November 21, 2023 • 1hr 3min

Lior Susan - Leave the World Better than You Found It - [Invest Like the Best, EP.353]

Invest Like the Best with Patrick O'Shaughnessy

In this episode, Patrick O'Shaughnessy speaks with Lior Susan, founder of Eclipse Ventures, about the October 7 Hamas terrorist attacks on Israel and their broader implications. Susan, an Israeli-American and former special forces soldier, provides his perspective on the conflict, radical Islamic terrorism, disinformation, and the role of technology in strengthening Western democracies. The conversation covers Susan's background, his views on the current situation in Israel and Gaza, the threat of radical Islam, the spread of anti-Western propaganda, rebuilding American manufacturing, and pathways to peace in the Middle East. Susan argues for a united Western response to terrorism while also advocating for supporting Palestinian civilians and economic development.

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Key Takeaways

The October 7 Hamas attack on Israel killed 1,400 Israeli civilians and kidnapped 228 people, including women, children and the elderly
Lior Susan views radical Islamic terrorism as an existential threat to Western values and way of life, funded and supported by Iran
He believes social media and disinformation are being weaponized to spread anti-Western propaganda, especially to youth
Susan argues rebuilding America's industrial and manufacturing base is critical for national security and countering adversaries
He sees technology and innovation as key tools for strengthening Western economies and values
Susan advocates for supporting Palestinian civilians while fighting terrorist groups like Hamas
He believes in the possibility of peace through economic development and cooperation between Israelis and Arabs

Introduction

In this episode, Patrick O'Shaughnessy speaks with Lior Susan, founder of Eclipse Ventures, about the October 7 Hamas terrorist attacks on Israel and their broader implications. Susan, an Israeli-American and former special forces soldier, provides his perspective on the conflict, radical Islamic terrorism, disinformation, and the role of technology in strengthening Western democracies.

The conversation covers Susan's background, his views on the current situation in Israel and Gaza, the threat of radical Islam, the spread of anti-Western propaganda, rebuilding American manufacturing, and pathways to peace in the Middle East. Susan argues for a united Western response to terrorism while also advocating for supporting Palestinian civilians and economic development.

Topics Discussed

Lior Susan's Background (3:57)

Lior Susan grew up on a kibbutz in northern Israel before joining the Israeli special forces, where he served for 8 years. After leaving the military, he co-founded a tech startup that was acquired by Cisco. He later moved to Silicon Valley and founded Eclipse Ventures to invest in companies combining software and hardware to transform physical industries.

Grew up on a kibbutz in northern Israel
Served 8 years in Israeli special forces
Co-founded tech startup Intucel, acquired by Cisco
Moved to Silicon Valley and founded Eclipse Ventures

The October 7 Hamas Attack (9:29)

Susan recounts the details of the October 7 Hamas terrorist attack on southern Israel:

4,000 Hamas fighters invaded Israel from Gaza
1,400 Israeli civilians killed, including women, children and elderly
228 people kidnapped and taken to Gaza as hostages
Susan compares the impact to "9/11 coming from Brooklyn" for Israel

He contrasts Israel's focus on economic development and innovation with Hamas' focus on violence and destruction. Susan argues Hamas and other radical Islamic groups are funded by Iran to spread chaos and undermine Western democracies.

Historical Context of Israel and Radical Islam (14:37)

Susan provides historical context on Israel and radical Islamic terrorism:

Israel left Gaza in 2005, Hamas took control in 2007
Hamas, Hezbollah, ISIS, Al-Qaeda share radical Islamist ideology
These groups are funded by Iran to act as proxy forces
Radical Islamists reject Western values like women's rights, religious freedom
Areas controlled by these groups lack economic development

"Radical Islam is on a mission to basically control and kill anyone that don't believe in their ideology."

Anti-Israel Protests on College Campuses (19:47)

Susan expresses concern about anti-Israel protests on American college campuses:

Sees it as result of organized propaganda campaign on social media
Argues some protesters don't understand full context of conflict
Worries about rise of antisemitism in Western countries
Calls for balance between free speech and combating hate speech

"We need to wake up because in our constitution we talked about freedom of speech. Freedom of speech cannot be against safety."

