Comics Is Exploding, and GlobalComix Is Building the Platform for It

Why We Invested in GlobalComix

<p>The greatest competitive advantage in sports and health isn&#8217;t capital. As generalist capital floods the space in the short term, fueled by a wave of high-profile transactions and increased investor attention, we strongly believe that specialists will outperform in the long term. What matters most is expertise. Nuance, network, and know-how.</p><p>At LEAD, this is an especially exciting time, as the earliest specialist investors are seeing the upside of these market developments. As more investors begin entering our space, competition for the strongest opportunities intensifies, making early access more important than ever.</p><p>We follow a legacy that traces back to 1949. Adi Dassler, a relentless innovator, redefined what it meant to build in sports and created one of the most iconic cultural brands in the world, adidas. That same DNA fuels us today to back the Adi Dasslers of tomorrow. What began in 2017 as a sports accelerator from the adidas family has evolved into $150M+ assets under management with 50+ portfolio companies across a multi-fund, multi-stage mandate&#8212;writing $100K to $10M checks across sports, health, and more.</p><div class="captioned-image-container"><figure><a class="image-link image2" target="_blank" href="https://substackcdn.com/image/fetch/$s_!67AT!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb7e07744-602f-4268-9637-0ad24eda424b_1584x396.png" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!67AT!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb7e07744-602f-4268-9637-0ad24eda424b_1584x396.png 424w, https://substackcdn.com/image/fetch/$s_!67AT!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb7e07744-602f-4268-9637-0ad24eda424b_1584x396.png 848w, https://substackcdn.com/image/fetch/$s_!67AT!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb7e07744-602f-4268-9637-0ad24eda424b_1584x396.png 1272w, https://substackcdn.com/image/fetch/$s_!67AT!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb7e07744-602f-4268-9637-0ad24eda424b_1584x396.png 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!67AT!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb7e07744-602f-4268-9637-0ad24eda424b_1584x396.png" width="1456" height="364" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/b7e07744-602f-4268-9637-0ad24eda424b_1584x396.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:364,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:76916,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:&quot;https://leadvc.substack.com/i/192737163?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb7e07744-602f-4268-9637-0ad24eda424b_1584x396.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="" srcset="https://substackcdn.com/image/fetch/$s_!67AT!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb7e07744-602f-4268-9637-0ad24eda424b_1584x396.png 424w, https://substackcdn.com/image/fetch/$s_!67AT!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb7e07744-602f-4268-9637-0ad24eda424b_1584x396.png 848w, https://substackcdn.com/image/fetch/$s_!67AT!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb7e07744-602f-4268-9637-0ad24eda424b_1584x396.png 1272w, https://substackcdn.com/image/fetch/$s_!67AT!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb7e07744-602f-4268-9637-0ad24eda424b_1584x396.png 1456w" sizes="100vw" fetchpriority="high"></picture><div></div></div></a></figure></div><p>It is exactly this combination of legacy, experience, and domain expertise that sets LEAD apart. And defines how we aspire to build in our space.</p><p>As a firm, we have two heartbeats: sports and health. Sport is the great unifier, serving as one of the only things that brings the world together. And health is a shared concern, one of the only things that all 8 billion people on earth care deeply about.<br><br>This means we invest in life-changing and industry-evolving companies like the following:</p><ul><li><p>After participating in their seed round in 2024, we invested in primary care consumer app <a href="https://techcrunch.com/2026/02/03/lotus-health-nabs-35m-for-ai-doctor-that-sees-patients-for-free/">Lotus Health</a>&#8217;s $35M Series A round led by Kleiner Perkins and CRV to further their mission of providing 24/7 access to AI-powered primary care for more than 100 million Americans.