Dec 21, 2015 · 27m · 20vc

20 VC: Running Lerer Hippeau Ventures Like A Startup with Eric Hippeau, Managing Partner @ Lerer Hippeau Ventures

Eric Hippeau · 19m spoken Harry Stebbings · 6m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this episode of The 20 Minute VC, host Harry Stebbings interviews Eric Hippeau, Managing Partner at Lerer Hippeau Ventures, discussing his transition from media executive to venture capitalist, LHV's seed-stage investment strategy in New York, and the evolution of digital media.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Harry holds 24% of the talking time here. How this is scored →

Harry as informed peer 2.3 Guest teaching 2.8 Guest disagreement 1.1 Harry pushing back 0.5
05100:0010:0020:002:06–4:37 · Harry as informed peer 1/10 Eric Hippeau's Background in Media and Technology Harry asks a broad opening question about Eric's entry into technology and venture capital. Eric provides a detailed history of Ziff Davis, SoftBank, and early investments in Yahoo.4:38–8:26 · Harry as informed peer 3/10 Comparing the Roles of Operator and Venture Capitalist Harry asks insightful follow-ups regarding the transition between operator and VC roles, specifically asking how hard a VC should press advice on founders. Eric explains the constraints of being a minority shareholder and taking long-term perspectives.8:26–11:46 · Harry as informed peer 2/10 Running Lerer Hippeau Ventures Like a Startup Harry asks whether Eric views LHV as a startup itself and what drove its early success. Eric explains LHV's early fund economics and strict focus on NY seed investments.11:46–14:34 · Harry as informed peer 1/10 Operational Support and Platform Resources at LHV Harry asks about the specific value-add seed investors offer. Eric breaks down LHV's two-tiered support system, including its proprietary technology platform and custom advisory plans.14:34–17:08 · Harry as informed peer 4/10 Common Challenges Faced by Early-Stage Startups Harry demonstrates solid knowledge of the local landscape by citing prominent NY seed funds like Boldstart and Brooklyn Bridge. Eric discusses SaaS market sizing and the collaborative nature of NY venture.17:08–19:24 · Harry as informed peer 2/10 Elements of an Exceptional Pitch Harry asks Eric to single out the best pitch he has ever seen. Eric politely declines to pick one, reframing the question to outline LHV's core evaluation criteria.19:24–22:58 · Harry as informed peer 3/10 Evolution of Media and Journalism Harry raises industry premises around dying long-form journalism and disappearing ad dollars. Eric refutes both premises, explaining media unit economics and digital ad migration from television.22:58–26:25 · Harry as informed peer 2/10 Quickfire Round In the quickfire round, Harry asks direct questions about Yahoo and top VCs. Eric gives candid, sharp responses, flatly answering 'Of course not' regarding keeping Marissa Mayer.2:06–4:37 · Guest teaching 2/10 Eric Hippeau's Background in Media and Technology Harry asks a broad opening question about Eric's entry into technology and venture capital. Eric provides a detailed history of Ziff Davis, SoftBank, and early investments in Yahoo.4:38–8:26 · Guest teaching 3/10 Comparing the Roles of Operator and Venture Capitalist Harry asks insightful follow-ups regarding the transition between operator and VC roles, specifically asking how hard a VC should press advice on founders. Eric explains the constraints of being a minority shareholder and taking long-term perspectives.8:26–11:46 · Guest teaching 2/10 Running Lerer Hippeau Ventures Like a Startup Harry asks whether Eric views LHV as a startup itself and what drove its early success. Eric explains LHV's early fund economics and strict focus on NY seed investments.11:46–14:34 · Guest teaching 3/10 Operational Support and Platform Resources at LHV Harry asks about the specific value-add seed investors offer. Eric breaks down LHV's two-tiered support system, including its proprietary technology platform and custom advisory plans.14:34–17:08 · Guest teaching 2/10 Common Challenges Faced by Early-Stage Startups Harry demonstrates solid knowledge of the local landscape by citing prominent NY seed funds like Boldstart and Brooklyn Bridge. Eric discusses SaaS market sizing and the collaborative nature of NY venture.17:08–19:24 · Guest teaching 3/10 Elements of an Exceptional Pitch Harry asks Eric to single out the best pitch he has ever seen. Eric politely declines to pick one, reframing the question to outline LHV's core evaluation criteria.19:24–22:58 · Guest teaching 5/10 Evolution of Media and Journalism Harry raises industry premises around dying long-form