Tech disruptor Lee Stein pushes students to defy the odds

Lee Stein, a serial tech entrepreneur and veteran of Silicon Valley, recently gave Golisano Institute students an inside look at how competitive prizes for technological innovation can propel a safer, more sustainable world.

“Traditional venture capital is about finding a needle in a haystack,” Lee Stein says. “We found that when we put up a prize, the needle comes to us.”

Stein is on the board of trustees for XPRIZE Foundation, an organization that has awarded over $140M in prize purses through competitions to spur “radical breakthroughs for the benefit of humanity.” An early pioneer of web-based payment systems, Stein recently gave Golisano Institute students an inside look at XPRIZE’s success in bringing industry-changing technological innovation to market.

Innovating beyond impossible

“We’re looking for things at the intersection of ‘probably possible’ and audacious,” Stein said.

People chase that prize purse with innovation and capital.

– Lee Stein, Board of Trustees, XPRIZE Foundation

The XPRIZE model was inspired by the first flight across the Atlantic. Charles Lindbergh’s 1919 achievement won him $25K, a prize reward offered by Raymond Orteig, a hotel owner in New York City.

“People chase that prize purse with innovation and capital,” Stein explained.

XPRIZE has funded competitive prizes to spark innovation that can solve seemingly impossible challenges, like carbon removal, human aging, or quantum computing. The first prize, the Ansari XPRIZE, proved the feasibility of commercial space travel over 30 years ago.

Every prize dollar results in $23 of return, according to Stein. He pointed out that the biggest source of risk in conventional tech investment—whether the innovation will work or not—is out of the equation once a team wins. “They only pay the money when the contestant achieves the outcome,” he pointed out.

Finding the market failure

Stein was head of First Virtual Holdings, which introduced an early form of online payment with a platform for buying and selling copyrighted articles and other intellectual property over an electronic network. An environmentalist, philanthropist, entrepreneur, inventor, and attorney, Stein is currently the chairman of the board for Spiral Health. The startup leverages artificial intelligence (AI) to provide patients with personalized solutions for treating chronic back pain.

The day you accept the status quo is the day that you lose.

– Lee Stein

A group of students had the chance to learn more about Spiral Health during a lunchtime workshop led by Stein. The conversation spanned across many disruptive technologies—like blockchain and self-driving cars—that Stein believes represent a second invention-of-fire moment in human history.

“We want our students to learn firsthand how AI can, and already is, transforming traditional business models,” said Graham Anthony, assistant vice president for education technologies and innovation at Golisano Institute. “Lee’s involvement with XPRIZE and Spiral Health exposed students to both the macro and micro in AI business possibilities.”

“The day you accept the status quo is the day that you lose,” Stein told the group, referring to his decades of experience within the disruption-driven ecosystem of Silicon Valley. “We know there’s a market failure in healthcare right now.”

The workshop gave students a simulated experience of life as a Silicon Valley tech startup. Stein and his son Spencer (who joined virtually) pitched Spiral Health to the group, putting them in the driver’s seat as potential investors.

“The opportunity to engage face-to-face with world-class thinkers and doers like Lee is something we are very intentional about here,” said Ian Mortimer, Golisano Institute’s president. “Ever since we launched in 2023, the world of business has continually been impacted by AI and technology. Lee’s visit reinforces our belief in this relationship.”

Getting the chance to meet the Steins and hear about Spiral Health honestly […] reminded me exactly why I’m here.

– Brittani Diamond, Golisano Institute student

Brittani Diamond, a student in the institute’s inaugural class, attended the session. “When I first came to the Golisano Institute, my goal was to make a real difference in the health and wellness space. Over time,  I found myself falling in love with tech,” she said. “Getting the chance to meet the Steins and hear about Spiral Health honestly felt like everything coming full circle. It reminded me exactly why I’m here.”