Andreessen Horowitz to give half their earnings to charity • Hacker News Board

Re: Andreessen Horowitz to give half their earnings to charity

#51

Post by waterlesscloud » Wed, Apr 25, 2012, 11:40 PM UTC

paul wrote: post #41

It's sad to see so much misplaced cynicism here. If the partners had decided to keep 100% of their carry (as is typical) and used it to buy a bigger house or jet or something, nobody would comment or care. Instead, they've pledged to give half to some of their favorite charities, and some of you are acting as if it's a crime against humanity. Put away your Ayn Rand books (or whatever it is that drives you to such opi…

I think some of this is a result of the startup rhetoric about all the companies trying "change the world".

If that were actually true, that all the effort and money going into startups was actually focused on changing the world, then wouldn't it naturally be better to reinvest the money into that system?

Of course the reality, as we all know, is that it's only sometimes about changing the world, and sometimes it's a game to see if you can do it and win.

And since that's the case, it probably is better to channel some of the money to people actually trying to change the world, assuming those organizations are as carefully selected as the startups that generated the money are.

Re: Andreessen Horowitz to give half their earnings to charity

#52

Post by larrys » Wed, Apr 25, 2012, 11:40 PM UTC

paul wrote: post #41

It's sad to see so much misplaced cynicism here. If the partners had decided to keep 100% of their carry (as is typical) and used it to buy a bigger house or jet or something, nobody would comment or care. Instead, they've pledged to give half to some of their favorite charities, and some of you are acting as if it's a crime against humanity. Put away your Ayn Rand books (or whatever it is that drives you to such opi…

"sad to see so much misplaced cynicism here"

Seems that over the last several years or so there has been an uptick in wealthy people using peer pressure to get other wealthy people to give away their money according to some rule of thumb that one groups thinks is right or fair. Wealthy people always gave away money and pressured others at charity events of course. But I don't remember it ever being so public.

I have an objection to this type of peer pressure. Just like I have an objection to Warren Buffet and his "Buffet Rule".

It seems that one of the most downvoted comments below is one where "PR" was mentioned. Was this done for PR reasons. No not entirely. But it also wasn't done anonymously either.

Re: Andreessen Horowitz to give half their earnings to charity

#53

Post by tobtoh » Wed, Apr 25, 2012, 11:41 PM UTC

jcampbell1 wrote: post #10

I am frankly a bit saddened by this. These guys are some of the best in the world at deploying capital. Humanity would be better served if they continued to invest their own money. Now these guys half-work for some charity, and when the charity doesn't deliver great results, they will feel like they are half-working for little results. It is a mistake for the best capital allocators to pledge future earnings. They sh…

As someone who has done some work in the Alumni area, there is research (sorry, I don't have a reference at the moment) which stated something like: If an alumni doesn't make a donation (even $1) in the first 3 years of leaving their organisation, the chance they will ever make a donation is a small percentage. If they donate something (no matter how small) in the first three years, the chance they will donate again is 80%. (I can't remember the exact figures).

ie Donators donate - no matter what their circumstance. Everyone else just promises to 'in the future' and never do.

So kudos to them for committing to donate and not just waiting to do it sometime in the future.

Re: Andreessen Horowitz to give half their earnings to charity

#54

Post by paul » Wed, Apr 25, 2012, 11:41 PM UTC

xenophanes wrote: post #48

paul wrote: post #41

It's sad to see so much misplaced cynicism here. If the partners had decided to keep 100% of their carry (as is typical) and used it to buy a bigger house or jet or something, nobody would comment or care. Instead, they've pledged to give half to some of their favorite charities, and some of you are acting as if it's a crime against humanity. Put away your Ayn Rand books (or whatever it is that drives you to such opi…

By giving half their profit to charity, one could take them as implying that profit is bad, that they don't deserve everything they earned, and that they are appeasing the irrational anti-capitalists (if not siding with them). I don't know anything about this particular case, but in general many businessmen are complicit in bad philosophy, and sometimes even pay to promote it. That's shameful and harmful. Business pe…

My job is helping people start business, and I do it in large part because I think it's good for the world, so you don't need to preach to me on the benefits of business.

The mistake being made by many here is concluding that since business can be good for the world, therefore everything that isn't a for-profit business must be a waste. Not all good things are profitable.

Re: Andreessen Horowitz to give half their earnings to charity

#55

Post by jimmyvanhalen » Wed, Apr 25, 2012, 11:42 PM UTC

lotharbot wrote: post #47

jimmyvanhalen wrote: post #34

Earlier quoted context omitted.

clearly a PR ploy. it's a waste of capital imo. Reduce your management fee and carried interest income and return them to your LP. or re-invest that capital in start-ups to create even more jobs. edit: it's their money and what they do with it is their business. but they're in the venture capital business, not in the charity business. their job is to deploy capital and maximize returns to their investors (they create…

> "they're in the venture capital business, not in the charity business" They're in the business of being human. As is true for any of us, that means something complex, multidimensional, and personal. It's not some sort of affront to venture capitalism to use the profits it generates for something other than more venture capitalism. It's not a "waste of capital" to use your own capital for whatever you find important…

the money they make for their LPs goes to pension funds, universities, businesses, etc. which in turn creates more jobs, start-ups, investments, donations to charities, etc.

