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Feb 18, 2019 · 30m · 20vc

20VC: AOL Founder, Steve Case on Why The Best Venture Investments of The Next 10 Years Will Likely Not Be In The Valley, Why The CEO Must Be The Shock Absorber For Company Morale and Why Vision Without Execution is Hallucination

Steve Case · 21m spoken Harry Stebbings · 8m 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 AOL co-founder Steve Case on the decentralization of venture capital, the Rise of the Rest initiative, and essential leadership strategies for startup founders. Case shares lessons from scaling AOL and outlines why the next decade of breakout tech investments will emerge outside Silicon Valley.

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 29.3% of the talking time here. How this is scored →

Harry as informed peer 2.6 Guest teaching 4.0 Guest disagreement 1.4 Harry pushing back 1.0
05100:0010:0020:0030:003:20–5:53 · Harry as informed peer 2/10 Steve Case's Entrepreneurial Journey and Shift to Investing Harry opens the interview with standard biographical questions, citing an audience question from Brad Feld about transitioning from operator to investor. Steve provides foundational background on founding AOL and setting up Revolution's fund structure.5:53–10:02 · Harry as informed peer 3/10 Navigating Economic Cycles and Early Venture Capital Mentality Harry frames a question around historical market downturns like 2000 and 2008 to ask if bad times create the best companies. Steve gently reframes this, noting that while downturns present valuation opportunities, exceptional entrepreneurs build great breakout companies in all market cycles.10:02–17:19 · Harry as informed peer 3/10 The Rise of the Rest Initiative and the Third Wave of Tech Harry probes into pricing sensitivity and capital supply dynamics. Steve educates the host using NVCA data showing 75% of VC money goes to just three states, explaining the valuation arbitrage present in non-coastal cities.17:19–23:33 · Harry as informed peer 3/10 Perseverance, Founder Morale, and the Execution Imperative Harry challenges Steve on the primary function of a CEO, contrasting Steve's view with other guests who emphasize management upscaling. Steve expands on the CEO's role as a morale shock absorber and evangelist, quoting Thomas Edison on vision versus execution.23:33–28:21 · Harry as informed peer 2/10 Quickfire Round: Books, Board Advice, and Silicon Valley Critiques In the quickfire round, Harry asks Steve what he would change about Silicon Valley. Steve offers a sharp critique of Valley insularity and cockiness, warning investors there not to repeat the hubris of historical industrial hubs like Detroit.3:20–5:53 · Guest teaching 3/10 Steve Case's Entrepreneurial Journey and Shift to Investing Harry opens the interview with standard biographical questions, citing an audience question from Brad Feld about transitioning from operator to investor. Steve provides foundational background on founding AOL and setting up Revolution's fund structure.5:53–10:02 · Guest teaching 4/10 Navigating Economic Cycles and Early Venture Capital Mentality Harry frames a question around historical market downturns like 2000 and 2008 to ask if bad times create the best companies. Steve gently reframes this, noting that while downturns present valuation opportunities, exceptional entrepreneurs build great breakout companies in all market cycles.10:02–17:19 · Guest teaching 5/10 The Rise of the Rest Initiative and the Third Wave of Tech Harry probes into pricing sensitivity and capital supply dynamics. Steve educates the host using NVCA data showing 75% of VC money goes to just three states, explaining the valuation arbitrage present in non-coastal cities.17:19–23:33 · Guest teaching 4/10 Perseverance, Founder Morale, and the Execution Imperative Harry challenges Steve on the primary function of a CEO, contrasting Steve's view with other guests who emphasize management upscaling. Steve expands on the CEO's role as a morale shock absorber and evangelist, quoting Thomas Edison on vision versus execution.23:33–28:21 · Guest teaching 4/10 Quickfire Round: Books, Board Advice, and Silicon Valley Critiques In the quickfire round, Harry asks Steve what he would change about Silicon Valley. Steve offers a sharp critique of Valley insularity and cockiness, warning investors there not to repeat the hubris of historical industrial hubs like Detroit.3:20–5:53 · Guest disagreement 0/10 Steve Case's Entrepreneurial Journey and Shift to Investing Harry opens the interview with standard biographical questions, citing an audience question from Brad Feld about transitioning from operator to investor. Steve provides foundational background on founding AOL and setting up Revolution's fund structure.5:53–10:02 · Guest disagreement 1/10 Navigating Economic Cycles and Early Venture Capital Mentality Harry frames a question around historical market downturns like 2000 and 2008 to ask if bad times create the best companies. Steve gently reframes this, noting that while downturns present valuation opportunities, exceptional entrepreneurs build great breakout companies in all market cycles.10:02–17:19 · Guest disagreement 2/10 The Rise of the Rest Initiative and the Third Wave of Tech Harry probes into pricing sensitivity and capital supply dynamics. Steve educates the host using NVCA data showing 75% of VC money goes to just three states, explaining the valuation arbitrage present in non-coastal cities.17:19–23:33 · Guest disagreement 1/10 Perseverance, Founder Morale, and the Execution Imperative Harry challenges Steve on the primary function of a CEO, contrasting Steve's view with other guests who emphasize management upscaling. Steve expands on the CEO's role as a morale shock absorber and evangelist, quoting Thomas Edison on vision versus execution.23:33–28:21 · Guest disagreement 3/10 Quickfire Round: Books, Board Advice, and Silicon Valley Critiques In the quickfire round, Harry asks Steve what he would change about Silicon Valley. Steve offers a sharp critique of Valley insularity and cockiness, warning investors there not to repeat the hubris of historical industrial hubs like Detroit.3:20–5:53 · Harry pushing back 0/10 Steve Case's Entrepreneurial Journey and Shift to Investing Harry opens the interview with standard biographical questions, citing an audience question from Brad Feld about transitioning from operator to investor. Steve provides foundational background on founding AOL and setting up Revolution's fund structure.5:53–10:02 · Harry pushing back 1/10 Navigating Economic Cycles and Early Venture Capital Mentality Harry frames a question around historical market downturns like 2000 and 2008 to ask if bad times create the best companies. Steve gently reframes this, noting that while downturns present valuation opportunities, exceptional entrepreneurs build great breakout companies in all market cycles.10:02–17:19 · Harry pushing back 1/10 The Rise of the Rest Initiative and the Third Wave of Tech Harry probes into pricing sensitivity and capital supply dynamics. Steve educates the host using NVCA data showing 75% of VC money goes to just three states, explaining the valuation arbitrage present in non-coastal cities.17:19–23:33 · Harry pushing back 2/10 Perseverance, Founder Morale, and the Execution Imperative Harry challenges Steve on the primary function of a CEO, contrasting Steve's view with other guests who emphasize management upscaling. Steve expands on the CEO's role as a morale shock absorber and evangelist, quoting Thomas Edison on vision versus execution.23:33–28:21 · Harry pushing back 1/10 Quickfire Round: Books, Board Advice, and Silicon Valley Critiques In the quickfire round, Harry asks Steve what he would change about Silicon Valley. Steve offers a sharp critique of Valley insularity and cockiness, warning investors there not to repeat the hubris of historical industrial hubs like Detroit.

