We're not talking about newbie CEOs here. The big-money "outsiders" are not coming in and wooing inexperienced entrepreneurs so that they can invest in their seed or Series A rounds. We're talking about CEOs of growth-stage companies. These are folks who, even if they're relatively young, have been running their companies for years and have the counsel of experienced advisers. The notion that they're haphazardly and naively choosing to negotiate exclusively with a single investor is laughable.
Andreessen Horowitz's latest $1.5 billion fund is big by venture capital standards. You can't manage a fund of that size by doing tons of small deals. My read on Marc's comments is that he's very concerned about players with bigger money using their leverage to push firms like his out of the type of deals that his firm needs.
In essence, he sees that bigger capital has the potential to disrupt his business in big bank take little bank fashion. For anyone who doesn't know what big bank take little bank is, I'm sure you can find the definition on Rap Genius. The irony.
We're not talking about newbie CEOs here. The big-money "outsiders" are not coming in and wooing inexperienced entrepreneurs so that they can invest in their seed or Series A rounds. We're talking about CEOs of growth-stage companies. These are folks who, even if they're relatively young, have been running their companies for years and have the counsel of experienced advisers. The notion that they're haphazardly and naively choosing to negotiate exclusively with a single investor is laughable.
Andreessen Horowitz's latest $1.5 billion fund is big by venture capital standards. You can't manage a fund of that size by doing tons of small deals. My read on Marc's comments is that he's very concerned about players with bigger money using their leverage to push firms like his out of the type of deals that his firm needs.
In essence, he sees that bigger capital has the potential to disrupt his business in big bank take little bank fashion. For anyone who doesn't know what big bank take little bank is, I'm sure you can find the definition on Rap Genius. The irony.