Investors see big money in infertility. And they’re transforming the industry

Investors searching for a new way to make big money in medicine have hit upon an age-old problem: infertility.

The money isn’t just in treating older women who have spent years trying to conceive. It’s in persuading younger women, still in their 20s, to start worrying about their future fertility now — and to pay for pricey tests and services, such as egg freezing, as a hedge against problems down the road.

Sensing a lucrative market, private equity firms are pouring money into building national chains of fertility clinics. Some are spending on splashy advertising and a deliberate strategy of reaching out to young women who are not yet trying to conceive. Venture capitalists are getting into the business, too; this year alone, PitchBook has tallied more than $178 million flowing into startups developing fertility products, such as a test that promises a credit-score-style rating of a woman’s fertility.

The new investors say they leave decisions about clinical practice to physicians. But they’re nonetheless by standalone clinics.