journalism and disappearing ad dollars. Eric refutes both premises, explaining media unit economics and digital ad migration from television.22:58–26:25 · Guest teaching 2/10 Quickfire Round In the quickfire round, Harry asks direct questions about Yahoo and top VCs. Eric gives candid, sharp responses, flatly answering 'Of course not' regarding keeping Marissa Mayer.2:06–4:37 · Guest disagreement 0/10 Eric Hippeau's Background in Media and Technology Harry asks a broad opening question about Eric's entry into technology and venture capital. Eric provides a detailed history of Ziff Davis, SoftBank, and early investments in Yahoo.4:38–8:26 · Guest disagreement 1/10 Comparing the Roles of Operator and Venture Capitalist Harry asks insightful follow-ups regarding the transition between operator and VC roles, specifically asking how hard a VC should press advice on founders. Eric explains the constraints of being a minority shareholder and taking long-term perspectives.8:26–11:46 · Guest disagreement 0/10 Running Lerer Hippeau Ventures Like a Startup Harry asks whether Eric views LHV as a startup itself and what drove its early success. Eric explains LHV's early fund economics and strict focus on NY seed investments.11:46–14:34 · Guest disagreement 0/10 Operational Support and Platform Resources at LHV Harry asks about the specific value-add seed investors offer. Eric breaks down LHV's two-tiered support system, including its proprietary technology platform and custom advisory plans.14:34–17:08 · Guest disagreement 0/10 Common Challenges Faced by Early-Stage Startups Harry demonstrates solid knowledge of the local landscape by citing prominent NY seed funds like Boldstart and Brooklyn Bridge. Eric discusses SaaS market sizing and the collaborative nature of NY venture.17:08–19:24 · Guest disagreement 2/10 Elements of an Exceptional Pitch Harry asks Eric to single out the best pitch he has ever seen. Eric politely declines to pick one, reframing the question to outline LHV's core evaluation criteria.19:24–22:58 · Guest disagreement 3/10 Evolution of Media and Journalism Harry raises industry premises around dying long-form journalism and disappearing ad dollars. Eric refutes both premises, explaining media unit economics and digital ad migration from television.22:58–26:25 · Guest disagreement 3/10 Quickfire Round In the quickfire round, Harry asks direct questions about Yahoo and top VCs. Eric gives candid, sharp responses, flatly answering 'Of course not' regarding keeping Marissa Mayer.2:06–4:37 · Harry pushing back 0/10 Eric Hippeau's Background in Media and Technology Harry asks a broad opening question about Eric's entry into technology and venture capital. Eric provides a detailed history of Ziff Davis, SoftBank, and early investments in Yahoo.4:38–8:26 · Harry pushing back 2/10 Comparing the Roles of Operator and Venture Capitalist Harry asks insightful follow-ups regarding the transition between operator and VC roles, specifically asking how hard a VC should press advice on founders. Eric explains the constraints of being a minority shareholder and taking long-term perspectives.8:26–11:46 · Harry pushing back 0/10 Running Lerer Hippeau Ventures Like a Startup Harry asks whether Eric views LHV as a startup itself and what drove its early success. Eric explains LHV's early fund economics and strict focus on NY seed investments.11:46–14:34 · Harry pushing back 0/10 Operational Support and Platform Resources at LHV Harry asks about the specific value-add seed investors offer. Eric breaks down LHV's two-tiered support system, including its proprietary technology platform and custom advisory plans.14:34–17:08 · Harry pushing back 0/10 Common Challenges Faced by Early-Stage Startups Harry demonstrates solid knowledge of the local landscape by citing prominent NY seed funds like Boldstart and Brooklyn Bridge. Eric discusses SaaS market sizing and the collaborative nature of NY venture.17:08–19:24 · Harry pushing back 0/10 Elements of an Exceptional Pitch Harry asks Eric to single out the best pitch he has ever seen. Eric politely declines to pick one, reframing the question to outline LHV's core evaluation criteria.19:24–22:58 · Harry pushing back 1/10 Evolution of Media and Journalism Harry raises industry premises around dying long-form journalism and disappearing ad dollars. Eric refutes both premises, explaining media unit economics and digital ad migration from television.22:58–26:25 · Harry pushing back 1/10 Quickfire Round In the quickfire round, Harry asks direct questions about Yahoo and top VCs. Eric gives candid, sharp responses, flatly answering 'Of course not' regarding keeping Marissa Mayer.

