Health Pitch 04: Future Family 🚀

The Problem

Infertility is a growing global issue, with around 1 in 6 people affected worldwide. In the US specifically, approximately 13% of women aged 15 to 49 struggle with infertility.

However, access to fertility treatments is a challenge because of huge costs and inadequate insurance coverage.

For example, a single IVF cycle costs between $12,000 and $25,000, with many individuals requiring multiple cycles to achieve pregnancy.

When is comes to insurance coverage in the US, only 20 states have laws mandating insurance coverage for fertility treatments.

This means the majority of people either choose to pay out of pocket or secure financing through traditional loan providers, who don’t typically offer financing for fertility treatments.

It’s an industry ripe for disruption especially considering the demand for fertility treatments are increasing due to rising infertility rates, delayed parenthood, and growing awareness of assisted reproductive technologies.

The Solution

Future Family is a fertility financing platform that aims to solve this huge financial burden.

Unlike traditional lenders, Future Family integrates financing with concierge style support.

In terms of their financing solutions here’s what they offer:

• IVF Plans: Instead of someone paying $15,000 upfront, their plans would let patients pay $300 - $475/month. This plan would cover clinic procedures, lab work medications and more. The manageable monthly payments and transparent pricing, eliminates financial uncertainty, making fertility care more accessible.

• Egg Freezing Plans: Starting at $150/month

• IVF Insurance: Financial protection for families before starting their IVF. Here’s what they say on their website: “If your IVF is not successful after 2 cycles, you make an insurance claim. You get your money back.”. Each plan has different levels of “coverage” (the amount that is refunded if IVF fails)

In addition to their financing, Future Family also offers solutions that aim to improve patient experience and treatment adherence. This includes:

• Care Match: Helping families find the right clinic for them.

• Financing Consulting: Experts that help explore the range of financing options available.

• Fertility Coaching: Registered nurses who provide one on one guidance through their fertility journey. Especially important for families going through this the first time.

This hybrid model of financial solution paired with hands on support, differentiates Future Family from generic healthcare lenders.

Market & Competitors

The global fertility services market is large and has been experiencing significant growth, driven by factors such as increasing infertility rates, advancements in reproductive technologies, and greater societal acceptance of assisted reproductive techniques.

The global fertility services market was valued at $21.14 billion in 2021 and is projected to reach $90.79 billion by 2031, with a compound annual growth rate (CAGR) of 16.1%.

The US fertility services market was valued at $5.71 billion in 2024 and is projected to reach $8.79 billion by 2033 (CAGR: 13.6%).

The fertility services market can be broken down into 5 main segments:

• In-Vitro Fertilization (IVF): IVF remains the most commonly used fertility treatment. This segment includes all services related to egg retrieval, fertilization, embryo culture, and embryo transfer.

• Artificial Insemination: This focuses on the process of placing sperm directly into a woman's reproductive system, bypassing certain infertility problems.

• Egg/Sperm Donation: Services that provide donors for eggs and sperm, often for couples dealing with infertility due to factors such as age, low sperm count, or genetic issues.

• Surrogacy Services: Agencies and clinics that facilitate the process of using a surrogate mother to carry a pregnancy for individuals or couples who cannot conceive naturally.

• Fertility Preservation (Cryopreservation): This includes the freezing of eggs, sperm, or embryos for future use, typically due to medical reasons, career planning, or personal preference.

IVF is by far the largest and most commonly service due to its high success rate and widespread use.

Future Family competes a few others in the space.

• Other fertility financing players: e.g. CapexMD: Offers specialised fertility financing but no wider care services or sign posting.

• Other general healthcare financing players: e.g. LendingClub Patient Solutions: Provides loans for medical procedures, including fertility, but without personalised fertility support.

• Fertility care providers (who don’t do financing): e.g. Maven Clinic – A telehealth platform offering virtual fertility and women’s health support, but not financing.

Future Family’s moat would therefore come from their specialist understanding of the fertility space which allows them to do fertility specific risk modelling for better loan approvals and lower default rates. But also from integrating care with their financing to improve the patient experience. Their relationships with providers could also create a referral pipeline and a defensible distribution channel.

Business Model

Future Family operates a B2C lending model, earning revenue through:

• Interest on loans: Fixed-rate financing for fertility treatments.

• Membership fees: Additional services such as fertility coaching and concierge support.

• Clinic partnerships: Potential revenue share or embedded financing deals with fertility providers.

Some considerations would be:

• Loan sizes range from $5,000 to $50,000, with repayment terms up to 60 months.

• Gross margins depend on capital costs, but fintech lenders typically target 40-50% gross margin.

• CAC & LTV: Fertility patients are high-intent customers with a strong need for financing, reducing acquisition costs. High loan values also translate to strong LTV.

• Path to profitability: As loan book scales and default rates stabilise, unit economics should improve, increasing cash flow.

Challenges & Risks

There are numerous challenges with business that offer financing:

• Credit risk: Lending businesses are exposed to economic downturns and borrower defaults. Future Family must maintain robust risk assessment models.

• Regulatory risk: Changes in healthcare financing regulations could impact operations, especially if new fertility coverage mandates shift demand.

• Competition: Larger fintech players or insurance providers could enter the space, pressuring margins and customer acquisition.

• Operational complexity: Managing both a lending operation and a fertility support network requires strong execution across two distinct business functions.

Funding & Exit Potential

Future Family has so raised close to $150M from a variety of investors including from Aspect Ventures and Munich Re Ventures.

There are two routes to exit for Future Family when the time comes:

• Acquisition: Potential buyers include major fintech lenders (Affirm, SoFi) or women’s health platforms (Maven, Kindbody) looking to expand into fertility financing.

• IPO: Unlikely, but if Future Family builds a large, diversified loan book, a public offering could be viable, especially as fertility financing gains mainstream acceptance.

Investment Verdict

I believe Future Family presents a compelling fintech-healthcare hybrid play in a high-growth industry with strong demand fundamentals. The unique blend of specialised lending, provider partnerships, and fertility coaching creates a good defensible moat.