In the 53rd episode of the 20 Minutes VC, host Harry Stebbings interviews Jonathan Lipov from Union Square Ventures, exploring his transition from a product manager at Appsfire and creator of the 50 app to a venture capitalist. Jonathan discusses his product management experience in Tel Aviv, his cognitive science background, and his design and coding skills. The conversation delves into Union Square Ventures' thesis-driven investment approach, the impact of network effects on business defensibility, and the importance of blogging for intellectual development. Additionally, Jonathan shares insights on the future of SMS as a primary mobile identifier, the potential of decentralized marketplaces like Openbazaar, and the unique challenges of investing in the sports sector. The episode also touches on the role of central authorities in marketplaces and the personal interests that guide sector specialization within venture capital firms.
Hello and welcome to the 53rd episode of the 20 Minutes VC with your host Harry Stebings. And this week we're going to borrow from the magnificent Frank Sina Archer, in.
The quote is an introduction to the podcast episode, setting the stage for the New York-focused feature and introducing the host, Harry Stebings.
Jonathan joins us today from the investment team at the incredible Union Square Ventures in New York, but he has lived for the last few years in Tel Aviv, where he most recently worked as a product manager at Appsfire.
This quote provides an overview of Jonathan Lipov's professional background and his connection to Union Square Ventures and his past in Tel Aviv.
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The quote is a promotional message for Hiring Screen's candidate directory feature, suggesting it as a technological upgrade for recruitment processes.
Well, I was a product manager at Appsfire in Tel Aviv. I had been there for about four years and really gotten to know the mobile ecosystem really well. I think that was one of the reasons they brought me on here.
This quote explains how Jonathan Lipov's experience in the mobile ecosystem contributed to his shift from product management to venture capital at Union Square Ventures.
Well, the initial screening involved recording two two minute videos. I think the questions were, what aspects of tech most inspire you? Or what are your greatest inspirations? And the other question was, I think, just to tell them a little bit about myself.
The quote describes the initial part of the interview process for the analyst position at Union Square Ventures, which included recording videos to answer specific questions.
Well, I think I've learned more in this ten months than any ten months of my entire life. That probably includes the ten months from the day I was born till when I started walking.
This quote emphasizes the significant learning experience Jonathan Lipov has had at Union Square Ventures, comparing it to the most formative times of his life.
I think they had a real belief that networks would be the defensible quality of the Internet, or the defensible thing about building a business on the Internet, whereas, let's say, in prior businesses like Microsoft Office or Windows or any other software that came packaged in a CD or even a box, that reliability was actually one of the primary differentiators and probably also features.
The quote explains the strategic belief of Union Square Ventures' founders that network effects are a fundamental aspect of building a defensible internet business.
And talking of kind of networking, it seems very much that Fred's blog is a way to communicate that USV's money is a form of smart money, if you know what I mean.
This quote discusses the importance of Fred's blog as a means of demonstrating Union Square Ventures' value proposition, particularly in terms of the expertise and networking opportunities they provide to entrepreneurs.
Yeah, I couldn't recommend it more highly. I mean, it's probably not for everyone, but for me, the reason why I do recommend it is because there's nothing.
The quote suggests that blogging is a highly recommended activity for those interested in sharing their thoughts and interests, as it can lead to opportunities like the one Lipov experienced with Union Square Ventures.
"But when you're formulating it for a blog post and something that's meant to be consumed, you really need to think deeply and figure out every single angle so that you're communicating something which is coherent and clear and powerful."
This quote emphasizes the depth of thought and consideration required when creating a blog post intended for an audience. It highlights the importance of clarity, coherence, and the impact of the message being communicated.
"I built it on rails, okay, but I blog probably now about once every three weeks."
Jonathan mentions the platform he uses for his blog (Rails) and his current blogging frequency, which provides insight into his personal schedule and technical choices for blogging.
"I certainly don't believe SMS is dead. And in some ways, you could argue that it's becoming ever more relevant as we move from the desktop to mobile."
Jonathan argues against the notion that SMS is becoming obsolete and instead believes it is gaining importance in the mobile context, particularly as a means of user identification.
"They just send you an SMS and say, all right, your reservation is confirmed. Do you have any questions?"
This quote describes the user experience with the Reserve app, highlighting the simplicity and directness of SMS communication for confirming reservations and facilitating further interaction.
