a16z Podcast: Apple and Google Won the Mobile OS War, But a New War Has Already Begun

The International Consortium of Investigative Journalists is the organization responsible for the compilation and release of the first the Panama Papers, a series of 11.5 million documents that detailed the offshore dealings of governments and individuals the world over, soon followed by the Paradise Papers. In this podcast, a16z general partner John O'Farrell interviews ICIJ director Gerard Ryle discuss how journalists manage, sort through and coordinate so much information and data to pull out a series of tightly coordinated exposés around the globe for investigative journalism on this scale.  With so many moving parts, how does the ICIJ manage to keep high-stakes news stories under wraps until their slated day of release? What kinds of technologies are available to investigative journalists -- tools that might aid in information gathering and data security? And what does the modern media and tech landscape portend for the future of investigative journalism?

23 Maj 201823min

When it comes to B2B2C business models -- which combine both business to business (B2B) and business to consumer (B2C) -- who really "owns" the customer? That question might not matter as much in more symbiotic, mutually beneficial marketplaces and other platform contexts, but can be a problem in other contexts or if not done right. For example, if it gives entrepreneurs the illusion that they don't have to work to acquire customers, invest in direct sales, or provides a (false) sense of optionality for a second product/ business that "will work later someday". General partners Alex Rampell (who among other things co-founded TrialPay and Affirm) and Martin Casado (who was formerly CTO and cofounder of Nicira, and then SVP and GM of VMWare's networking and security business unit) draw on their backgrounds on both the consumer and enterprise side of B2B2C to share lessons learned in this episode of the 16z Podcast (in conversation with Sonal Chokshi). In enterprise settings, expanding the sale is one of the biggest drivers of growth, and there are broader ecosystem partners and considerations at play. But more broadly, we discuss how one could think about "channel" -- a.k.a. the route to market for distributing product to customers -- as well as if, when, and how to build more than one product in a startup. The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments and certain publicly traded cryptocurrencies/ digital assets for which the issuer has not provided permission for a16z to disclose publicly) is available at https://a16z.com/investments/. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.

18 Maj 201829min

“The rules of the game are different in tech,” argues — and has long argued, despite his views not being accepted at first — W. Brian Arthur, technologist-turned-economist who first truly described the phenomenon of “positive feedbacks” in the economy or “increasing returns” (vs. diminishing returns) in the new world of business… a.k.a. network effects. A longtime observer of Silicon Valley and the tech industry, he’s seen how a few early entrepreneurs first got it, fewer investors embrace it, entire companies be built around it, and still yet others miss it… even today. If an inferior product/technology/way of doing things can sometimes “lock in” the market, does that make network effects more about luck, or strategy? It’s not really locked in though, since over and over again the next big thing comes along. So what does that mean for companies and industries that want to make the new technology shift? And where does competitive advantage even come from when everyone has access to the same building blocks (open source, APIs, etc.) of innovation? Because Arthur — former Stanford professor, visiting researcher at PARC, and external professor at Santa Fe Institute who is also known as one of the fathers of complexity theory in economics — has written about the nature of technology and how it evolves, observing that new technology doesn’t come out of nowhere, but instead, is the result of “combinatorial” innovation. Does this then mean there’s no such thing as a dramatic breakthrough?! In this hour-long episode of the a16z Podcast, we (Sonal Chokshi with Marc Andreessen) explore many of these questions with Arthur. His answers take us from “the halls of production” to the “casino of technology”; from the “prehistory” to the history of tech; from the invisible underground autonomy economy to the “internet of conversations”; from externally available information to externalized intelligence; and finally, from Silicon Valley to Singapore to China to India and back to Silicon Valley again. Who’s going to win; what are the chances of winning? We don’t know, because it’s a very different game… Do you still want to play?

17 Maj 20181h 5min

In this hallway-style conversation (originally recorded as a video), a16z general partner Alex Rampell and Terry Angelos, SVP of Commerce Solutions at Visa, discuss the trials and tribulations of their time as co-founders of TrialPay, an e-commerce payment and promotions platform. The story begins with their serendipitous initial meeting twelve years ago; tracks the obstacles overcome, rise, and eventual acquisition of TrialPay (by Visa in 2015); and ends with reflections on the future landscape and potential of payments. How can a third party increase profits for all parties involved? And how can a payments startup make a splash in an industry dominated by a few well-known incumbents? The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments and certain publicly traded cryptocurrencies/ digital assets for which the issuer has not provided permission for a16z to disclose publicly) is available at https://a16z.com/investments/. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.

