SAN FRANCISCO — TechCrunch on Monday published an interview with investor Jessica Karr, co-founder of Coyote Ventures, a VC firm focusing on women’s health and wellness.
Karr, who has invested in women’s health ventures like Gabbi, The Beans and Betterleave, offered her thoughts on the sextech sector.
“A lot of folks are uncomfortable with acknowledging sex at all,” Karr told TechCrunch. “I’ve discussed my sextech investments with females at other funds who laughed when they imagined trying to get the deal through their all-male investment committee. A lot of the sextech companies I’ve seen are addressing the gap that most sex-related products were designed by men, with a ‘male gaze’ lens rather than an actual understanding of female pleasure.”
Karr sees sextech currently as “an inclusive space” and praised “many new products that are innovative for gender inclusivity as well as sexual wellness for men.”
She also addressed the “vice clauses” in limited partner agreements (LPAs), which stigmatize investment in sex-related businesses. These clauses vary and may become more restrictive with more institutional investors, she explained.
“Emerging funds have the flexibility to negotiate the scope of the vice clause,” she noted. “While some pornography-related vice clauses tend to be upheld, including in my LPA, my institutional investors acknowledge that our sextech investments are not pornography and the investments are acceptable to them. I do recognize there are some exciting companies innovating in the ethical and inclusive pornography space, and it’s unfortunate that these are more restricted due to the vice clause.”
According to TechCrunch’s Dominic-Madori Davis, funding for the sextech industry has remained “relatively steady” over the years.
Davis reports that sextech startups raised $352 million in 2020 and $422 million in 2021. While the number fell to $275.8 million in 2022, the decline was nevertheless “in line with the general slowdown in venture capital investing.”
This year, according to the article, sextech startups have raised $111.9 million so far, and are on track to match or surpass the 2022 figure.
Ultimately, Karr sees a fruitful future for sextech investments and for social change regarding sexuality, especially as Gen Z consumers play a more decisive role.
“I’m excited to continuously understand more about our bodies,” she said. “There’s a big opportunity to connect more with the biohacking and longevity communities, recognizing how much of a correlation exists between sexual health and overall health.”
The full interview with Karr is available to TechCrunch+ subscribers at TechCrunch.com.