speaking balance: gold is Harry, purple is the guest (3 minute bins)

0:00 · Harry 76.3% · guest 23.7%0:00 · Harry 76.3% · guest 23.7%3:00 · Harry 17.4% · guest 82.6%3:00 · Harry 17.4% · guest 82.6%6:00 · Harry 19.1% · guest 80.9%6:00 · Harry 19.1% · guest 80.9%9:00 · Harry 15.8% · guest 84.2%9:00 · Harry 15.8% · guest 84.2%12:00 · Harry 4.6% · guest 95.4%12:00 · Harry 4.6% · guest 95.4%15:00 · Harry 17.2% · guest 82.8%15:00 · Harry 17.2% · guest 82.8%18:00 · Harry 15.2% · guest 84.8%18:00 · Harry 15.2% · guest 84.8%21:00 · Harry 13.8% · guest 86.2%21:00 · Harry 13.8% · guest 86.2%24:00 · Harry 24.2% · guest 75.8%24:00 · Harry 24.2% · guest 75.8%27:00 · Harry 100% · guest 0%27:00 · Harry 100% · guest 0%
Sharpest disagreement ▶ 20:58 Eric refutes disappearing ad dollar premise

When Harry asks if disappearing ad dollars are a major concern, Eric directly refutes the premise, stating ad dollars are not disappearing but rather shifting rapidly from TV to digital video.

Hardest push from Harry ▶ 7:32 Harry presses on VC advice enforcement

Harry refuses to accept a generic answer on founder advisory, pressing Eric on exactly how far a VC should push their advice when they strongly believe in a direction.

Biggest teaching moment ▶ 19:46 Eric re-educates on long-form journalism history

Eric reframes Harry's concern about dying long-form journalism by educating him that long-form content never had a mass audience historically and actually reaches larger audiences today due to digital scale.

Harry holds his own ▶ 15:43 Harry names specific NY seed funds

Harry demonstrates strong industry knowledge by specifically calling out active NY seed funds and founders like Ed Sim at Boldstart, FF, and Brooklyn Bridge to contextualize the local market.

the scores for every segment, with the reasoning behind each
ChapterTopicHarry as informed peerGuest teachingGuest disagreementHarry pushing backWhy
Eric Hippeau's Background in Media and Technology 1200 Harry asks a broad opening question about Eric's entry into technology and venture capital. Eric provides a detailed history of Ziff Davis, SoftBank, and early investments in Yahoo.
Comparing the Roles of Operator and Venture Capitalist 3312 Harry asks insightful follow-ups regarding the transition between operator and VC roles, specifically asking how hard a VC should press advice on founders. Eric explains the constraints of being a minority shareholder and taking long-term perspectives.
Running Lerer Hippeau Ventures Like a Startup 2200 Harry asks whether Eric views LHV as a startup itself and what drove its early success. Eric explains LHV's early fund economics and strict focus on NY seed investments.
Operational Support and Platform Resources at LHV 1300 Harry asks about the specific value-add seed investors offer. Eric breaks down LHV's two-tiered support system, including its proprietary technology platform and custom advisory plans.
Common Challenges Faced by Early-Stage Startups 4200 Harry demonstrates solid knowledge of the local landscape by citing prominent NY seed funds like Boldstart and Brooklyn Bridge. Eric discusses SaaS market sizing and the collaborative nature of NY venture.
Elements of an Exceptional Pitch 2320 Harry asks Eric to single out the best pitch he has ever seen. Eric politely declines to pick one, reframing the question to outline LHV's core evaluation criteria.
Evolution of Media and Journalism 3531 Harry raises industry premises around dying long-form journalism and disappearing ad dollars. Eric refutes both premises, explaining media unit economics and digital ad migration from television.
Quickfire Round 2231 In the quickfire round, Harry asks direct questions about Yahoo and top VCs. Eric gives candid, sharp responses, flatly answering 'Of course not' regarding keeping Marissa Mayer.

