<div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!uFqc!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F394631f9-862a-4e5f-b5de-36439971b9f0_1920x1080.png" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!uFqc!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F394631f9-862a-4e5f-b5de-36439971b9f0_1920x1080.png 424w, https://substackcdn.com/image/fetch/$s_!uFqc!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F394631f9-862a-4e5f-b5de-36439971b9f0_1920x1080.png 848w, https://substackcdn.com/image/fetch/$s_!uFqc!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F394631f9-862a-4e5f-b5de-36439971b9f0_1920x1080.png 1272w, https://substackcdn.com/image/fetch/$s_!uFqc!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F394631f9-862a-4e5f-b5de-36439971b9f0_1920x1080.png 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!uFqc!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F394631f9-862a-4e5f-b5de-36439971b9f0_1920x1080.png" width="1456" height="819" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/394631f9-862a-4e5f-b5de-36439971b9f0_1920x1080.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:819,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:128407,&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/186464050?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F394631f9-862a-4e5f-b5de-36439971b9f0_1920x1080.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="" srcset="https://substackcdn.com/image/fetch/$s_!uFqc!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F394631f9-862a-4e5f-b5de-36439971b9f0_1920x1080.png 424w, https://substackcdn.com/image/fetch/$s_!uFqc!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F394631f9-862a-4e5f-b5de-36439971b9f0_1920x1080.png 848w, https://substackcdn.com/image/fetch/$s_!uFqc!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F394631f9-862a-4e5f-b5de-36439971b9f0_1920x1080.png 1272w, https://substackcdn.com/image/fetch/$s_!uFqc!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F394631f9-862a-4e5f-b5de-36439971b9f0_1920x1080.png 1456w" sizes="100vw" fetchpriority="high"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" style="height:20px;width:20px" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft 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></button></div></div></div></a></figure></div><p>LEAD is proud to share that we&#8217;ve doubled down on our investment in <a href="https://lotus.ai/">Lotus Health AI</a>, doubling down in the company&#8217;s <a href="https://techcrunch.com/2026/02/03/lotus-health-nabs-35m-for-ai-doctor-that-sees-patients-for-free/">$35M Series A fundraise</a> alongside Kleiner Perkins and CRV, following our initial investment in its Seed round in 2024. We couldn&#8217;t be more excited to see all the progress that Lotus has made in building the AI doctor powered by real doctors.</p><p>In 2024, when we first met Lotus&#8217;s founder, <a href="https://www.linkedin.com/in/kjdhaliwal/">KJ Dhaliwal</a>, he posed a compelling question: What if siloed health records, wearable data, insurance information, millions of peer-reviewed studies, and clinical guidelines were unified in one app?</p><p>As the business continued to mature over the next two years, that insight evolved into a bolder vision: making world-class primary care accessible to every American, 24/7. After years of development, Lotus is making this vision real. Partnering with clinicians from Harvard, UCSF, Stanford, Johns Hopkins, and other leading institutions, Lotus delivers personalized primary care powered by real doctors, unifying fragmented health data with insurance information and evidence-based medicine, available to patients <em>for free</em>.</p><blockquote><p>&#8220;Industry-changing companies are rarely built by insiders&#8212;they know too much to question the system. KJ brings an outsider imagination with his technical experience of scaling and exiting one of South Asia&#8217;s most successful consumer apps. He&#8217;s assembled an exceptional team to ensure this product reaches the people who need it most.&#8221; - <em>Justin Driscoll, Principal at LEAD</em></p></blockquote><h4><strong>Healthcare is Broken. Primary Care Is Worse.</strong></h4><p>When people discuss the state of U.S. healthcare, many point out that we spend <a href="https://www.healthsystemtracker.org/chart-collection/u-s-life-expectancy-compare-countries/#Life%20expectancy%20and%20per%20capita%20healthcare%20spending%20(PPP%20adjusted),%202023">twice as much</a> per capita as other large, wealthy countries yet still deliver<a href="https://www.healthsystemtracker.org/chart-collection/u-s-life-expectancy-compare-countries/#Life%20expectancy%20and%20per%20capita%20healthcare%20spending%20(PPP%20adjusted),%202023"> worse</a> health outcomes. However, as problematic as our overall health system is, the primary care system is even worse.</p><p><em><strong>Acute Physician Shortage:</strong></em><strong> </strong>In 2022, <a href="https://physiciansfoundation.org/new-report-u-s-primary-care-system-crumbling-amid-historic-disinvestment-and-surge-in-chronic-diseases/">30%</a><strong> </strong>of U.S. adults lacked a consistent source of care, the highest level in a decade, even with historically high rates of insurance coverage. Despite primary care&#8217;s vital role in providing <a href="https://www.graham-center.org/content/dam/rgc/documents/publications-reports/reports/PrimaryCareChartbook2021.pdf">first contact, coordination, continuity, and comprehensiveness of care</a>, primary care physicians account for only about <a href="https://www.graham-center.org/content/dam/rgc/documents/publications-reports/reports/PrimaryCareChartbook2021.pdf">one-third</a><strong> </strong>of the physician workforce, well below the Council of Graduate Medical Education&#8217;s recommended 40%. Factors such as retirements and fewer medical graduates choosing family medicine for more lucrative fields are only widening the gap.