shift, we can expect to see more investment and growth in this sector.
Related Topics
- Biotech & Health
- EC Future of Work
- EC Venture Capital
- Sex Tech
- Startups
- VC Office Hours
- Venture
- Venture Capital
Author Bio
Dominic-Madori Davis is a senior venture capital and startup reporter at TechCrunch. She can be reached on Signal at +1 (646)-831-7565.
This article provides an in-depth look at the sex tech industry, its funding trends, and the potential for growth. It highlights the crucial role of investors and their willingness to break down taboos and invest in innovative products. With a focus on women’s health and wellness, this industry has the potential to revolutionize the way we think about intimacy and pleasure.
Additional Resources
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