</p></li><li><p>ADvantage led fitness app <a href="https://techcrunch.com/2025/10/27/workout-app-ladder-launches-nutrition-tracking-experience/">Ladder&#8217;s $15M Series B</a> alongside Point72 Ventures and a $90M go-to-market investment from General Catalyst, accelerating Ladder&#8217;s mission to deliver personalized training to millions.</p></li><li><p>As part of our thesis on women&#8217;s sports, we invested in <a href="https://www.togethxr.com/">Togethxr</a>, a women&#8217;s sports media and commerce company founded by four of the world&#8217;s greatest athletes: Alex Morgan, Sue Bird, Simone Manuel, and Chloe Kim.</p></li><li><p>Participated in <a href="https://www.youth.inc/">Youth Inc</a> alongside Will Ventures and Ryan Sports Ventures, a sports media and commerce platform designed to revolutionize how premium, customized merchandise is delivered to schools, fans, and parents.</p></li><li><p>Due to accelerating revenue growth and strong user metrics, digital comics platform <a href="https://www.globalcomix.com/">GlobalComix</a> recently closed a $13M financing round led by Point 72 Ventures, with LEAD, Wise Ventures, and Scrum Ventures participating.</p></li><li><p>Invested in <a href="https://www.orionsleep.com/">Orion</a>, a sleep technology company that uses AI to regulate body temperature for optimal sleep, in a $17.5M seed round alongside Mucker Capital and Second Sight Ventures, to democratize access to sleep solutions.</p></li><li><p>Participated in <a href="https://somneesleep.com/">Somnee&#8217;s</a> Seed round led by Khosla Ventures, alongside the DeVos Family as part of the Orlando Magic Venture Challenge, to provide a safe, effective solution for people struggling with insomnia.</p></li></ul><div id="youtube2-u-MIVyHM8tw" class="youtube-wrap" data-attrs="{&quot;videoId&quot;:&quot;u-MIVyHM8tw&quot;,&quot;startTime&quot;:null,&quot;endTime&quot;:null}" data-component-name="Youtube2ToDOM"><div class="youtube-inner"><iframe src="https://www.youtube-nocookie.com/embed/u-MIVyHM8tw?rel=0&amp;autoplay=0&amp;showinfo=0&amp;enablejsapi=0" frameborder="0" loading="lazy" gesture="media" allow="autoplay; fullscreen" allowautoplay="true" allowfullscreen="true" width="728" height="409"></iframe></div></div><p>Beyond investing, we also leverage our unique vantage point to deliver investment, advisory, and equity services to athletes, corporates, and health systems. Beyond investing ourselves, we partner with corporations to do the same work. Drawing on our decade of infrastructure, access, learnings, and network, our partners skip the resource-intensive process of building this themselves. Start in year ten, not day one. It is the ultimate shortcut.</p><p>While the firm has evolved greatly since its inception in 2017 to the specialist investor it is today, LEAD has always had the same &#8216;North Star&#8217; in mind. What was true then and what&#8217;s true today is that our investment funds and investment products are built with one goal in mind &#8212; to help the entrepreneur win.</p><div id="youtube2-nE__gW2K3bM" class="youtube-wrap" data-attrs="{&quot;videoId&quot;:&quot;nE__gW2K3bM&quot;,&quot;startTime&quot;:null,&quot;endTime&quot;:null}" data-component-name="Youtube2ToDOM"><div class="youtube-inner"><iframe src="https://www.youtube-nocookie.com/embed/nE__gW2K3bM?rel=0&amp;autoplay=0&amp;showinfo=0&amp;enablejsapi=0" frameborder="0" loading="lazy" gesture="media" allow="autoplay; fullscreen" allowautoplay="true" allowfullscreen="true" width="728" height="409"></iframe></div></div><div id="youtube2-ZSiN52X1qYA" class="youtube-wrap" data-attrs="{&quot;videoId&quot;:&quot;ZSiN52X1qYA&quot;,&quot;startTime&quot;:null,&quot;endTime&quot;:null}" data-component-name="Youtube2ToDOM"><div class="youtube-inner"><iframe src="https://www.youtube-nocookie.com/embed/ZSiN52X1qYA?rel=0&amp;autoplay=0&amp;showinfo=0&amp;enablejsapi=0" frameborder="0" loading="lazy" gesture="media" allow="autoplay; fullscreen" allowautoplay="true" allowfullscreen="true" width="728" height="409"></iframe></div></div><p class="button-wrapper" data-attrs="{&quot;url&quot;:&quot;https://leadvc.substack.com/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe now&quot;,&quot;action&quot;:null,&quot;class&quot;:null}" data-component-name="ButtonCreateButton"><a class="button primary" href="https://leadvc.substack.com/subscribe?"><span>Subscribe now</span></a></p>

Legacy From 1949. Founded in 2017. LEADing Ever Since.