</p><p><em><strong>Fragmentation and Care Gaps:</strong></em><strong> </strong>At the same time, driven by similar forces, the U.S. healthcare system has become increasingly fragmented and specialized in its care delivery, even as the patient population has shifted toward chronic disease management that requires coordinated, continuous care. Today, <a href="https://www.cdc.gov/pcd/issues/2025/24_0539.htm">76.4%</a> of U.S. adults live with at least one chronic condition, and <a href="https://www.cdc.gov/pcd/issues/2025/24_0539.htm">51.4%</a> suffer from multiple conditions. These patients bear the brunt of care fragmentation, as managing chronic diseases requires sustained care coordination over long periods.</p><h4><strong>How We Broke Primary Care (And Why It Matters)</strong></h4><p>The problem of U.S. primary care is multifaceted.</p><p><em><strong>Misaligned Payment Incentives: </strong></em>The still-dominant fee-for-service model disincentivizes primary care under the American Medical Association&#8217;s Relative Value Scale, and the Relative Value Units assigned to primary care services are <a href="https://health.ucdavis.edu/media-resources/family-medicine/documents/pdf/Rev-PC-Recommendations-and-Proceedings-2025.pdf">much lower</a> than those for subspecialties, contributing to lower salaries for family physicians, general internists, and pediatricians.</p><p><em><strong>Declining Payor Investments: </strong></em>Additionally, insurers&#8217; investments in primary care as a share of total healthcare spending fell from <a href="https://www.milbank.org/publications/the-health-of-us-primary-care-2024-scorecard-report-no-one-can-see-you-now/">5.4%</a> in 2012 to <a href="https://www.milbank.org/publications/the-health-of-us-primary-care-2024-scorecard-report-no-one-can-see-you-now/">4.7%</a> in 2021, despite primary care accounting for<a href="https://www.nationalacademies.org/read/25983/chapter/3"> 35%</a> of healthcare visits.</p><p><em><strong>The Net Impact Of It All: </strong></em>These forces have resulted in a sharp rise in the number of Americans who lack a consistent source of healthcare, with medically underserved individuals most affected. Even for those with access to primary care, many physicians are <em>overburdened </em>and<em> under-resourced</em>, resulting in limited patient access, short visits, and many patients <a href="https://health.ucdavis.edu/media-resources/family-medicine/documents/pdf/Rev-PC-Recommendations-and-Proceedings-2025.pdf">dissatisfied</a> with timeliness and quality of care.</p><h4><strong>A Category Ripe for Disruption</strong></h4><p>As a health specialist investor, LEAD has had our eyes on the health data space ever since the publication of The Trusted Exchange Framework and Common Agreement (TEFCA) in early 2022, which created the framework for a nationwide &#8220;network-of-networks&#8221; to enable secure, standardized health data sharing for healthcare stakeholders. However, finding the right opportunity took some time.</p><blockquote><p><em>&#8220;Before investing in Lotus, we met with hundreds of startups in the space and struggled to find a consumer platform that offered both unified health insights and intervention capabilities within the healthcare system.&#8221;</em></p><p><em>Kaiwen Liu, Associate at LEAD</em></p></blockquote><p>Since our Seed investment in May 2024, we&#8217;ve grown increasingly excited as the team transforms vision into product - though until now, we&#8217;ve kept that excitement to ourselves while the company built in stealth.</p><p>The landscape has shifted dramatically even in the months since our initial investment in 2024. Major technology companies entering healthcare signal that the market recognizes what we saw early: AI-powered care delivery is not theoretical but inevitable. This influx of attention and capital is expanding the category and accelerating user adoption. More than 5% of all ChatGPT messages globally are about health care, and more than <a href="https://www.axios.com/2026/01/05/chatgpt-openai-health-insurance-aca">40 million</a> people globally turn to ChatGPT daily for health information.</p><p>For purpose-built healthcare companies with clinical rigor and consumer trust, this rising tide creates opportunity rather than competition.</p><h4><strong>Closing Thoughts</strong></h4><p>We invested in Lotus and the team because millions of Americans urgently need better primary care solutions. We believe Lotus has the potential to help fill the gap and deliver high-quality, continuous, whole-person care for people suffering from chronic conditions, while supporting under-resourced primary care physicians.</p><p>This can truly transform health outcomes for millions, if not billions of people. We couldn&#8217;t be more excited to support Lotus in its next chapter.</p><div id="youtube2-v12NCH9DAuQ" class="youtube-wrap" data-attrs="{&quot;videoId&quot;:&quot;v12NCH9DAuQ&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/v12NCH9DAuQ?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>

