a16z: The Power Brokers There is this story about Marc Andreessen that I think perfectly captures a16z. in 2015, when New Yorker writer Tad Friend sat down to breakfast with Marc Andreessen while writing Tomorrow’s Advance Man. Friend had just heard from a rival VC who wanted to get a word in: that a16z’s funds were so large, and ownership percentages so small1, that to get 5-10x aggregate returns across its first four funds, they’d need their aggregate portfolio to be worth $240-480 billion. “When I started to check the math with Andreessen,” Friend writes, “He made a jerking-off motion and said ‘Blah-blah-blah. We have all the models—we’re elephant hunting, going after big game!’” The aggregate portfolio did not end up being worth $240-480 billion. a16z Funds 1-4 had a total enterprise value of $853 billion at distribution or latest post-money valuation. Since distribution, Facebook alone has added $1.5 trillion in market cap. Some form of this pattern keeps playing out: a16z makes a crazy bet on the future. Those in the know say it’s stupid. Wait some years. Turns out it’s not stupid! Which is why, as a16z announces $15 billion in fresh funds, it is probably a mistake to dismiss them as greedy or stupid. It's probably worth understanding just exactly what IT'S TRYING TO BUILD. That's what I do in today's not boring deep dive: a16z: The Power Brokers