Our Legacy as Specialist Investors

<div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!c8dD!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3bfc9efa-4d13-4997-93f7-8cc5c3072bd0_2875x1912.png" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!c8dD!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3bfc9efa-4d13-4997-93f7-8cc5c3072bd0_2875x1912.png 424w, https://substackcdn.com/image/fetch/$s_!c8dD!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3bfc9efa-4d13-4997-93f7-8cc5c3072bd0_2875x1912.png 848w, https://substackcdn.com/image/fetch/$s_!c8dD!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3bfc9efa-4d13-4997-93f7-8cc5c3072bd0_2875x1912.png 1272w, https://substackcdn.com/image/fetch/$s_!c8dD!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3bfc9efa-4d13-4997-93f7-8cc5c3072bd0_2875x1912.png 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!c8dD!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3bfc9efa-4d13-4997-93f7-8cc5c3072bd0_2875x1912.png" width="1456" height="968" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/3bfc9efa-4d13-4997-93f7-8cc5c3072bd0_2875x1912.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:968,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:7250075,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:&quot;https://leadvc.substack.com/i/169752009?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3bfc9efa-4d13-4997-93f7-8cc5c3072bd0_2875x1912.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="" srcset="https://substackcdn.com/image/fetch/$s_!c8dD!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3bfc9efa-4d13-4997-93f7-8cc5c3072bd0_2875x1912.png 424w, https://substackcdn.com/image/fetch/$s_!c8dD!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3bfc9efa-4d13-4997-93f7-8cc5c3072bd0_2875x1912.png 848w, https://substackcdn.com/image/fetch/$s_!c8dD!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3bfc9efa-4d13-4997-93f7-8cc5c3072bd0_2875x1912.png 1272w, https://substackcdn.com/image/fetch/$s_!c8dD!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3bfc9efa-4d13-4997-93f7-8cc5c3072bd0_2875x1912.png 1456w" sizes="100vw" fetchpriority="high"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><div class="pencraft pc-reset icon-container restack-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-refresh-cw"><path d="M3 12a9 9 0 0 1 9-9 9.75 9.75 0 0 1 6.74 2.74L21 8"></path><path d="M21 3v5h-5"></path><path d="M21 12a9 9 0 0 1-9 9 9.75 9.75 0 0 1-6.74-2.74L3 16"></path><path d="M8 16H3v5"></path></svg></div><div class="pencraft pc-reset icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></div></div></div></div></a></figure></div><p>Over the past 40 years, media innovation has largely focused on what we see. What we <em>hear</em>&#8212;and how we experience it&#8212;has barely evolved. Despite being an $82B market, audio has lagged far behind visual technology in innovation. For every dollar invested in visual tech, audio has received only a fraction, and patents in audio have grown at less than half the rate of those in imaging.</p><p><a href="https://www.edgesoundresearch.com/">EDGE Sound Research</a> is rewriting that script.</p><blockquote><p>&#8221;Our rationale for this investment centers on the market's recognition that the way humans &#8216;hear&#8217; (audio) has lacked innovation over the past forty years, especially when compared to advancements in the way humans &#8216;see&#8217; (media). Our enthusiasm for this investment stems from the solution's potential to address specific pain points across multiple industries, including sports, entertainment, automotive, and robotics.&#8221; - Justin Driscoll, Principal @ LEAD</p></blockquote><p><strong>Why Sound is the Next Frontier</strong></p><p>Audio limitations already constrain emerging tech&#8212;think VR headsets that deliver stunning visuals but rely on flat, two-dimensional soundscapes that break immersion. With over 20 million VR/AR headsets sold globally in 2024, the <a href="https://www.instagram.com/p/C8dWKCZA-Uw/">lack of spatially intelligent audio is a glaring gap</a> - overcoming it is key to fully realizing these experiences.</p><ul><li><p><strong>Immersive Tech Gap:</strong> VR/AR adoption is skyrocketing, yet spatial audio lags behind.</p></li><li><p><strong>Market Growth:</strong> The audio market is projected to triple to $275B by 2032.</p></li></ul><p>EDGE&#8217;s platform&#8212;spanning capture, processing, rendering, and reproduction&#8212;is creating a new category: <strong>intelligent audio.