Our Investment In Fertilidad Integral
Around the world, more and more couples are struggling to get pregnant due to increasing rates of infertility. There are several reasons for this, including social, cultural, and environmental factors like rising pollution levels and poor public health. Take obesity, for instance—obese women are three times more likely to face infertility issues compared to those with a normal BMI. Infertility also tends to increase with age, and nowadays, many women are choosing to delay motherhood due to positive societal changes like better access to education and career-advancing opportunities. In 2022, the median age for a woman to have her first child was 30.9, up from 28.6 in 2000. Today, about 13% of couples struggle to get pregnant when the woman is 30 or younger, and that jumps to around 22% for women aged 31-39. With infertility rates on the rise worldwide, there's a growing demand for fertility services like IVF, egg and embryo freezing, and other wellness services.
The global market size for fertility services was valued at $54 billion in 2023 and is estimated to grow to $90 billion by 2027, representing a ~14% CAGR. At the heart of this growth is general awareness and de-stigmatization of Assisted Reproductive Technology (ART). According to a new Pew Research Center survey, 42% of adults in the US say they’ve used fertility treatments or personally know someone who has, up from just 33% five years ago. Consequently, wider adoption has destigmatized ART and cycles have grown dramatically. ART cycles in the US grew ~11% annually from 2011-2021, largely on the back of the growing ~$5 billion IVF market in the US. In addition to widening awareness, changing legislation pertaining to the LGTBQ+ couples has also caused the group to be a strong adopter of ART. With 16% of same-sex couples raising children, IVF is an increasingly popular option to achieve this goal.
Despite increasing demand, fertility treatments remain incredibly expensive and inaccessible to the majority of the population. In the US, the cost of one IVF cycle is $20,000, and with most women needing to undergo multiple cycles before they get successful results, the average cost is typically $50,000 in total. While there is a movement by state legislation to help cover the gap for women, only 21 states require private insurers to cover infertility treatment, including 14 with IVF coverage. Even then, treatments still typically require thousands in out-of-pocket payments. Fertility benefits are also increasingly important to employees. A Carrot survey of 5,000 employed individuals living in Canada, India, Mexico, UK, or the US and actively planning or building a family found that 65% of respondents said that they would change jobs to work for a company that offers fertility benefits, and 42% said that it would be a “deal-breaker” if these benefits were not offered at a job. However, employers are still slow moving in their adoption of these benefits, and only a select number of employers currently offer the desired IVF benefits.
Given the constraints on the accessibility of fertility services, treatment supply has not effectively met demand. The global fertility market is fragmented and lacks major regional players. For instance, in the US, the largest five players only account for ~20% of cycles performed. The absence of a dominant incumbent combined with growing consumer demand creates a compelling opportunity for new, innovative startups to disrupt the fertility industry and democratize services. This movement has already begun: in the private market, fertility-tech companies raised $854.5 million between June 2022 to June 2023, despite funding for other healthcare verticals plummeting (PitchBook). Notable players include fertility service provider Kindbody, which has raised over $350 million in venture funding and aims to build high-quality comprehensive fertility clinics across the U.S. with an emphasis on high efficacy IVF. Carrot has also raised over $115 million in venture funding to provide employers with personalized fertility benefits for their employee’s needs.
Most of the venture-backed fertility tech companies innovating in this space operate in the US or other western countries, presenting a strong market opportunity in regions such as Latin America where there is also high demand for fertility services. Today, LatAm only accounts for 6% of the global fertility service market share despite high demand from the population, with an estimated 5 million people of reproductive age struggling with infertility. Similar to other regional markets, fertility services in LatAm are highly fragmented, with 94% of the 175 total clinics operating independently as single location businesses. The reliability of results ranges across the clinics, and although some are effective, the lack of a recognizable brand name creates widespread uncertainty for consumers.
Fertilidad Integral (FI) is building the first comprehensive and affordable fertility platform in LatAm. Through their growing network of clinics in Mexico, they offer a wide range of fertility treatments such as IVF, egg and embryo freezing, and an egg and sperm bank. FI is building a brand that consumers can trust with lab results that are at or above all industry benchmarks set by the European Society of Human Reproductive and Endocrinology, qualifying their treatment as equal or superior to clinics in the US and the rest of the world. In addition to top-tier fertility treatment, FI takes a human-first, highly individualized approach to working with each patient. To ensure that the patient has a positive experience, they offer wellness solutions, telehealth for at-home care, and financing assistance. The model is completely holistic, intended to support the patient physically and mentally as they undergo treatment. Finally, FI has also developed a capital efficient, scalable model that allows them to offer treatments such as IVF, egg freezing, and IUI for ⅕ of the average cost of those treatments in the US. With a reliable brand consumers can trust, best in class results, and affordable services, FI aims to democratize access to fertility services in LatAm and globally through opportunities with medical tourism.
Driving FI’s growth is an expert team, led by CEO Daniel Madero. His vision for the company is clear: “At FI, we combine cutting-edge technology with a human-first treatment style to give our patients a best-in-class experience as they look to start their family. As we open new clinics and expand our geographic reach, our ultimate goal is to position FI as the go-to, trusted provider for fertility services in LatAm and beyond.”
At Interplay, we believe that growing rates of infertility will continue to be a global issue and that innovation in fertility technology is necessary to increase access to these treatments and services. We are proud to support disruption to the fertility market as investors in Fertilidad Integral’s Seed and Series A rounds. Over the past few years, we’ve been continuously impressed by the team’s commitment to expanding access to high-quality and affordable fertility treatment in LatAm. We’re excited to witness the next phase in their journey as they continue to build out their network of clinics, strengthening their reputable brand and increasing the number of patients they have the capacity to serve.