It was an interesting Editorial Decision to not use the preferred A16Z, but instead go with the (exactly same length) A.H. everywhere.
A.H. requires no explanation for those not in the know, A16Z does.
How Andreessen Horowitz Is Disrupting Silicon Valley
21–30 of 58 posts
Re: How Andreessen Horowitz Is Disrupting Silicon Valley
#22Earlier quoted context omitted.
Right, but the real question is: what are their returns? (And: how do they compare to VC as a whole?, how do they compare to long-term US treasury bonds?, how do they compare to the S&P 500?
Don't have the most recent numbers but http://fortune.com/2012/07/24/nice-ira-andreessen-horowitz-r... It would seem they've done quite well.
Besides the fact that Skype was an exceptional insider deal these numbers can be misleading ("twice over" for a 10 year fund is about 7% a year and IRRs are distorted when money is returned early because you are not getting that return for the remaining period of investment).
Re: How Andreessen Horowitz Is Disrupting Silicon Valley
#23What would be the (software) VC equivalent of contrarian investing? Let's see, we could invest in companies that - are tackling problems for which solutions already exist - are staffed by experienced people, not youth - use mature technology - have nothing to do with the web or even the internet - are run outside of the valley (bonus points for flyover country) Surely there must be other things that warm the heart of…
This resonates so strongly with me, and I'm so glad you posted it. It reinforces the framework I've been using myself for the past few years and perfectly articulates what I've been trying to explain to myself even.
I can add even one more I personally follow. The standard way most tech companies put capital to work is hiring or aqui-hiring tech talent.
My own experience tells me that's too risky since I've worked with far, far more overvalued people than undervalued. Therefore, I reinvest the profits of my tech business into companies that have steady and real return on equity (e.g. Wells Fargo). Imagine that: A tech company that invests all retained earnings in a boring bank! :)
Re: How Andreessen Horowitz Is Disrupting Silicon Valley
#24=~ s/Disrupting/Leading/
Re: How Andreessen Horowitz Is Disrupting Silicon Valley
#25It was an interesting Editorial Decision to not use the preferred A16Z, but instead go with the (exactly same length) A.H. everywhere.
A.H. requires no explanation for those not in the know, A16Z does.
Right - but linking their company's abbreviation to the software development concept of I18N, would have been a great introductory paragraph, that picked up on the essential geekiness of Ben and Marc. It's
Re: How Andreessen Horowitz Is Disrupting Silicon Valley
#26Just a reminder, Andreessen is the same person that says Snowden is a traitor.
Re: How Andreessen Horowitz Is Disrupting Silicon Valley
#27Earlier quoted context omitted.
Found it: http://www.kauffman.org/~/media/kauffman_org/research%20repo... The title is "We Have Met The Enemy...And He Is Us": Lessons from 20 years of the Kauffman Foundation’s Investments in Venture Capital Funds.
That's a great paper but most people are interested in the performance of the top 10 firms, not the average of the top 100. If I invest only in Sequoia/KPCB/AZ/Accel how well am I doing?
Like this ?
"Only four of thirty venture capital funds with committed capital of more than $400 million delivered returns better than those available from a publicly traded small cap common stock index"
Re: How Andreessen Horowitz Is Disrupting Silicon Valley
#28Earlier quoted context omitted.
Found it: http://www.kauffman.org/~/media/kauffman_org/research%20repo... The title is "We Have Met The Enemy...And He Is Us": Lessons from 20 years of the Kauffman Foundation’s Investments in Venture Capital Funds.
That's a great paper but most people are interested in the performance of the top 10 firms, not the average of the top 100. If I invest only in Sequoia/KPCB/AZ/Accel how well am I doing?
You should be able to get return information from State Pension Funds that invest in private equity/venture capital.
For example, the Washington State Investment Board Private Equity IRR report can be access at http://www.sib.wa.gov/financial/invrep_ir.asp. From December 2013 IRR Report [PDF] at http://www.sib.wa.gov/financial/pdfs/quarterly/ir123113.pdf,
U.S. Venture Partners VIII, L.P. 6/4/2001 3.23%
New Enterprise Associates 10, L.P. 10/17/2000 3.16%
Menlo Ventures X, L.P. 1/6/2006 0.66%Re: How Andreessen Horowitz Is Disrupting Silicon Valley
#29I couldn't get more than a quarter of the way through. Is it all gushingly sycophantic?
Re: How Andreessen Horowitz Is Disrupting Silicon Valley
#30The word "disrupt" has become entirely meaningless, hasn't it?