</strong></p><p>This isn&#8217;t just about louder or clearer sound. It&#8217;s about enabling computers to <em>understand</em> and <em>reproduce</em> sound in ways that feel human in immersive live sports, personalized broadcasts, and eventually, machines that hear and react like we do.</p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://leadvc.substack.com/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">Subscribe to receive the latest LEAD posts.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div><p><strong>The Founders Who Hear Differently</strong></p><p>EDGE was born from two deeply personal journeys:</p><ul><li><p><strong><a href="https://www.linkedin.com/in/valsalomaki/">Valtteri Salomaki</a> (CEO):</strong> A serial entrepreneur with a knack for B2B sales in sports and entertainment</p></li><li><p><strong><a href="https://www.linkedin.com/in/ethancastro/">Ethan Castro</a> (CTO):</strong> Born hard of hearing, Ethan became a professional musician by training himself to <em>feel</em> sound.</p></li></ul><p>Together, they bridge technical brilliance and commercial execution&#8212;turning what was once academic research into real-world deployments.</p><p><strong>Why We Backed EDGE</strong></p><p>Fan feedback from early <a href="https://www.instagram.com/p/DMBo5kto0jo/">NBA arena deployments</a> showed a double-digit increase in reported engagement and immersion compared to traditional seating, underscoring the demand for this technology. Revenue tied to these installations has also grown steadily, reinforcing the commercial opportunity.</p><p>Our conviction rests on three pillars:</p><ol><li><p><strong>Category Creation:</strong> A first-of-its-kind intelligent audio stack with applications across live events, broadcast, automotive, and robotics.</p></li><li><p><strong>Real-World Traction:</strong> Deployments with the Cleveland Cavaliers, Fox Sports, and MLS validate demand.</p></li><li><p><strong>Platform Potential:</strong> From immersive fan experiences to teaching robots to hear, EDGE is building infrastructure for the next decade of sound.</p></li></ol><p><strong>What&#8217;s Next</strong></p><p>By this time next year, EDGE expects to double its number of venue installations and broadcast integrations, aligning with the broader convergence of AI in broadcast and robotics adoption.</p><p>With a $2.5M seed extension anchored by strategic partners like Sweetwater, EDGE is scaling Embodied Sound installations, commercializing its Virtual Sound Engine for broadcast, and exploring robotics integrations.</p><p>The <a href="https://www.instagram.com/p/C1tDruvLnsv/">future of audio</a> won&#8217;t just be heard&#8212;it will be <em>felt,</em> <em>personalized,</em> and ultimately <em>understood.</em> We&#8217;re thrilled to back EDGE as they make intelligent sound infrastructure a reality.</p><p>Edge Sound Research has <a href="https://www.sportsbusinessjournal.com/Articles/2025/06/27/usta-ventures-invests-in-edge-sound-research/">raised $2.75M in new funding</a>, bringing the audio innovation startup&#8217;s total backing to $5.5M. The latest round was led by Elevate Ventures and included participation from USTA Ventures, the DeVos family, LEAD VC, Cartan Capital, and Potential Capital, among other angel investors in the audio and entertainment space.</p><p><em>Disclosure: EDGE Sound Research participated in the inaugural <a href="https://www.sportsbusinessjournal.com/Articles/2025/04/18/magic-select-five-companies-in-inaugural-magic-venture-challenge/">Orlando Magic Venture Challenge</a>.</em></p><div class="captioned-button-wrap" data-attrs="{&quot;url&quot;:&quot;https://leadvc.substack.com/p/why-we-invested-in-edge-sound-research?utm_source=substack&utm_medium=email&utm_content=share&action=share&quot;,&quot;text&quot;:&quot;Share&quot;}" data-component-name="CaptionedButtonToDOM"><div class="preamble"><p class="cta-caption">Thanks for reading! Feel feel free to share it with someone who it resonates with.</p></div><p class="button-wrapper" data-attrs="{&quot;url&quot;:&quot;https://leadvc.substack.com/p/why-we-invested-in-edge-sound-research?utm_source=substack&utm_medium=email&utm_content=share&action=share&quot;,&quot;text&quot;:&quot;Share&quot;}" data-component-name="ButtonCreateButton"><a class="button primary" href="https://leadvc.substack.com/p/why-we-invested-in-edge-sound-research?utm_source=substack&utm_medium=email&utm_content=share&action=share"><span>Share</span></a></p></div>

Reinventing audio for an immersive, AI-driven future.

