Lerer Hippeau has raised two contemporary funds — $122 million for a sixth fund dedicated to seed stage investments, to boot to $60 million for a “Seize out Fund” infected by later-stage deals.
Managing Accomplice Eric Hippeau talked about both funds will seemingly be primitive to continue the agency’s new plan: “We continue to be seed-first traders and Sleek York-first traders. We’re big believers in Sleek York.”
And whereas Hippeau acknowledged that the Sleek York ecosystem is still be observing for the extra or less big exit that makes “a bunch of members very prosperous, who will then high-tail away and launch their have confidence corporations,” he pointed to most popular success tales cherish Oracle’s acquisition of Moat and Roche’s acquisition of Flatiron Health. (Lerer Hippeau invested in Moat nonetheless no longer Flatiron; both are Sleek York-essentially essentially based.)
“There’s a big pipeline in Sleek York of corporations which have been valued within the quite a lot of millions and in some instances billions of greenbacks — a bunch of them are our corporations, nonetheless no longer constantly,” Hippeau talked about. “That’s where the energy of Sleek York is going to come from within the quick time interval, all of these corporations if fact be told popping to the surface and adding about a billion dollars of worth, one at a time.”
The agency supplied its first apply-on fund final year. At the time, Hippeau talked about it had handiest raised $28 million in affirm that the two funds will seemingly be “synced up,” which is what’s happening now.
The first Seize out Fund became once primitive to make apply-on investments in corporations that Lerer Hippeau had already backed at the seed stage, cherish Allbirds and Casper. That will continue with the contemporary fund, nonetheless Hippeau talked about it would possibly perhaps in point of fact well furthermore be primitive for Series A investments in startups that the agency didn’t attend within the initiating place, and which would possibly perhaps well now appear cherish missed opportunities.
Meanwhile, the Lerer Hippeau team has furthermore been rising, with the most popular hiring of Caitlin Strandberg (formerly vice president at FirstMark) as most necessary and Isabelle Phelps as accomplice, to boot to Amanda Mulay as senior talent manager.
“I couldn’t be extra infected to affix the most active early-stage agency in Sleek York, ethical as it gets unusual capital,” Strandberg talked about in an emailed assertion. “Lerer Hippeau has constructed an good fame as being a hands-on, accessible and priceless investor all whereas cultivating a highly efficient and engaged community. I’m expecting investing within the subsequent sizable abilities of startups, supporting our new founders and teams, and persevering with to invent a sizable tech ecosystem right here in NYC.”
Lerer Hippeau now has spherical 20 members on the team. And whereas corporations cherish Andreessen Horowitz (where Mulay primitive to work) have made their big toughen crew a selling point, Hippeau talked about that at his agency, “We don’t if fact be told prefer to have dozens of members doing this. We prefer to be very proper and if fact be told selective about how can abet.”
Quiet, he talked about that “the service that’s most in-query is abet with recruiting,” so it made sense to bring on Mulay to abet startups hire, and furthermore to abet them “space up a honest HR feature.”
Lerer Hippeau’s investment team constructed its fame in media — Hippeau became once formerly CEO at The Huffington Post, Kenneth Lerer cofounded HuffPost and is now chairman at BuzzFeed and Ben Lerer is CEO at Crew Nine Media. (The three of them are pictured at the cease of this put up.) Nonetheless with the reputedly constant data about digital media layoffs and shutdowns, would Hippeau put money into a media startup nowadays?
In actuality, the agency did attend one such startup no longer too long within the past, podcast community Wondery. Nonetheless Hippeau talked about media has “never been extra than 10 percent of our portfolio.” (A form of most popular investments embrace cryptocurrency pockets Casa and hashish talent community Vangst.)
“We cherish media, we continue to watch at media corporations, nonetheless we’re rather selective,” he talked about.