By Pietro Decio, Jared Young

Roughly one in eight American couples struggles with infertility. Yet IVF, the most effective treatment for many patients, remains financially out of reach for most of them. A single cycle in the US costs an average of $23,500. Given that most patients need more than one cycle to achieve a live birth, the true cost approaches $50,000 per child. That is roughly 70% of the median American household’s post-tax annual income.

As a result, IVF is severely underutilized in the US compared to peer countries. Among Americans who say they or their partner have ever needed fertility care, only 14% report receiving IVF. The U.S. performs fewer than one-third of the IVF cycles per capita seen in countries like Australia or Spain. The European Society of Human Reproduction and Embryology (ESHRE) estimates population-level demand for IVF at roughly 3,000 cycles per million inhabitants per year. The U.S. is currently at 922.

Source: Bortoletto et al., F&S Reports (2023)

When we met the team at The American Baby Company (ABC), we saw an opportunity to rethink how fertility care is delivered in the US from the ground up. Today, we are excited to announce that Tower Research Ventures co-led their seed round, alongside Wormhole Capital.

Solving the Cost Problem

The U.S. is the world’s most expensive IVF market. A single cycle absorbs roughly half the average American household’s disposable income, versus 20% in the UK and 12% in Japan. And cost is not just a barrier – it appears to be the central driver of utilization. International data show that a one-point reduction in cycle cost as a share of disposable income predicts a ~3% increase in usage. In the U.S., IVF initiations fall by roughly half when treatment is not covered by insurance.

ABC is built on a simple insight: most fertility patients are priced out of care because the U.S. fertility system is designed around the most complex cases and priced accordingly. By identifying patients who are well suited to its model up front, and guiding them through a purpose-built care pathway, ABC can deliver high-quality IVF at a dramatically lower cost.

The model rests on two core innovations:

• A reshaped clinical team. Routine procedures shift from a small pool of highly specialized physicians to a broader base of trained generalist clinicians, working under specialist oversight and clearly defined protocols. Specialists move into medical-director roles – setting protocols, supervising care, and focusing on the complex cases that genuinely require their expertise. Each clinician operates at the top of their license. The effective clinical capacity of every specialist multiplies.

• A clearer clinical pathway. Evidence-based protocols, AI-assisted intake, and modern lab workflows replace the manual coordination that drives overhead in a traditional clinic, turning bespoke care into a more consistent and accessible option for many patients. Technology and clearer clinical pathways automate the administrative work, define routine steps more clearly, and give clinicians more time to focus on the decisions where personalization matters most.

By pulling both levers, ABC aims to reduce the all-in cost of IVF treatment significantly. In a market where most Americans are underinsured or entirely cash-pay for fertility care, that turns IVF into a real option for the patients who are priced out today.

The Right Team for the Job

ABC’s clinical foundation rests on Co-founder and CMO Dr. Paul Magarelli, a board-certified reproductive endocrinologist and one of the most prominent voices in the U.S. on expanding access to fertility care. Dr. Magarelli developed the Clinical Fertility Physician (CFP) certification program, which trains generalist clinicians to deliver routine fertility procedures under specialist oversight.

CEO Van Spina brings the operating discipline to match. Van spent his early career as a technology investor at Warburg Pincus before founding an institutionally backed data business in private credit. He has the rare combination of operator instincts, investor judgment, and genuine conviction in the mission.

Looking Ahead

ABC is opening its first clinic in Florida this year. We are thrilled to partner with Van, Dr. Magarelli, and the entire ABC team as they build the next generation of fertility care.

For more information about The American Baby Company, visit https://www.americanbabyco.com .

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