Flo Secures $50M Series B at $800M Valuation Amidst Privacy Scrutiny

Fertility Tracking App Flo Closes $50M Series B, Valued at $800M

TechCrunch reports on Flo, a leading fertility and period-tracking app, securing a significant $50 million Series B funding round, valuing the company at $800 million. This substantial investment underscores the growing investor interest in women's health technology (femtech).

Company Background and Funding History

Founded in 2016, Flo has rapidly grown into a major player in the digital health space. The company initially raised a $1 million seed round in its first year and has since amassed a total of $65 million in funding. The latest Series B round was co-led by VNV Global and Target Global, signaling strong confidence in Flo's market position and future growth.

User Base and Product Evolution

Flo boasts a massive global user base of approximately 200 million users. While a significant portion of these users access the app's core period-tracking features for free, a growing number subscribe to premium content and advanced functionalities. The app leverages machine learning to provide users with curated cycle tracking, personalized health insights, and real-time health alerts based on tracked symptoms. This evolution positions Flo not just as a period tracker, but as a proactive, preventative healthcare tool for women, offering science-backed content, expert-led courses, and accurate cycle predictions.

Competitive Landscape and Market Strategy

The femtech market is becoming increasingly competitive, with major tech players like Apple entering the space. Apple's integration of cycle tracking into its Health app in 2019 highlighted the need for femtech startups like Flo to offer more than basic utility. Flo's strategy appears to be working, as its active subscriber base has quadrupled in the past year, reaching 1.5 million in August 2021. The company is targeting an Annual Run Rate of $100 million by the end of the year.

Data Privacy Concerns and FTC Settlement

Despite its growth and product innovation, Flo has faced scrutiny regarding its data privacy practices. The app's iOS privacy disclosure indicates that it may collect a wide range of user data, including search history, contact information, location, purchases, usage data, and identifiers, often to link activity across third-party apps and websites. While extensive data collection is expected for personalized health predictions, some of Flo's data-sharing practices have drawn criticism.

In January 2021, Flo settled with the U.S. Federal Trade Commission (FTC) over allegations of sharing sensitive user health data, such as period tracking and pregnancy intentions, with third-party companies like Facebook, Flurry, Fabric, and Google. This occurred despite marketing claims of user data privacy. As part of the settlement, Flo agreed to display a banner on its website detailing its data-sharing practices between June 30, 2016, and February 23, 2019, and to obtain user consent before sharing health information. The company also committed to an independent review of its privacy practices.

Key Takeaways

Significant Funding: Flo raised $50 million in Series B funding, valuing the company at $800 million.
Market Leadership: The app has a massive user base of 200 million globally and a growing subscriber base.
Product Innovation: Flo utilizes machine learning for personalized health insights and cycle predictions.
Data Privacy: The company has faced FTC action for sharing user data without explicit consent, leading to a settlement and revised privacy practices.
Femtech Growth: The investment highlights the increasing importance and value of women's health technology.

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