"One of the things that we found frustrating were that, one, there's a lot of great advanced analytics that are happening around pro football and other sports that weren't really in a terribly digestible format."
Jonathan discusses the motivation behind the creation of 50 app, which is to present complex football analytics in a user-friendly manner, enhancing the viewing experience for fans.
"And as an analyst at USV. Are you looking specifically at the sports sector or are you looking multisector?"
This incomplete quote suggests a question about Jonathan's role as an analyst at USV, inquiring whether his analysis is focused on sports or spans multiple sectors. However, the response is not included in the transcript.
"Yeah, well, the 50 thing and the sports thing is sort of a personal interest."
This quote highlights Jonathan's personal interest areas within venture capital.
"And a tough one for vcs, just because a lot of that industry is locked down by intellectual property and things like that, which actually is something that we had to deal with with 50."
Jonathan explains the difficulty in investing in the 50+ and sports sectors due to intellectual property issues.
"There's two analysts at USB, myself and Joel Monegro. And we do look at particular sectors."
Jonathan mentions his and Joel's roles as analysts at USB, focusing on specific sectors.
"Well, one of the things that's unique about USV, insofar as I can tell, because this is the only venture capital firm that I've ever worked at, and I've only been here for ten months, is that we're thesis driven."
Jonathan explains the unique thesis-driven approach of USB compared to other VC firms.
"So in contrast to some firms, which are more, I think, deal flow oriented... we tend to follow our thesis and our intellectual interests quite a bit more."
He contrasts USB's approach with other firms that are more focused on the available market deals.
"But then figure one walks in and, well, I shouldn't say they walked in because I think Andy had heard or read about them somewhere and gotten in touch and gotten to know with them over time. But then you stumble across a figure one and it's not as if you ever said, oh, we were waiting for this, but all of a sudden it totally makes sense."
Jonathan describes how USB's investment in Figure One aligned with their thesis in an unexpected but fitting manner.
"It's a book called the structure of scientific revolutions, okay? Which when I was a science student in undergraduate, I read in a science, technology and society class."
Jonathan identifies "The Structure of Scientific Revolutions" as his favorite book and notes its influence on him during his undergraduate studies.
"And then once you have a new framework, it sort of like flips a switch, right? And suddenly the whole framework breaks down and you can build a whole framework anew from that."
He explains the concept of paradigm shifts from the book and how it relates to his perspective on investing.
"It's actually quite remarkable that you think that the entirety of the iTunes catalog is available to you all at once, whereas there are some cases on Spotify where I run into content that I would like that isn't know."
Jonathan expresses his appreciation for the comprehensive access provided by Apple Music compared to Spotify's limitations.
"There's some aspect of the radio which I think is there might be something fundamental about it that we might have looked over in this rush to make everything on demand."
He contemplates the potential undervalued aspect of radio in the era of on-demand music streaming.
"The things not to like is it has sort of like a daddish quality. I mean, if you look at really. I have trouble parsing the interface, but there's like that connect section, and there's."
Jonathan critiques the user interface of Apple Music, suggesting it is not as intuitive as it could be.
"Just choosing between rock, jazz, classic rock, rap, I mean, just hitting those circles, there's something that feels like it's intended to be playful, but actually feels quite sterile."
The quote reflects Jonathan Lipov's view that the method of selecting music genres in Apple Music lacks the warmth and engagement that users might expect from a music platform.
"The one thing that I found that I think is compelling also about Apple Music is... how an artist can connect directly with their fans these days."
The quote highlights a positive feature of Apple Music, where artists have the ability to connect with fans, potentially giving it an edge over competitors like Spotify.
"I think they're so well capitalized that they can figure out a way to make their model work with W-2s... They'll find a way to work them out."
This quote suggests confidence in Uber's ability to navigate and adapt to employment regulations, despite the complexities involved.
"I probably would have recommended myself to have kept a much more open mind from an earlier age."
The quote encapsulates Lipov's change in perspective over time and underscores the value of maintaining an open mind, especially in the fast-evolving tech industry.
"Openbazaar and Obi Wan are doing some really unique things that would enable decentralized marketplaces."
This quote emphasizes the innovative approach of OpenBazaar in creating a new kind of marketplace that operates without central authorities, leveraging blockchain technology.
"It's been a real pleasure. Thank you for having me, as always."
The quote is Jonathan Lipov's courteous conclusion to the interview, expressing gratitude for the opportunity to share his thoughts.