Health Investment Verticals for the Orlando Magic Venture Challenge

Despite remarkable medical innovations and rising U.S. health expenditures, the health of American adults continues to decline. The Orlando Magic Venture Challenge, powered by LEAD, seeks startups that empower people to move through life in a state of health and wellness across multiple dimensions. Apply now to shape the future of health and well-being.

Health Investment Verticals for the Orlando Magic Venture Challenge 

Despite significant medical innovations, people’s health continues to decline.  

In 2023, healthcare expenditure in the U.S. reached $4.9 trillion, or $14,570 per person. Despite spending nearly twice as much on health as comparable countries per capita, the U.S. has the lowest life expectancy among large, wealthy countries.  

From 1957 to 1959, there were about 9 cases of diabetes per 1,000, a rate of 0.9%. In 2021, less than 65 years later, the number had jumped to 11.6%. Although the two numbers ought to be compared with caution, the trend is clear. In 2021, 38% of American adults had prediabetes, making nearly half of the U.S. population either diabetic or prediabetic. Cancer incidence has also reached unprecedented levels, with projections indicating that new cancer cases surpassed 2 million for the first time ever in 2024. Incidence increased for 6 of the top 10 cancers, and serious cancers are becoming increasingly common among young people under the age of 50.  

The decline in health extends beyond these diseases. Sperm count in western countries have been falling at more than 1% a year for the last few decades. The pattern is reflected across other diseases and biomarkers; in spite of remarkable innovations in healthcare, people are not living healthy, quality lives. 

For the Orlando Magic Venture Challenge, Powered by LEAD, we are looking for startups that can empower people to achieve true health, which is defined by the WHO as “a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity.” Let’s explore key verticals that are shaping the future of health and wellness.

Consumer Health 

An incredibly broad category that touches on many subcategories, from direct-to-consumer diagnostic testing and tech enabled care to wearables, sleep solutions, dietary supplements, and beyond. Consumer health solutions empower individuals actively participate in their health journeys and make informed decisions, with or without insurance coverage.  

Healthcare systems today primarily focus on disease, specialty care, and technology rather than preventive care, with an overemphasis on procedures and drugs and often sidelining preventive measures. In our healthcare systems, health is framed almost exclusively in the negative, and achieving “health” means that one hasn’t been diagnosed with a disease or a major risk factor for disease. A large and growing body of evidence further suggests that at least 19 out of the 23 drivers of health are outside conventional healthcare systems.  

Increasingly, consumers are realizing that health means more than just being free of diseases and symptoms, and in the wake of the COVID-19 pandemic, people around the world are increasingly focused on improving their health and well-being. As a result, consumer health is a multi-trillion-dollar market with many multi-billion-dollar categories, and the growth will only continue. 

As hardware and software solutions continue to improve, an increasing number of companies are developing FDA-cleared solutions, providing consumers with effective solutions for the intended use and allowing startups to tap into a broader market, thereby increasing the total addressable market. 

Another trend is the rise of companies building AI-powered health solutions. These solutions can provide personalized and actionable insights based on the health data consumers share, moving beyond the limitations posed historically by generic web searches.

Holistic Health 

Often operating outside the healthcare system, holistic health views physical, mental, emotional, environmental, social, and spiritual well-being as interconnected parts of overall health. 

Intimate and close relationships play a vital role in human health and a growing volume of medical literature illustrate the healing effects of spirituality on morbidity and mortality. 

In a survey of 19,000 people across 19 countries conducted by McKinsey in 2022, 85 percent of respondents said their mental health is as important as their physical health, and a majority viewed their spiritual and social health as “extremely” or “very important.” Yet, less than 2 percent of physicians and nurses worldwide in 2020 were trained to manage mental health problems, let alone patients’ spiritual and social health. 

As consumers increasingly pursue proactive and comprehensive approaches to their health, holistic health solutions are gaining relevance as a way to address the underlying causes of their discomforts rather than treating the downstream symptoms.  

Financial Wellness 

Seventy three percent of U.S. adults report that the healthcare system fails to meet their needs with cost being the primary reason for skipping or delaying care. Forty one percent of working-age Americans, or 72 million people, have medical bill problems or are paying off medical debt, and the same issue extends to an additional 7 million elderly adults. For cancer patients in the United States, the average cost of medical care and drugs is more than $42,000 in the year following a cancer diagnosis. Two years after a cancer diagnosis, 42.4% of Americans have depleted their entire life’s assets. In 2025 and beyond, one can safely assume that new cancer cases will continue to rise, accompanies by higher treatment costs and increased financial burden on individuals and society as a whole.  

The term financial toxicity was coined to bring attention to the financial distress of cancer on patients and families, but as too many people know, financial toxicity is not limited to cancer. Ultimately, financial distress not only poses huge consequences on both the physical and mental components of a quality life but prevents people from seeking the care they need. 

Large opportunities exist for companies that provide cost-saving health solutions and help consumers effectively navigate the healthcare and insurance systems. 

Food 

Food provides essential nutrients that serve as the building blocks for our cells, and it has a direct impact on our health. High-quality, real, nutrient-dense, and minimally processed food is the foundation of a healthy lifestyle. 

At a time when our food is contaminated with hazardous chemicals and more than 1,500 new synthetic substances are introduced each year, consumers have become increasingly informed and discerning. For premium products, filler-free, hormone-free, and pesticide-free have become almost baseline expectations.  

Increasingly, consumers rely on third-party testing and independent reviews to guide their purchases, making transparency a vital component to building a successful and long-lasting company. While an ingredients list offers some insight, there is a growing need for more comprehensive information. Health-conscious consumers are increasingly interested in understanding the presence of contaminants like heavy metals and the level of microplastics in their food.  

Additionally, there’s a rising interest for knowledge about how different foods impact health individually, and startups are creating solutions for accessible and actionable biomarker tracking.   

However, making high-quality, nutritious food accessible and affordable requires innovation at the infrastructure level. The challenges are significant, particularly in sectors operating on thin margins and long adoption cycles. Despite these hurdles, the potential rewards are significant. Entrepreneurs who successfully address these challenges stand to gain not only financially but also through the satisfaction of improving the health of many communities.  

And More... 

Innovation in health tech extends far beyond the categories that could be mentioned in this short blog. While consumer health solutions are discussed heavily in this blog, we are seeing exciting innovation in many other categories such as AI Services-as-Software selling an outcome or deliverable, relieving teams from routine tasks so they can focus on the patients.  

Seizing the Opportunity 

If your startup is working on solutions that improve the state of human health, we encourage you to apply and showcase your vision. 

Visit www.orlandomagicventure.com to submit your application and learn more about the Orlando Magic Venture Challenge. The submission period is open until March 5, 2025, with the final pitch event scheduled for March 26, 2025, at the Kia Center in Orlando, FL.