INDUSTRY SPOTLIGHT

Sex Tech

Stay updated on the latest innovations and trends in the sextech market. Cater to the evolving demands of modern intimacy and pleasure.

From taboos to openness

The sextech industry is still stigmatized. Yet, the sector is on the upswing due to tech advancements (integration of AI, VR, and AR) and changing societal attitudes. And VCs are responding to the hype—slowly, but investor interest is rising, leading to more funds secured by the startups. Plus, the opportunities for business growth are numerous—offerings aimed at inclusivity and diversity, apps for sexual education, devices facilitating intimate connections over distances, etc.

At Waveup, we know what puts brakes on the progress of sextech and how to tackle it. We assist sextech startups in securing the necessary funding, crafting visually appealing and persuasive sextech pitch decks, creating robust business models, searching for the best M&A opportunities, and turning your ideas into prosperous businesses.

Go deeper into the industry’s nuances through our sextech market research.

3x
The sextech market is projected to triple by 2030.

 

600%
Mentioning ‘sexual wellness’ on Twitter jumped 600% from 2018 to 2021.

Powered by more open attitudes and the shift of sexual topics online
84%

of adults view masturbation as a form of self-care.

5x

The global sales of self-love tools have increased fivefold since 2020.

118 million

Of sextech devices will be in use by 2025.

VENTURE LANDSCAPE

Sex Tech companies have raised $100M in capital in the last 4 years

 
With major deals covering:

  • Connected devices & smart sex toys
  • Sex virtual reality
  • Sex bots powered by AI and machine learning
  • Platforms secured by blockchain

Leading sex tech investors

Write to us to know more

WAVEUP VIEW

The challenges of sextech startups

Despite the rapid industry growth, companies need help with securing funds and gaining market acceptance.

Attracting venture capital

Some people still consider sex a taboo topic. And VCs aren’t an exception; their LPs, to be more precise. Restrictions set by LPs usually concern tobacco, guns, and … sex. Such prudence results in a lack of investor backing within the sextech industry, especially in Europe (in the USA, the market is more mature). Thus, sextech startups should provide the VCs they’re pitching to with the proper terminology. If talking confidently and openly on sex-related topics, investors will start feeling more comfortable and open their wallets more eagerly.

Promotion roadblocks

Using the same advertising channels as other brands is tricky. And again, it’s due to societal stigma and content moderation policies. These restrictions impact customer reach, growth potential, and sextech products and services education. Yet, there are signs that the situation will change shortly. Recently, big players like Apple and Google have loosened their rules, opening app store doors wider to sex-related content.

Privacy concerns

Data breaches and privacy invasions are pivotal given the personal and sensitive nature of sextech solutions. Any compromise in privacy and security can damage a startup’s reputation and lead to loss of customer trust and legal complications. Thus, sextech startups should implement robust security protocols and be transparent in their data handling practices.

How we can help

Startups
Fundraising advisory

From diligent business analysis to storytelling and financial forecasts, we’re helping founders crystallize and structure key business fundamentals and translate them into a compelling investment opportunity.

Investors
Due diligence and portfolio support

Evaluating potential investments, conducting thorough due diligence, and supporting portfolio companies on their new fundraising rounds.

Established companies
Growth hacking

Discovering market opportunities in the market and developing execution strategies to build actionable and scalable blueprints for growth.

WHO WE ARE

Unlocking your next stage of growth

Waveup is a leading global advisory empowering companies to fuel growth, attract investments, and secure strategic partnerships.

We turn data into business insights that drive results, helping companies excel in the competitive B2C and B2B spaces across 50+ verticals, discovering and catalizing opportunities for growth.

Our sex tech investment consulting services

Market intelligence

Fundraising support

Pitch decks

Financial models

Investor research

Growth consulting

Go-to-market strategies

Marketing/sales materials

Design support

Learn more

FAQs

How attractive is the industry to potential sextech investors?

Sextech still remains an investment riddle. On the one hand, the recent statistics show that VCs aren’t turned off by sextech and are ready to pour their money into this sector. Yet, on the other hand, sex-related topics are still taboo in society, influencing investors’ choices.

If you are a sextech startup, how easy is it to raise funding today?

Securing funds for sextech can be tricky due to its sensitive nature. Yet, a well-crafted sextech pitch deck that speaks the value of your solution clearly and confidently can ease investor conversations and boost your funding chances.

How long does it take to create a pitch deck and financial model for a sextech startup?

On average, our team needs two or three weeks to complete all the documents. However, sometimes we may need more time, yet not more than a month, owing to a hectic schedule and project complexity. Contact us to discuss the details individually.

What are the key mistakes sextech startups make in their pitch decks?

Most sextech pitch decks fail to present a robust vision statement and viability of a market entry strategy. Some of them lack coherent investment storytelling. Also, a poor competition slide shows that a startup doesn’t have a complete picture of the market, not knowing how to handle rivalry. All this makes investors doubt the project’s potential, preferring more promising ventures.

How competitive is the sextech market?

Although the modern sextech industry is still developing, it’s already a highly competitive space. And companies need to play smart to stay ahead of their rivals.

What services do you provide for investors looking to invest or already investing in sextech?

We help investors evaluate sextech investment opportunities by conducting in-depth research and presenting valuable insights in a clear, visual format. Plus, we offer comprehensive fundraising services to sextech and related companies in our portfolio.

Do you provide sextech M&A support?

Yes, we do! We can help find and review new sextech M&A opportunities, facilitate initiative by creating CIM documents, value companies, and handle buy-side and sell-side transaction modeling.

Do you make intros to sextech VCs?

Absolutely! If your project aligns with certain criteria like round size, team expertise, and product quality, we can assist you in connecting with sextech VCs. This service is integrated into our extensive investor relations package, which encompasses creating a pipeline of investors keen on sextech, preparing startups for introductory meetings with them, and facilitating communication post-deal.

Do you have available data or research to purchase on the sextech market?

Yes, we do! Our comprehensive sextech market research includes industry reports, competition analysis, etc. We use only reliable data sources to collect the most relevant information for you, such as the industry’s challenges, market trends, and competitive dynamics.

Which growth stage of companies have you worked with in the past?

Our core proficiency lies in helping startups from the Seed to Series B growth stages within and beyond the sextech industry. However, we also assist businesses in Pre-Seed and Series C+ growth stages and forge partnerships with established companies and investment funds.

Industries we work with

Looking to get into sextech? Reach out, and let's talk!

Whether you're looking for fundraising support, outsourced M&A advisory, growth strategy consulting, and presentation design, Waveup is your one-stop shop for that and more. Leave your email, and let's discuss your project!

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