The Business of Health

The State of U.S. Health: A Growing Crisis & The Business of Solutions

America's obesity epidemic is reaching alarming levels, with over 42% of adults classified as obese—a figure that's doubled since the 1980s. This crisis fuels skyrocketing healthcare costs and increased risk for chronic diseases like diabetes and heart disease, now costing the U.S. economy over $1.7 trillion annually in medical expenses and lost productivity.

Yet, innovation is rising to meet the challenge. Noom, with its AI-driven behavioral coaching, is pushing intuitive eating into the mainstream, while WeightWatchers is integrating prescription weight loss medications into its platform. Meanwhile, Him & Hers is making waves with GLP-1 weight loss drugs—its Super Bowl ad, though controversial, highlights the growing demand for medical solutions. Pharma giants like Eli Lilly and Novo Nordisk are capitalizing on this trend, with their blockbuster weight loss drugs Wegovy and Mounjaro seeing skyrocketing sales.

Beyond tech and pharma, fitness is becoming more communal. The rise of pop-up fitness communities and health-driven social gatherings is shifting fitness from an individual pursuit to a shared lifestyle. Brands like F45 Training and Orangetheory are leveraging data-driven group workouts, while startups like Strava and WHOOP are building online health communities centered around performance tracking. Even corporate wellness is evolving, with companies like Gympass providing global employees access to a diverse range of fitness and mental health resources.

The $2 Trillion Wellness Market: Where’s the Money Going?

The U.S. health & wellness sector has officially hit $2 trillion in annual spend, a testament to the country’s prioritization of health despite economic uncertainty. Here’s where the dollars flowed in 2024:

• Healthcare & Pharmaceuticals: $1.2T+ spent on treatments, drugs, and insurance.

• Fitness & Wellness: Over $500B poured into gyms, wellness retreats, and health tech.

• Mental Health & Preventative Care: An expanding segment, now surpassing $200B.

Looking ahead, consumers are becoming more strategic about health spending, favoring preventative solutions and digital-first care models. Expect growth in areas like remote health monitoring, functional fitness, and AI-driven diagnostics. Companies like Teladoc Health are leading the charge in telemedicine, while startups like Levels Health and InsideTracker are tapping into the growing interest in personalized nutrition and biomarker testing. Additionally, the rise of longevity-focused companies, such as Altos Labs and Human Longevity, Inc., indicates a shift toward investing in extended healthspan solutions.

The New Era of Sports: Viewership Boom & Investment Potential

Sports are no longer just a pastime—they're an expanding economy. Women’s leagues are surging, with new teams and leagues launching at a record pace. The WNBA is seeing double-digit viewership growth, Major League Rugby (MLR) just inked an ESPN deal, and pro volleyball is gaining traction with national broadcasts.

The takeaway? Investors should pay attention. New media rights deals are opening doors for sports historically left out of primetime. With streaming services hungry for content, emerging leagues represent a high-upside opportunity. The NWSL recently secured a record-breaking media rights deal, while the PWHL (Professional Women’s Hockey League) is poised for substantial growth. Meanwhile, streaming platforms like DAZN are increasingly betting on niche sports, signing an exclusive global OTT deal with the European League of Football (ELF).

Additionally, new investment in fan engagement tech, such as Sorare’s fantasy sports platform and investments in AI-powered sports analytics by companies like Second Spectrum, are reshaping how audiences interact with live sports. The rise of athlete-driven content, exemplified by ventures like Players’ Tribune and Underdog Fantasy, is also shifting the sports media landscape.

📰 Other News:

• 🧖‍♀️ Equinox Hotels launches menopause spa treatments.

• 👀 SportsPro unveils the 20 sports tech startups to watch in 2025.

• 🏀 NBA Launchpad selects five startups for its fourth cohort: OneCourt, Somnee, SportIQ, Trashie, and VReps.

• ⚽️ Major League Soccer expands its partnership with IMG.

• 🥅 DAZN signs an 8-year global deal to broadcast the European League of Football (ELF).

• 🏃‍♂️HOKA launches a pop-up at Fashion Walk, Causeway Bay, for its ultra-cushioned road-running shoe.

• 🛒 Pop Up Grocer is coming to Austin, TX, this March.

• 🍫 Quest Nutrition unveils its new protein bar range, Quest Overload.

💸Money Moves:

Wellness:

• 🥛 Fairlife has become Coca-Cola’s fastest-growing U.S. brand, now valued at $7.4B.

• 🛏️🏎️ Eight Sleep lands an investment from F1 star Charles Leclerc for its smart mattress tech.

• 🥭 Gutzy Organic, a prebiotic snack brand, raises $4M in equity funding.

• 👟 Brooks Running closes 2024 with record revenue, up 9% YoY.

Human Performance:

• 🏃Irish sports analytics startup Output Sports secures $4.6M in pre-Series A funding.

• 📺🏈 Fox’s Super Bowl ad slots went for $8M+ each.

• 🎾💰 Cartan Capital, led by ex-tennis pro CiCi Bellis, is raising $40M for sports & health tech investments.

• (insert pickle emjoi…) Pickleheads, an Atlanta-based pickleball networking platform, raises $2.5M in seed funding.

• 📹 Hudl acquires Balltime, expanding its cloud-based video & data offerings.