Giving Every American World-Class Primary Care, for Free.

Why We Invested in 2024 (and Doubling Down) in Lotus Health AI

<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

<h3>What Is Throne?</h3><p>A passive, continuous health monitor embedded in your toilet seat turns a daily routine into valuable insights for gut health, hydration, and cancer detection. Throne is available today for stool and urine analysis and is designed as the &#8220;Whoop for Your Poop&#8221; for the 75 million Americans dealing with IBS, IBD, and prostate issues. The future version of Throne, known as the &#8220;Smoke Detector for Colon Cancer,&#8221; will expand its capabilities to include screening for one of the fastest-growing cancers in the United States.</p><div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!3IZ6!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe6317f8f-6ae9-4516-ba0b-660001df7160_1200x630.jpeg" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!3IZ6!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe6317f8f-6ae9-4516-ba0b-660001df7160_1200x630.jpeg 424w, https://substackcdn.com/image/fetch/$s_!3IZ6!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe6317f8f-6ae9-4516-ba0b-660001df7160_1200x630.jpeg 848w, https://substackcdn.com/image/fetch/$s_!3IZ6!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe6317f8f-6ae9-4516-ba0b-660001df7160_1200x630.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!3IZ6!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe6317f8f-6ae9-4516-ba0b-660001df7160_1200x630.jpeg 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!3IZ6!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe6317f8f-6ae9-4516-ba0b-660001df7160_1200x630.jpeg" width="1200" height="630" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/e6317f8f-6ae9-4516-ba0b-660001df7160_1200x630.jpeg&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:630,&quot;width&quot;:1200,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:39385,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/jpeg&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:&quot;https://leadvc.substack.com/i/208868655?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe6317f8f-6ae9-4516-ba0b-660001df7160_1200x630.jpeg&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="" srcset="https://substackcdn.com/image/fetch/$s_!3IZ6!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe6317f8f-6ae9-4516-ba0b-660001df7160_1200x630.jpeg 424w, https://substackcdn.com/image/fetch/$s_!3IZ6!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe6317f8f-6ae9-4516-ba0b-660001df7160_1200x630.jpeg 848w, https://substackcdn.com/image/fetch/$s_!3IZ6!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe6317f8f-6ae9-4516-ba0b-660001df7160_1200x630.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!3IZ6!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe6317f8f-6ae9-4516-ba0b-660001df7160_1200x630.jpeg 1456w" sizes="100vw" fetchpriority="high"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg aria-hidden="true" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft 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></button></div></div></div></a></figure></div><div><hr></div><p><span>Deciding to invest in a company usually hinges on two questions: 1) Will the founders find a way to succeed? 2) Is the target market large enough?</span></p><h3><span>Founder Bet</span></h3><p><a href="https://www.linkedin.com/in/scotthickle/"><span>Scott Hickle</span></a><span> is a founder who combines three qualities rarely found together: being a talent magnet, an obsession with solving the problem, and deep industry k</span><span data-color="#032b31" style="color: rgb(3, 43, 49);">nowledge. His motivation is straightforward &#8212; he&#8217;s passionate about saving lives and wants the Throne device on every accessible toilet. If you don&#8217;t believe us&#8230; His social handle is &#8220;</span><a href="https://x.com/ScottHickle"><span data-color="#032b31" style="color: rgb(3, 43, 49);">Poop Guy</span></a><span data-color="#032b31" style="color: rgb(3, 43, 49);">,&#8221; and he gave a </span><a href="https://www.youtube.com/watch?v=v42gznW6cuA"><span data-color="#032b31" style="color: rgb(3, 43, 49);">TED Talk </span></a><span data-color="#032b31" style="color: rgb(3, 43, 49);">on the history and significance of poop.