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

0:00 · Harry 100% · guest 0%0:00 · Harry 100% · guest 0%3:00 · Harry 33.4% · guest 66.6%3:00 · Harry 33.4% · guest 66.6%6:00 · Harry 14.9% · guest 85.1%6:00 · Harry 14.9% · guest 85.1%9:00 · Harry 9.9% · guest 90.1%9:00 · Harry 9.9% · guest 90.1%12:00 · Harry 15.1% · guest 84.9%12:00 · Harry 15.1% · guest 84.9%15:00 · Harry 11.4% · guest 88.6%15:00 · Harry 11.4% · guest 88.6%18:00 · Harry 7.2% · guest 92.8%18:00 · Harry 7.2% · guest 92.8%21:00 · Harry 16.3% · guest 83.7%21:00 · Harry 16.3% · guest 83.7%24:00 · Harry 10.9% · guest 89.1%24:00 · Harry 10.9% · guest 89.1%27:00 · Harry 58.8% · guest 41.2%27:00 · Harry 58.8% · guest 41.2%30:00 · Harry 100% · guest 0%30:00 · Harry 100% · guest 0%
Sharpest disagreement ▶ 25:04 Critiquing Silicon Valley's Insular Mindset

Steve delivers his most contrarian critique, calling Silicon Valley venture capitalists cocky and insular for believing non-coastal areas cannot produce world-changing companies, comparing their mindset to Detroit a century ago.

 Hardest push from Harry ▶ 21:19 Challenging the Standard CEO Primary Role

Harry refuses to accept a standard consensus framing from previous guests that upscaling management is a CEO's core duty, directly asking Steve to confirm or counter that thesis.

 Biggest teaching moment ▶ 12:11 Illuminating Venture Capital Geographic Imbalance

Steve educates Harry with concrete industry metrics from the NVCA, demonstrating that half of all American VC money flows into California alone and 75% goes to just three states.

