Dave Lee's interest in dance music began with collecting disco, soul and funk records in the late 1970s. In 1986, he got his first job in the industry, working at the short-lived store Smithers & Leigh. He moved over to Rough Trade, who were then setting up a dance division, Demix, and were looking for someone to run it. Within a short period of time, Demix was handling hits for Bomb the Bass, MARRS and Beatmasters. Less than a year later, Lee, in partnership with Rough Trade, set up his own label, Republic Records, which became known both for the series of compilation albums, "The Garage Sound of Deepest New York", as well Lee's own early forays into studio production.