News

• Startup founders and investors say the “sextech” category has never been hotter.
• Half of adult Americans have gotten a COVID-19 vaccine, and that could lead to more sex this summer.
• Venture capital funding is flowing to these startups, as investors warm up to the vice category.
• See more stories on Insider’s business page.

Last year, Cake, a sexual health and wellness startup, sold more coconut oil moisturizing cream made for men’s masturbation than any other product it offers.

Now, as more people get a COVID-19 vaccine and leave their homes to mingle, the company says it’s seeing an uptick in sales of lubricants and cleansing wipes created for couples’ sex. 

Half of American adults have had at least one dose of the vaccine, and that could spell the end of a year of celibacy for many of them. Some are turning to sexual health and wellness startups to have more titillating and safe sex in the summer of love, startup founders and investors say.

The next several months could be boom times for companies in “sextech” and other sexual wellness businesses, from direct-to-consumer lingerie to

birth control
delivery. We spoke to five startups that said they’re seeing consumer spending habits change already, including Everlywell, a company that sells at-home lab testing kits for sexually transmitted infections backed by Lux Capital.

The pandemic made getting it on more difficult for everyone. Many stayed put in an effort to stop the spread of the coronavirus and “flatten the curve,” and they had less sex in isolation, according to a study conducted by sex researchers at the Kinsey Institute at Indiana University. 

“I cringe to read the tweets that they’re ‘vaxxed and waxed.’ But this will truly be a seminal summer,” Josh Wolfe, a startup investor and managing partner at Lux Capital, tells Insider.

‘Hot vax summer’ is coming to tech

Parade is a three-year-old startup that sells candy-colored underwear and bralettes. It’s caught on with a younger generation of consumers who appreciate its inclusive sizing and commitment to using sustainable materials. The company, which just raised $10 million this week, has noticed sales of “style-driven” underwear increase since the rollout of a vaccine, said its 23-year-old founder and chief executive officer, Cami Téllez. In other words, more people are buying underwear that’s meant to be seen.

Téllez believes there will be an uptick in so-called “revenge spending,” where some people will be more willing to splurge after having been under quarantine for more than a year. 

“People are going to want to express themselves again through their clothing and through their sexuality,” she said.

Everlywell is another business that’s growing, according to Wolfe, who’s backed the company. The digital health startup developed an at-home lab testing kit for STIs and can ship a test to customers on a monthly basis for less than the cost of a

Netflix
subscription. 

The startup makes other health diagnostics kits, including COVID-19 mail-in tests that are popular. But its sexual health business has doubled sales since the start of the pandemic, said Julia Cheek, founder and chief executive officer of Everly Health, Everlywell’s parent company.

Cheek says that as young people build habits around coronavirus testing to reduce the risks of dating, they might make testing for STIs part of their routine, as well.

In fact, addressing needs around sex can lead to broader business opportunities, said Varsha Rao, chief executive officer of digital health startup Nurx, known for its birth control delivery service. As more people have begun to meet in person again, the company has not only seen sales of its STI testing kits rise, but also those of its acne treatments and COVID-19 tests, she said.

Investors are getting in the mood, too