Male fertility is an increasing concern, and in response, a startup, Legacy, has raised an additional $7.5M to scale sperm testing and storage. At-home kits are shipped directly to clients and then back to Legacy’s state-of-the-art andrology labs and cryo-storage facilities. While the startup uses hyperbolic language in its marketing, scientists have identified declining sperm counts as a topic of concern.
Key Points
- Legacy recently secured $7.5 million to expand its fertility services, which include sperm testing and freezing.
- The startup also signed contracts to provide services to over nine million veterans.
- The startup cites research suggesting that there’s been a global decline in sperm counts, with a drop of 50% over the last 40 years. Additionally, 1 in 6 couples are now dealing with infertility issues.
- Legacy’s funding round included TRAC.vc, which emphasizes its use of AI for early-stage venture funding.
- High-profile investors from earlier rounds include Bain Capital Ventures, FirstMark Capital, and celebrities like Justin Bieber, The Weeknd, Orlando Bloom, and DJ Khaled.
Legacy’s sperm testing and storage services are aligned with the troubling trend of declining sperm health globally. Their mission is to make these services more mainstream through accessibility and convenience.
The Data
- Legacy’s latest $7.5M funding round was preceded by a $40M round.
- Some studies and reviews argue that the data is insufficient to definitively confirm a worldwide decline in sperm quality. Different studies have yielded different results.
- The issue was first raised in a 1974 paper authored by physicians Raymond Bunge and C. M. Kinloch Nelson, after they observed declining male fertility potential when assessing patients who were seeking vasectomies at their Iowa clinic.
- Back then, the physicians concluded, “Confirmation of our findings would imply that some unknown factor has caused a decrease in male fertility potential as measured by semen analysis.”
- Researchers who have observed a continuation of that trend now characterize it as a public health crisis, potentially reflecting epigenetic changes, caused by environmental or lifestyle factors.
Industry Context
This is the issue of our time. Per recent studies, the average sperm count is declining about 26% per decade. In other words, we’re firmly on the path to sperm count zero AKA ‘spermageddon’, where we are functionally incapable of conceiving without the use of assisted reproductive technologies.
Legacy CEO Khaled Kteily
As male fertility issues become more pronounced, or at least more discussed, the proactive approach of sperm preservation may soon become a standard practice, akin to how egg freezing has become normalized over the past decade. Still, the idea of an imminent “spermageddon” may elicit more of an eye roll, undermining the public awareness campaign that Legacy and its competitors are advancing.
Similarly, Legacy’s recent press release invokes the “AI” buzzword, noting that TRAC.vc’s “algorithm deemed that Legacy had a higher likelihood of becoming a unicorn than 99% of startups evaluated by their methodologies.” An investor believing in their own investment isn’t surprising. Furthermore, the vast majority of investment decisions these days are data-driven; and yet, startups still face unpredictable challenges in dynamic environments.
Moreover, some of the copy on Legacy’s website is awkward, such as the assurance that in long-term storage, “your sperm is monitored 24 hours a day.” The availability of buy now, pay later (BNPL) and monthly financing options, currently highlighted in a banner at the top of the website, raises questions about customers’ financial priorities and how they might factor into this decision. Legacy promotes its services as an “insurance policy.” Overall, the site’s presentation is not that much different than a direct-to-consumer (D2C) startup website selling razors or personal care products, reflecting the desire to make this issue and potential solution more mainstream.