Why We Invested in Edge Sound Research

<div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!WIG0!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3d436f7b-63a4-43f4-9937-d0ad1cb4d8cc_2875x1913.png" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!WIG0!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3d436f7b-63a4-43f4-9937-d0ad1cb4d8cc_2875x1913.png 424w, https://substackcdn.com/image/fetch/$s_!WIG0!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3d436f7b-63a4-43f4-9937-d0ad1cb4d8cc_2875x1913.png 848w, https://substackcdn.com/image/fetch/$s_!WIG0!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3d436f7b-63a4-43f4-9937-d0ad1cb4d8cc_2875x1913.png 1272w, https://substackcdn.com/image/fetch/$s_!WIG0!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3d436f7b-63a4-43f4-9937-d0ad1cb4d8cc_2875x1913.png 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!WIG0!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3d436f7b-63a4-43f4-9937-d0ad1cb4d8cc_2875x1913.png" width="1456" height="969" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/3d436f7b-63a4-43f4-9937-d0ad1cb4d8cc_2875x1913.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:969,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:4793682,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:&quot;https://leadvc.substack.com/i/169671774?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3d436f7b-63a4-43f4-9937-d0ad1cb4d8cc_2875x1913.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="" srcset="https://substackcdn.com/image/fetch/$s_!WIG0!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3d436f7b-63a4-43f4-9937-d0ad1cb4d8cc_2875x1913.png 424w, https://substackcdn.com/image/fetch/$s_!WIG0!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3d436f7b-63a4-43f4-9937-d0ad1cb4d8cc_2875x1913.png 848w, https://substackcdn.com/image/fetch/$s_!WIG0!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3d436f7b-63a4-43f4-9937-d0ad1cb4d8cc_2875x1913.png 1272w, https://substackcdn.com/image/fetch/$s_!WIG0!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3d436f7b-63a4-43f4-9937-d0ad1cb4d8cc_2875x1913.png 1456w" sizes="100vw" fetchpriority="high"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><div class="pencraft pc-reset icon-container restack-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-refresh-cw"><path d="M3 12a9 9 0 0 1 9-9 9.75 9.75 0 0 1 6.74 2.74L21 8"></path><path d="M21 3v5h-5"></path><path d="M21 12a9 9 0 0 1-9 9 9.75 9.75 0 0 1-6.74-2.74L3 16"></path><path d="M8 16H3v5"></path></svg></div><div class="pencraft pc-reset icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></div></div></div></div></a></figure></div><h2>I. Introduction</h2><p>College athletics, long celebrated as the last and purest form of amateur sport, is undergoing a dramatic transformation&#8212;a fast-track toward professionalization.</p><p>What was once a university-operated, donor-supported, community-backed ecosystem governed by tradition is now increasingly influenced by macroeconomic market forces, including labor rights, media rights, and potentially private capital.</p><p>This is no longer just about who wins the Rose Bowl or the Final Four. It&#8217;s about who controls the infrastructure, monetization, and influence of a multi-billion-dollar industry.</p><p>I see this not just as a cultural shift&#8212;but as an infrastructure vacuum. When the old models collapse, someone will build the new ones. The only question is: who?</p><h2>II. NIL as the Trojan Horse</h2><p>The emergence of Name, Image, and Likeness (NIL) in 2021 was a highly debated topic. Traditionalists branded it as a violation of what it means to be a student-athlete, while progressives called it a long-overdue move to give athletes the right to monetize their efforts. Whether people agreed or disagreed, the legalization of this athlete-empowered movement sparked a snowball effect that could not be stopped, even if an attempt was made.</p><blockquote><p><a href="https://miamihurricanes.com/news/2023/11/17/canes-connection-named-official-nil-collective-of-university-of-miami-athletics/">Case Study</a>: At the University of Miami, a booster-backed collective signed a $400K NIL deal with a top men&#8217;s basketball recruit. That public deal set a new standard&#8212;effectively pricing out less-resourced programs. The result? A Final Four run in 2023 and a clear statement: NIL was no longer about individual endorsements. It had become an institutional weapon.