How Andreessen Horowitz Disrupted VC & What’s Coming Next

How Andreessen Horowitz Disrupted VC & What’s Coming Next

On this episode, taken from The Ben & Marc Show, a16z co-founders Marc Andreessen and Ben Horowitz dive deep into the unfiltered story behind the founding of Andreessen Horowitz—and how they set out to reinvent venture capital itself.

For the first time, Marc and Ben walk through the origins, strategy, and philosophy behind building a world-class venture capital firm designed for the future—not just the next fund. They reveal how they broke industry norms with a bold brand, a full-stack support model, and a long-term commitment to backing exceptional builders—anchored in the radical idea that founders deserved real support, not just checks.

Joining them to guide the conversation is Erik Torenberg—Andreessen Horowitz’s newest General Partner—who makes his Ben & Marc Show moderating debut. Erik is a technology entrepreneur, investor, and founder of the media company Turpentine.

Together, they explore:

- Why traditional VC needed reinvention

- How a16z scaled with a platform model, not a partner model

- The "barbell strategy" reshaping venture capital today

- Why venture remains a human craft, even in the age of AI

Timecodes:

00:00 - Intro

01:00 - Why Traditional Venture Capital Was Broken

03:05 - Marc on Discovering VC and Its Legends

05:12 - Surviving the Dot-Com Crash and Angel Investing Collapse

07:05 - Helping Founders Raise Venture / Fix VC Relationships

08:47 - The a16z Strategy: Building a Support Platform

12:07 - First Fund Wins: Skype, Instagram, Slack, Okta

12:50 - Building a 'World-Dominating Monster' 15:00 - The Sushi Boat VC Problem

18:07 - Treating LPs Differently

21:40 - Marc and Ben's Working Relationship

23:30 - Updating a16z’s Media Strategy for the Social Era

27:20 - History of the Decentralized Media Environment

30:36 - Decline of Corporate Brands and Going Direct

36:06 - Naming the Firm

40:13 - Building the a16z 'Cinematic Universe' of Talent

42:16 - Creating a Federated Model

51:02 - Deciding to Market the Firm

53:26 - Recruiting General Partners

56:33 - Evolution to Full-Stack Companies

01:03:53 - The Barbell Theory: The Death of Mid-Sized VCs

01:11:50 - Why Venture Capital Should Stay Overfunded

01:19:50 - When a16z Knew It Could Be Top Tier

01:25:58 - Venture Capital is an Art, Not a Science

Resources:

Marc on X: https://twitter.com/pmarca

Marc’s Substack: https://pmarca.substack.com/

Ben on X: https://twitter.com/bhorowitz

Erik on X: https://x.com/eriktorenberg

Erik's Substack: https://eriktorenberg.substack.com/

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The Story of Apple Pay with Jennifer Bailey

The Story of Apple Pay with Jennifer Bailey

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Building a Thriving AI Ecosystem with Lisa Su

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From Swipe to Scale: How Tinder Became #1

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The Frontier of Spatial Intelligence with Fei-Fei Li

Fei-Fei Li and Justin Johnson are pioneers in AI. While the world has only recently witnessed a surge in consumer AI, our guests have long been laying the groundwork for innovations that are transforming industries today.In this episode, a16z General Partner Martin Casado joins Fei-Fei and Justin to explore the journey from early AI winters to the rise of deep learning and the rapid expansion of multimodal AI. From foundational advancements like ImageNet to the cutting-edge realm of spatial intelligence, Fei-Fei and Justin share the breakthroughs that have shaped the AI landscape and reveal what's next for innovation at World Labs.If you're curious about how AI is evolving beyond language models and into a new realm of 3D, generative worlds, this episode is a must-listen.Resources: Learn more about World Labs: https://www.worldlabs.aiFind Fei-Fei on Twitter: https://x.com/drfeifeiFind Justin on Twitter: https://x.com/jcjohnssFind Martin on Twitter: https://x.com/martin_casadoStay Updated: Let us know what you think: https://ratethispodcast.com/a16zFind a16z on Twitter: https://twitter.com/a16zFind a16z on LinkedIn: https://www.linkedin.com/company/a16zSubscribe on your favorite podcast app: https://a16z.simplecast.com/Follow our host: https://twitter.com/stephsmithioPlease note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.

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Apple’s Big Reveals, OpenAI’s Multi-Step Models, and Firefly Does Video

This week in consumer tech: Apple’s big reveals, OpenAI’s multi-step reasoning, and Adobe Firefly’s video model.Olivia Moore and Justine Moore, Partners on the a16z Consumer team, break down the latest announcements and how these product launches will shape the tech ecosystem, transform AI-powered experiences, and impact startups competing for attention in a fast-moving market. Resources: Find Justine of Twitter: https://x.com/venturetwinsFind Olivia on Twitter: https://x.com/omooretweets Stay Updated: Let us know what you think: https://ratethispodcast.com/a16zFind a16z on Twitter: https://twitter.com/a16zFind a16z on LinkedIn: https://www.linkedin.com/company/a16zSubscribe on your favorite podcast app: https://a16z.simplecast.com/Follow our host: https://twitter.com/stephsmithioPlease note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.

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