Value-Added Bandwidth

DeWi networks like Helium and DAWN orchestrate commodity bandwidth. They earn fractions of a dollar per GB for providing the base-layer connectivity that powers our homes, offices and smartphones.

Today, we’re sharing a thesis on value-added bandwidth networks, or VABs: networks higher in the value chain that crowdsource commodity bandwidth, build proprietary value-added products that monetize at multiple dollars per GB, and use revenues from those high-margin products to reward miners for contributing bandwidth.

There are already 20+ venture-backed projects operating as VABs. At scale, we think the winners will generate 30-50% bottom-line margins in multi-billion dollar markets.

We think there are (at least) three venture-scale VABs in the making:

• Distribution networks (CDNs) like Aro use edge nodes to deliver high-speed Internet capacity to emerging markets, where latencies are 2-3x slower today.

• Scraping networks like Grass use edge nodes to scrape the web at scale and resell access to web content to AI model developers for training and inference.

• Indexing networks like Rumi use edge nodes to index web content at scale and resell access to AI agents to power agentic user experiences in real-time.

Advertising is one of the most interesting end-markets for VABs. Legacy incumbents like Nielsen make >$3B/yr measuring what consumers are watching on TV using largely the same technology that it used half a a century ago. With the proliferation of AI-capable edge computing chips in our smartphones and laptops, a better solution could be an order of magnitude faster, cheaper, and better at protecting users’ privacy.

This is exactly what Rumi is building, and last week we had the pleasure of announcing that earlier this year we co-led Rumi’s $4.7m pre-seed round alongside a16z CSX.

To read more about our thesis on Value-Added Bandwidth (VAB) networks, check out the full 45-page presentation on docsend or our interview with the founders of Rumi. Join the waitlist at Rumi and at Aro to passively earn rewards while you use the internet.