</span></p><p><span data-color="#032b31" style="color: rgb(3, 43, 49);">Chasing an introduction to Throne kicked off an organic 18-month relationship before a check was written. We introduced him to multiple investo</span><span>rs who then joined this round, connected him with enterprise customers who remain engaged, and brought him before clinicians who initially questioned but ultimately left as believers in his right to win. Scott exemplifies a founder willing to bend reality with passionate intensity to make his business succeed.</span></p><p><span>His effectiveness is evident in the people he&#8217;s assembled. Scott recruited John Capodilupo, co-founder of Whoop and a key technical figure behind the $10B consumer health startup, who personally relates to the problem&#8212;living with ulcerative colitis. Scott also persuaded Ben Grynol, who previously led consumer growth at Levels, to join Throne. Scott established a medical advisory board with Dr. David Rubin and Dr. Mark Pimentel, renowned researchers with over 10,000 combined citations in IBS/IBD. Scott attracted an investor syndicate such as Emerson Collective, Will Ventures, Moxxie Ventures, Felix Capital, and Accomplice (an early supporter of Whoop).</span></p><h3><span>Market Bet</span></h3><p><span>In consumer health technology, continuous tracking now covers sleep, heart rate, glucose, and hormones, providing daily insights into bodily functions that influence habits. Despite valuable clinical signals from bathroom data, this area has received little to no attention. Wearables like Whoop and Oura needed to convince users that tracking HRV and sleep was important, but Throne doesn&#8217;t face that hurdle. This is because its core users have less need for education and face immediate health concerns. Patients with IBD, IBS, and prostate issues already understand the importance of monitoring symptoms, yet lack easy methods beyond memory, spreadsheets, or guesswork. Throne&#8217;s passive approach makes sustained long-term behavior change feasible. Over time, it reveals how factors like sleep, alcohol, medication, stress, and diet shape personal patterns, transforming passive data into actionable insights. This potential creates billions in enterprise value but isn&#8217;t the ultimate swing.</span></p><p><span>As Throne develops colon cancer screening features, its audience grows significantly, unlocking a new dimension of value&#8212;an extension many other consumer health devices are racing to build. Colon cancer is among the fastest-growing cancers in the U.S., increasingly affecting those under 50 and steering market interest toward early detection. While Cologuard, as the market leader, generates over $2 billion annually with a binary test, Throne aims to address an earlier need: helping individuals proactively understand how to prevent cancer before testing becomes necessary. Colon cancer is often preventable and highly treatable if caught early. If Throne can passively detect clinical signals without requiring behavioral changes, it will give larger diagnostic companies a strategic reason to view it as a frontline tool in cancer prevention, ultimately saving lives.</span></p><p>We are excited to back the incredible people, mission, and vision at <a href="https://thronescience.com/">Throne</a>!</p>

Strong conviction in world-class founders building a multi-billion-dollar consumer play around gut health and cancer detection.

Why We Backed Throne? A Bathroom Biomarker

<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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