mj

I was reading funding news last week, and I came to a big realization: Andreessen Horowitz is not a venture capital fund.

A lot of people are thinking it. So there, I said it.

And it’s not just Andreessen. It’s all the big funds.

They started out as VC. They operate funds that invest in private early-stage companies. But they haven’t been VC funds for... See more

AI may not take away work. But it might take away your excuse for being generic.

As AI takes over increasing chunks of knowledge work, what cannot be taken over becomes more valuable. These attributes become the defining feature of premium work.

AI doesn’t make human work irrelevant. It just reshuffles where the value sits .

What the sommeliers figured out, before the rest of us eventually do, is that value is not in giving people more information. It’s in giving them confidence in a moment of uncertainty, making them feel like connoisseurs even if this is the first sip they’ve ever had.

This leads to a go-for-broke approach. All the capital quickly funnels to companies with an infinite narrative, business fundamentals be damned.So if you are a scaled player in a market where the power law is the consensus, there is really only one rational strategy. And that’s to be a price-insensitive index of any company that has the potential... See more

Megafunds on the other hand dominate "consensus" bets with unbeatable terms. For proven founders, proven spaces, or proven traction, megafunds will offer more money at much higher prices than any seed fund. This is why in 2024, nearly 1/3 of seed dollars when to rounds $10M+

Second, and perhaps more important, choose your partners with extreme care. If all goes well, then you’ll be working with that person the rest of your career. And if it doesn’t go well, then it really doesn’t.

But despite all of those headwinds, now is the time because the spoils of the next decade will be immense. Yet if you’re currently a non-partner, or even a small-p partner at your current firm, you won’t be participating meaningfully in those spoils.

Some investors are keen on the US switch. Andreessen Horowitz, the US venture capital firm that is Wise’s sixth-biggest shareholder, told the FT that its position on the proposals was “an enthusiastic yes”.