a16z: The Power Brokers

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This article reflects the views and opinions of the author and does not necessarily reflect the views or beliefs of a16z. Investment returns are included throughout this article. Past performance is not indicative of future results. See related fund returns and disclosures at the end of this piece.

Hi friends 👋 ,

Happy Friday! IT’S TIME TO WRITE about a16z.

Today, a16z is announcing $15 billion in fresh funds.

To commemorate the occasion, I’m writing a Deep Dive on the Firm. I spoke with Firm’s GPs, LPs, ~$200 billion worth of portfolio founders, reviewed documents and presentations, and analyzed returns data for a16z’s funds since inception (see appendix with disclosure information at the end).

There is a lot of writing on the internet about what’s wrong with a16z’s approach. You probably know the arguments. They’ve followed the firm since inception.

I think it is much more interesting to understand just what it is that all of these smart people who have been right in the past think it is that they’re doing now.

And look, I am about as far from an unbiased observer as anyone without an @a16z.com email address could be.

For more than two years, I was an advisor to a16z crypto (but am currently not compensated by the firm). Marc Andreessen and Chris Dixon are LPs in not boring capital. From time to time, I am on the same cap table as a16z. I am friends with a lot of people in the Firm and with most of the New Media team. I partner with, like, and respect these people.

But look, we’re not counting on me to analyze whether a16z’s pitch at this moment in time is worth investing in. Sophisticated institutional LPs have decided, to the tune of $15 billion, to do so. It will take a decade to know whether they made the right decision, and nothing either I or any hypothetical critic could say will change that outcome, just as it hasn’t in the past.

What I can hopefully bring is a way to think about what a16z actually is from my unique experience. I think a16z is the best-marketed Firm in venture. It can, and does, tell a story about itself. Based on my experience, I can ...