If you're going to donate to charity, do it personally and without all the media hype.

Re: Andreessen Horowitz to give half their earnings to charity

#56

Post by larrys » Wed, Apr 25, 2012, 11:45 PM UTC

waterlesscloud wrote: post #51

paul wrote: post #41

It's sad to see so much misplaced cynicism here. If the partners had decided to keep 100% of their carry (as is typical) and used it to buy a bigger house or jet or something, nobody would comment or care. Instead, they've pledged to give half to some of their favorite charities, and some of you are acting as if it's a crime against humanity. Put away your Ayn Rand books (or whatever it is that drives you to such opi…

I think some of this is a result of the startup rhetoric about all the companies trying "change the world". If that were actually true, that all the effort and money going into startups was actually focused on changing the world, then wouldn't it naturally be better to reinvest the money into that system? Of course the reality, as we all know, is that it's only sometimes about changing the world, and sometimes it's a…

You have to understand though that "charity" is a word just like "education", "religion", "race", "child molester" that is a third rail. People will rarely speak out against the first 4 and nobody, with the exception of a defense attorney or possibly family will ever take the side of a person accused of the latter.

Re: Andreessen Horowitz to give half their earnings to charity

#57

Post by paul » Wed, Apr 25, 2012, 11:45 PM UTC

larrys wrote: post #52

paul wrote: post #41

It's sad to see so much misplaced cynicism here. If the partners had decided to keep 100% of their carry (as is typical) and used it to buy a bigger house or jet or something, nobody would comment or care. Instead, they've pledged to give half to some of their favorite charities, and some of you are acting as if it's a crime against humanity. Put away your Ayn Rand books (or whatever it is that drives you to such opi…

"sad to see so much misplaced cynicism here" Seems that over the last several years or so there has been an uptick in wealthy people using peer pressure to get other wealthy people to give away their money according to some rule of thumb that one groups thinks is right or fair. Wealthy people always gave away money and pressured others at charity events of course. But I don't remember it ever being so public. I have…

Would you rather that they compete over who has the largest yacht or the most jets? Think of it as a positive form of conspicuous consumption. Just as a business can be good for both the owner and the customer, charity can be beneficial for both the givers and the recipients.

Re: Andreessen Horowitz to give half their earnings to charity

#58

Post by yesbabyyes » Wed, Apr 25, 2012, 11:45 PM UTC

jimmyvanhalen wrote: post #50

paul wrote: post #41

It's sad to see so much misplaced cynicism here. If the partners had decided to keep 100% of their carry (as is typical) and used it to buy a bigger house or jet or something, nobody would comment or care. Instead, they've pledged to give half to some of their favorite charities, and some of you are acting as if it's a crime against humanity. Put away your Ayn Rand books (or whatever it is that drives you to such opi…

it's not foolish. it's just not the most efficient way to spend capital. look at it from the point of view of the LPs. A VCs job is to deploy capital and maximize return to it's investors. they should reduce their management fee and carried interest income, and give them back to the LP, or re-invest them and fund more start-ups/create more jobs. My opinion on this would've been different if they said "I am personally…

Now usually I don't do this, but: Who are you, jimmyvanhalen, to tell Paul Buchheit about "the most efficient way to spend capital", and how Marc Andreessen and Ben Horowitz should do their jobs? Since you apparently know so much about it, surely you top Paul's worth easily?

Re: Andreessen Horowitz to give half their earnings to charity

#59

Post by paul » Wed, Apr 25, 2012, 11:48 PM UTC

waterlesscloud wrote: post #51

paul wrote: post #41

It's sad to see so much misplaced cynicism here. If the partners had decided to keep 100% of their carry (as is typical) and used it to buy a bigger house or jet or something, nobody would comment or care. Instead, they've pledged to give half to some of their favorite charities, and some of you are acting as if it's a crime against humanity. Put away your Ayn Rand books (or whatever it is that drives you to such opi…

I think some of this is a result of the startup rhetoric about all the companies trying "change the world". If that were actually true, that all the effort and money going into startups was actually focused on changing the world, then wouldn't it naturally be better to reinvest the money into that system? Of course the reality, as we all know, is that it's only sometimes about changing the world, and sometimes it's a…

Some changes are best made via a for-profit venture, and some aren't. I'm interested in both kinds of change, and that means that I'm involved in both worlds.

Re: Andreessen Horowitz to give half their earnings to charity

#60

Post by daenz » Wed, Apr 25, 2012, 11:50 PM UTC

yesbabyyes wrote: post #58

jimmyvanhalen wrote: post #50

Earlier quoted context omitted.

it's not foolish. it's just not the most efficient way to spend capital. look at it from the point of view of the LPs. A VCs job is to deploy capital and maximize return to it's investors. they should reduce their management fee and carried interest income, and give them back to the LP, or re-invest them and fund more start-ups/create more jobs. My opinion on this would've been different if they said "I am personally…

Now usually I don't do this, but: Who are you, jimmyvanhalen, to tell Paul Buchheit about "the most efficient way to spend capital", and how Marc Andreessen and Ben Horowitz should do their jobs? Since you apparently know so much about it, surely you top Paul's worth easily?

appeal to accomplishment, appeal to poverty, appeal to wealth

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