</p></blockquote><p>NIL was never just about athletes making money off Instagram. From the start, collectives were used as the primary recruiting tool for coaches to attract top talent to their schools. An anonymous SEC Athletic Director said, &#8220;Boosters used to give to build facilities. Now they&#8217;re paying for talent directly. That changes the whole power structure.&#8221; It&#8217;s now a full-fledged compensation system disguised as marketing. Honestly, that took some time to develop. In 2021, NIL mainly involved ad-hoc sponsorships and brand deals. And now, in 2025, it has grown into structured contracts, retention incentives, and tiered recruiting payouts. Many would describe this short-lived period as the Wild West.</p><p>However, as many had predicted, this structure alone could not hold up. It quickly turned into an arms race to the bottom, with the winner being the one with the most donor dollars.</p><p>The aftermath that we predict is a lose-lose where every party involved is fatigued at the end.</p><p>Market forces are now knocking on the front doorstep of college athletics to clean house.</p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://leadvc.substack.com/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">Subscribe to receive all of LEAD&#8217;s latest posts.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div><p></p><h2>III. The Broken Model &amp; Its Unintended Consequences</h2><p>The traditional economic model of college athletics was based on three pillars (but not for much longer):</p><ol><li><p><em>Volunteer amateur labor:</em> When the <a href="https://www.si.com/college/2016/02/24/northwestern-union-case-book-indentured">Northwestern football team tried to unionize in 2014</a>, it marked the beginning of a labor rights awakening. With recent settlements, the NCAA has finally lost its grip on defining athletes as &#8220;students first.&#8221; Using this argument, universities profited off athletes&#8217; names and likenesses without paying them. The era of unpaid labor is essentially over.</p></li><li><p><em>Ever-increasing broadcast revenue:</em> While media revenue has surged, so have expectations. Linear TV is funding the present, but it&#8217;s not shaping the future. Media revenue was once the main driver of growth. Now it&#8217;s the wedge that&#8217;s divided the sport. Mega-deals with Fox and ESPN have created &#8220;haves&#8221; and &#8220;have-nots,&#8221; with Power5 schools earning three to five times more than mid-majors. That imbalance is now apparent.</p></li><li><p><em>Alumni-driven efforts:</em> Donors are funding talent pipelines in the dark, often with no say or stake. This shift from philanthropy to transaction is forcing many to rethink their role in the ecosystem. When their emotional ties unravel, dollars will slowly disappear. A Stanford donor said in a Sportico article, &#8220;If we become just another minor league, don&#8217;t expect me to keep giving like this as an alma mater.&#8221;</p></li></ol><p>That model is now broken. Why now? This is a $20B market awakening to its own inefficiencies. College athletics is no longer just a stepping stone&#8212;it has become its own market. With ongoing legal reforms, revenue increasing from media rights, and private equity interest intensifying, it is an inevitable truth waiting to be revealed.&nbsp;</p><p><em>Legal Reforms:</em> <a href="https://www.espn.com/college-sports/story/_/id/45467505/judge-grants-final-approval-house-v-ncaa-settlement">The House v. NCAA settlement</a> marks a turning point. Approximately $20.5 million per school in new revenue allocation has temporarily leveled the NIL landscape &#8212;no more pay-to-play arms race, but most schools still lack the tools to spend wisely. The new structure means that every athletic department now operates under a quasi-professional model. Schools must now budget like businesses, with actual labor costs. Without a unified labor framework, the result is chaos: different state laws, inconsistent enforcement, and vast compliance gaps. More to come here.