10 Maj 201846min

What challenges do first-time founders or tech founders encounter when building companies in the bio space, and how do they differ from traditional tech companies? In this hallway-style conversation episode of the a16z Podcast (originally recorded as a video), a16z bio team general partners Vijay Pande and Jorge Conde, with Jeff Low discuss the mindset shifts involved in building bio (particularly therapeutics) companies. They cover everything from different paths to market and different partnerships (including pharma) to different timelines and milestones for validating the product and business itself. But how do we get to a common language that bridges the worlds of tech and bio?

10 Maj 201827min

with Bryan Caplan (@bryan_caplan), Marc Andreessen (@pmarca), and Sonal Chokshi (@smc90) Signaling and credential inflation -- not learning -- can explain why education pays in the labor market, and why we shouldn't invest (any more) in it, argues Bryan Caplan, economics professor at George Mason University and author of the book The Case Against Education: Why the Education System is a Waste of Time and Money. But is it really... a waste of time and money? Doesn't education have other benefits at least, like "learning to learn"; or sorting personality traits for employers at least; or helping developing economies even? And isn't it interesting that all the people (not just Caplan, but many in Silicon Valley and elsewhere) who argue against education are in fact, ahem, educationally credentialed themselves? This episode of the a16z Podcast, hosted by Marc Andreessen with Sonal Chokshi, takes on Caplan's "cynical idealist" take to probe both the cynical (problems, realities) and idealist (implications, solutions) aspects of education, no matter one's politics. And finally, where does tech (and a bit of sci-fi) come in??

9 Maj 201844min

with Atul Butte (@atulbutte), Daphne Koller (@daphnekoller), and Vijay Pande (@vijaypande) Whether you’re an academic seeking to move out of research and into industry, or simply interested in working at a bio startup, this episode of the a16z Podcast is for you. It covers everything from how to build a brand in the space when you don’t have one to how the bio and how the healthcare startup ecosystem is different from traditional tech (or traditional pharma), to how to choose the right co-founder -- or even identify what problems to solve and build a company around. The discussion (which is based on a recent event at Andreessen Horowitz) features Atul Butte, Distinguished Professor and Director of the Institute for Computational Health Sciences at UCSF; and Daphne Koller, founder and CEO of insitro (former professor at Stanford, co-founder of Coursera); in conversation with a16z bio team general partner Vijay Pande. Together, they provide practical how-to's -- for those coming from machine and deep learning backgrounds, but also for anyone, really -- for how to break into the bio space. The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments and certain publicly traded cryptocurrencies/ digital assets for which the issuer has not provided permission for a16z to disclose publicly) is available at https://a16z.com/investments/. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.

2 Maj 201841min

with Ray Dalio (@raydalio), Alex Rampell (@arampell), and Sonal Chokshi (@smc90) Can one really apply the lessons of history and of the past to the present and the future, as a way to get what they want out of life? By deeply understanding cause-effect relationships -- clearly expressed, shared with others, overlaid with data, back-tested, modified -- you can build a set of principles/algorithms/recipes for dealing with the realities of your life, observes Ray Dalio in this episode of the a16z Podcast (in conversation with a16z general partner Alex Rampell and Sonal Chokshi). Dalio's book Principles: Life and Work originated as an internal company document that was posted online years ago and has been shared widely since; he is the founder, chairman, and co-chief investment officer of Bridgewater Associates -- one of the top five private companies in the U.S., which manages over $150 billion and has made more money for clients than any other hedge fund. "Is this is a duck, how do I deal with ducks; or this is a species I haven't seen before, and how do I deal with that?" In other words, when you see a particular thing coming over and over again, you can know what you're seeing and how to act on it. But what about timing, which is a huge factor when it comes to making various bets and decisions in both work and life? And what if a phenomenon is entirely new and hasn't been seen before (is there such a thing), and also, how do we avoid an overly pattern-matching/ pattern-recognition trap? Having a framework can still help -- even if the phenomena don't have a clear set of rules like chess -- because we can understand why things might be different. Knowing that is important, argues Dalio. The conversation covers everything from the differences between private and public investing, and between startups and big companies -- to how people, teams, organizations, and even nation-states can evolve through principles like "believability-weighted idea meritocracies" and more. But... can adults really change? What are the differences between the two you's, and between closed-minded and open-minded people, and how do they play out across the roles of a "teacher", "student", or "peer" in organizations of varying scale? It's not as obvious as you might think, and knowing how you know -- and what we don't know -- can help.

21 Apr 201849min