Are the sperm startups coming now?

Justin Bieber has shown a keen eye for startup investments in the past. The musician has been active as an angel investor since he was 18 and, according to Pitchbook, has invested in Spotify and the unicorn MoonPay, among others.

In 2021, Bieber participated in the Series A financing of Legacy, which, according to its own description, is "the first digital fertility clinic for men." The Boston-based startup had developed a sperm home testing kit, consisting of plastic tubes and a preservative. Patients would be able to send their samples to a lab from the comfort of their own home. There, the sperm would be tested, and the clients would receive a fertility analysis.

Founder Khaled Kteily, a Y Combinator alumnus (YC S'19), is considered a pioneer in the sperm-services-by-mail business and has attracted Bieber, actors Orlando Bloom, DJ Khaled, and The Weeknd, as well as investors such as New York-based early-stage VC First Mark and Bain Capital. A total of nearly $50 million has flowed into Legacy to date.

Kteily has since expanded its offerings: In addition to the tests, Legacy offers "sperm freezing" – the exact equivalent of "egg freezing": For an annual fee, currently between $100 and $150 at Legacy, men can have their sperm samples frozen – or more precisely, cryopreserved. This allows them to access fertile, healthy sperm at a later date if needed to fulfill their desire to have children.

This may sound like a curious idea and a niche. However, Bloomberg Businessweek calls it a "mini-industry" emerging in the US: Several players are already active in the sperm freezing business. What's behind it, however, is not quite so tiny: The business magazine estimates the growing "male infertility market" in the US to be worth four billion US dollars a year.