</p><p><em>Revenue Surges:</em> In 2025, the Big Ten and SEC are projected to generate over $1.5 billion in media rights, surpassing the revenue of some professional leagues. However, this &#8220;super conference&#8221; model results in concentrated value&#8212;40 schools thrive while 300 others struggle. This consolidation reflects Silicon Valley: dominant platforms overshadow everyone else.</p><p><em>PE Interest:</em> Firms are targeting college sports to control the infrastructure. Similar to fintech or logistics, owning the infrastructure offers long-term leverage. Revenues have increased, but cost structures remain inflated. Some groups are quietly exploring ways to bundle athletic department revenue streams for securitization. It&#8217;s financial engineering combined with fandom.</p><p>All these rapidly changing dynamics raise a significant concern: the unintended result of facing inequities in college athletics for non-revenue sports. This is a question I haven&#8217;t seen many people in the industry address or have a clear strategy for. I am hopeful that this will change.&nbsp;</p><h2>IV. Global Models: A Mirror or a Warning?</h2><p>Across Europe and around the world, professional sports primarily grow through club academies and federated systems, rather than universities. Some UEFA development coach probably says, &#8220;In Europe, we don&#8217;t pretend our 18-year-old striker is here to major in biology.&#8221; Separating academics and athletics has its downsides, but also provides clarity. US college sports might be closer to that reality than we first think. As schools move away from the student-athlete label and start offering direct pay, they&#8217;ll need new models for scale, governance, and ownership.</p><h2>V. What I&#8217;m Looking for as a VC?</h2><blockquote><p>&#8220;Schools need infrastructure fast. If the NCAA won&#8217;t build it, startups will.&#8221; &#8212; Blake Lawrence, CEO, OpenDorse</p></blockquote><p><em>&#129504; Thematic Signals I&#8217;m Tracking:</em></p><p>I want to find builders developing new systems for an old industry. This cosmic shift in the industry is that increasing revenue is the top priority. Revenue can be perceived directly on a P&amp;L, but also indirectly through a team&#8217;s winning percentage. But do not ignore or lose sight of what matters most to athletic departments moving forward.</p><ol><li><p>&#8220;Boring&#8221; back-office tools for athletic departments to operate like a traditional business.</p></li><li><p>&#8220;High ROI&#8221; front-office &amp; on-field tools designed to impact winning games sustainably.</p></li><li><p>Infrastructure for fan monetization beyond tickets. Fan identification is required first.</p></li></ol><h2>VII. Final Words</h2><p>This isn&#8217;t the &#8220;hype wave&#8221; we all experienced with NIL. It&#8217;s a structural re-architecture.</p><ul><li><p><em>For founders:</em> the need is real, and the buyers are scared. Get busy!</p></li><li><p><em>For athletic departments:</em> the clock is ticking. Go out and innovate. If you want to retain control, start running a sports enterprise, not a scholarship office with a stadium.</p></li><li><p><em>For VCs:</em> The market size is substantial, and market dynamics are currently in place.</p></li><li><p><em>For PEs:</em> While it has some perks to the vanity asset (like professional sports), you&#8217;ve got quite the operational task ahead of you. That said, there is serious upside if executed the right way.</p></li></ul><div class="captioned-button-wrap" data-attrs="{&quot;url&quot;:&quot;https://leadvc.substack.com/p/the-great-unbundling-of-college-athletics?utm_source=substack&utm_medium=email&utm_content=share&action=share&quot;,&quot;text&quot;:&quot;Share&quot;}" data-component-name="CaptionedButtonToDOM"><div class="preamble"><p class="cta-caption">Thanks for reading! Feel free to share this post with someone it resonates with.</p></div><p class="button-wrapper" data-attrs="{&quot;url&quot;:&quot;https://leadvc.substack.com/p/the-great-unbundling-of-college-athletics?utm_source=substack&utm_medium=email&utm_content=share&action=share&quot;,&quot;text&quot;:&quot;Share&quot;}" data-component-name="ButtonCreateButton"><a class="button primary" href="https://leadvc.substack.com/p/the-great-unbundling-of-college-athletics?utm_source=substack&utm_medium=email&utm_content=share&action=share"><span>Share</span></a></p></div><p></p>

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