Susan's Message to Palestinians (23:29)

Susan shares what he would say to Palestinians if they were listening:

Fight against terrorist groups like Hamas
Work with Israel to develop Gaza's economy
Build ports, airports, hospitals, universities
Hamas leaders live in luxury while Gazans suffer

"Gaza should be a Singapore. Do you want your kids to die by us bombing those places? Your civilians? Do you really want to live like that? Go fight. You need to be on our side. Fight those terrorists."

Susan's Plans Going Forward (28:49)

Susan discusses how he plans to spend his time in the coming months:

Continue investing in technology companies through Eclipse Ventures
Focus on rebuilding America's industrial and manufacturing base
Advocate for strengthening Western economies and values
Speak out against terrorism and spread message of peace

"My mission is to protect the principles I believe in and leave this place better than I find it for my kids and the current kids and all of us. And it's through building those companies."

Leadership in Israel and the U.S. (31:41)

Susan offers his perspective on current leadership in Israel and the U.S.:

Critical of recent Israeli leadership for not doing enough to help Palestinians
Concerned about political polarization in the U.S.
Sees lack of unity in Western leadership emboldening adversaries
Calls for leaders to unite around shared values and interests

Concern for Innocent Civilians (36:27)

Susan expresses deep concern for innocent civilians caught in the conflict:

Empathizes with Palestinian civilians in Gaza
Has spoken with Israeli Arab friends who lost family members
Wants to see end to violence and civilian casualties on all sides
Believes economic development is key to long-term peace

Role of Technology in Future Conflicts (40:47)

Susan discusses how he sees technology shaping future conflicts:

Technology and industrial capabilities more important than weapons
U.S. needs to rebuild manufacturing base for national security
Control of key industries like semiconductors is strategic
Innovation can reduce dependence on adversaries (e.g. oil from Iran)

"I believe if you want to make money, this is the right place to invest. But this is my two cents. What we are seeing here is the average check that Eclipse is writing is about $8 million in the initial check. Those industries used to be extremely capital intensive a decade ago, and that's why you saw venture investments declining in those industries."

Pathways to Effective Globalization (44:08)

Susan shares his views on globalization and international cooperation:

Globalization only works when all parties play fair
U.S. outsourced too much manufacturing in recent decades
Need to rebuild domestic industrial capabilities
Can still pursue global trade while protecting key industries

"I think globalization can happen only when everyone play fair. I do not think people play fair with us in the last 30 years."

Traits for Investment Success (48:27)

Susan outlines what he looks for when investing in companies:

Large markets with low technology penetration
Founders with deep industry expertise
Use of cutting-edge software/hardware combinations
Ability to build MVP quickly and capital-efficiently
Potential for major impact on physical industries

Constructive Steps Post-Conflict (55:17)

Susan discusses potential steps toward peace after the current conflict:

Remove terrorist groups from power in Gaza
Invest in economic development for Palestinians
Build bridges between Israelis and Arabs through business
Continue Abraham Accords-style normalization efforts
Unite Western allies against terrorism and extremism

Lessons from Strong Leadership (57:10)

Susan reflects on leadership lessons from the current crisis:

Admires resilience of Israeli tech founders continuing to run companies
Providing tactical support to portfolio companies in Israel
Importance of communicating company needs to global partners
Using business relationships to spread messages of peace

"My admiration of the resiliency of these Israeli tech founders are overwhelming and they are so freaking strong of just not giving up and knowing that the real way to win it is not with our military power is to show them that they cannot create the chaos."

Personal Reflections (1:01:04)

Susan shares his emotional journey since the October 7 attacks:

Initial desire to return to Israel and join reserves
Anger at brutality of attacks on civilians
Pain from speaking with victims' families
Compassion for suffering on both sides
Concern about rise in antisemitism globally
Renewed commitment to building a better world through technology

He concludes by sharing a touching moment with his young daughter, who comforted him during a difficult time.

Conclusion

This wide-ranging conversation provides Lior Susan's unique perspective as an Israeli-American tech investor on the October 7 Hamas attacks and their broader implications. Susan argues for a united Western response to terrorism while also advocating for supporting Palestinian civilians and economic development. He sees technology and innovation as key tools for strengthening Western economies and values in the face of threats from radical Islamic terrorism and authoritarian regimes. While acknowledging the current conflict's complexity, Susan remains hopeful that economic cooperation and shared values can eventually lead to peace in the region.