Statements from this episode (12)

Assertion Supported
SoftBank Owned a Third of Yahoo at Its IPO
“SoftBank then ended up owning, as you'll recall a third of Yahoo at the IPO.”
Eric Hippeau Dec 21, 2015 ▶ 3:27
Disclosure
Lerer Hippeau's first fund was $8.5 million
“Our first fund was very, very small. It was eight and a half million dollars.”
Eric Hippeau Dec 21, 2015 ▶ 9:03
Disclosure
Hippeau: About 70% of Lerer Hippeau's investments are in New York
“So about 70% of our companies are in in New York itself.”
Eric Hippeau Dec 21, 2015 ▶ 10:46
Disclosure
Lerer Hippeau employs a full-time engineer for its founder tech platform
“We have a product, we have a technology platform, and one of our team members is a full-time engineer.”
Eric Hippeau Dec 21, 2015 ▶ 12:05
Insight
Hippeau: Seed-stage execution follows well-known steps with little mystery
“What they have to do are well-known steps. There's no, there's not a lot of mystery in what needs to be done.”
Eric Hippeau Dec 21, 2015 ▶ 14:06
Insight
Hippeau: Early venture timing loses money, late timing yields me-too companies
“Because if you invest too early it's not gonna, the market's not gonna develop, and you, you'll lose all your money, and if you invest too late, you're gonna be investing in some sort of a me-too company.”
Eric Hippeau Dec 21, 2015 ▶ 18:05
Insight
Hippeau: Successful pitches focus on core concepts, not data overload
“So the very best pitches to me are pitches that are relatively simple, you know, go right to the point. Don't try to shower you with too much data. You can always put the data in the appendix because ultimately it's not going to be about the data. Ultimately i…”
Eric Hippeau Dec 21, 2015 ▶ 19:01
Assertion Not checkable as stated
Hippeau: Digital scale gives long-form journalism a larger audience than print
“Today because of the sheer size of the audience being, you know, multiply, Bigger than it was in the past. You will, if you want to do long-form journalism, as such as we do on BuzzFeed, and we did some at the African Post as well, you, by default, you're goin…”
Eric Hippeau Dec 21, 2015 ▶ 20:09
Prediction Not checkable as stated
Eric Hippeau: Long-form journalism will never be the most popular media format
“It's never going to be the most popular form of journalism, because it was never the most popular form of journalism.”
Eric Hippeau Dec 21, 2015 ▶ 20:36
Assertion Not checkable as stated
Hippeau: BuzzFeed's proprietary technology drives its content virality and popularity
“He has benefited from the fact that he's built an enormous amount of technology that allows him to then develop the kind of content that becomes the most popular.”
Eric Hippeau Dec 21, 2015 ▶ 22:22
Opinion
Eric Hippeau: Yahoo must sell itself to better management
“No, Yahoo is not game over, and Yahoo needs, needs probably needs to sell itself to people who can manage it better and Yahoo has an enormous amount of assets namely, it's taken Alibaba, it's taken Yahoo Japan, and its own its own own and operated website whic…”
Eric Hippeau Dec 21, 2015 ▶ 23:16
Prediction Open · timeframe Dec 2020
Eric Hippeau predicts drone racing will become as popular as video games
“We believe that drones are going to have the same popularity that video games and that, that people are going to want to raise them, people are going to develop themselves as professional or semi-professional pilots that it's a very visual because these drones…”
Eric Hippeau Dec 21, 2015 ▶ 25:40
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