 Harry holds his own ▶ 5:53 Framing Historical Market Cycles across Two Eras

Harry demonstrates deep research and domain context by highlighting Steve's dual perspective through both the 2000 tech crash as an operator and the 2008 financial crisis as an investor.
the scores for every segment, with the reasoning behind each
ChapterTopicHarry as informed peerGuest teachingGuest disagreementHarry pushing backWhy
Steve Case's Entrepreneurial Journey and Shift to Investing 2300 Harry opens the interview with standard biographical questions, citing an audience question from Brad Feld about transitioning from operator to investor. Steve provides foundational background on founding AOL and setting up Revolution's fund structure.
Navigating Economic Cycles and Early Venture Capital Mentality 3411 Harry frames a question around historical market downturns like 2000 and 2008 to ask if bad times create the best companies. Steve gently reframes this, noting that while downturns present valuation opportunities, exceptional entrepreneurs build great breakout companies in all market cycles.
The Rise of the Rest Initiative and the Third Wave of Tech 3521 Harry probes into pricing sensitivity and capital supply dynamics. Steve educates the host using NVCA data showing 75% of VC money goes to just three states, explaining the valuation arbitrage present in non-coastal cities.
Perseverance, Founder Morale, and the Execution Imperative 3412 Harry challenges Steve on the primary function of a CEO, contrasting Steve's view with other guests who emphasize management upscaling. Steve expands on the CEO's role as a morale shock absorber and evangelist, quoting Thomas Edison on vision versus execution.
Quickfire Round: Books, Board Advice, and Silicon Valley Critiques 2431 In the quickfire round, Harry asks Steve what he would change about Silicon Valley. Steve offers a sharp critique of Valley insularity and cockiness, warning investors there not to repeat the hubris of historical industrial hubs like Detroit.

Statements from this episode (12)

Assertion Partly supported
Case: Only 3% of people were online averaging 1 hour weekly in 1985
“We started only three percent of people were online, and those three percent were online an hour a week on average, so it was pretty early, and I spent the next 15 or so years building that company, and then when we merged AOL with Time Warner, I stepped down …”
Steve Case Feb 18, 2019 ▶ 4:05
Insight
Case: Best VCs help in key areas and stay out of daily operations
“And I think the best venture investors really focus on helping in a few areas and kind of staying out of the way in most aspects of running the company.”
Steve Case Feb 18, 2019 ▶ 5:45
Assertion Partly supported
Case: AOL went public at a $70M valuation before peaking at $160B
“We were the first internet company to go public in the 1992. We raised ten million dollars in our IPO. The market value that day was seventy million dollars. And seven, eight years later, when we were negotiating the merger with Time Warner, it had gone from s…”
Steve Case Feb 18, 2019 ▶ 6:43
Disclosure
Case: Revolution ignores market cycles when evaluating new venture investments
“So I don't really look at the market cycles, particularly when we're looking at making new investments.”
Steve Case Feb 18, 2019 ▶ 9:14
Assertion Partly supported
Steve Case: 75% of US venture capital goes to three states
“In the United States last year, according to the NVCA that tracks us, 75% of venture capital went to three states. You know, California, New York, and Massachusetts, 50%. Half of America's venture capital went to one state. California.”
Steve Case Feb 18, 2019 ▶ 12:20
Opinion
Steve Case: Silicon Valley startups are overvalued relative to regional startups
“In general, the companies in places like Silicon Valley, New York City, and Boston probably are a little overvalued because of the supply-demand dynamic, because most of the venture capital is based there, and most of the venture capitalists want to be able to…”
Steve Case Feb 18, 2019 ▶ 13:27
Assertion Not checkable as stated
Steve Case: Over 95% of Silicon Valley TechCrunch audience moved from elsewhere
“I was speaking at TechCrunch Disrupt Conference in Silicon Valley a couple of months ago, and I don't know, there may be a 1015 hundred people in the audience. I said, I want to see a show of hands. How many of you are from the Bay Area? And it was less than f…”
Steve Case Feb 18, 2019 ▶ 16:41
Insight
Steve Case: Startup Breakthroughs Usually Take a Decade of Slog
“Far more often, it's a slog, and it's a decade before you kind of really break through, and through that experience, I now realize that, you know, a revolution sometimes happens in more evolutionary ways.”
Steve Case Feb 18, 2019 ▶ 18:13
Insight
Steve Case: A Startup CEO Must Act as a Morale Shock Absorber
“I always recognized, particularly as a leader, particularly as the CEO, that I had to be A little bit of a shock absorber for the company, and when everybody was talking about how great they were, remind them that super competitive market, and remind them that…”
Steve Case Feb 18, 2019 ▶ 19:54
Insight
Steve Case: Vision Without Execution Is Hallucination
“Vision without execution is hallucination. And so it's a reminder that vision is important, but execution is more important. And that comes down to people and priorities and creating that team dynamic.”
Steve Case Feb 18, 2019 ▶ 23:14
Insight
Steve Case: First-time board members should listen more than speak
“Spend more time listening than talking and just trying to really understand the dynamics of the board, some of the challenges and opportunities of the company, and be more surgical in terms of ways you intervene.”
Steve Case Feb 18, 2019 ▶ 24:22
Opinion
Case: Silicon Valley is overly insular and top returns will occur elsewhere
“Silicon Valley has gotten a little insular, sometimes a little cocky, and when I hear people say that essentially no breakout company, you know, no big, iconic, successful company can ever start outside of Silicon Valley, I think that's crazy, and so getting p…”
Steve Case Feb 18, 2019 ▶ 25:10
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