Founders, Media, & Memes: a16z’s Strategy for the Future | a16z LP Summit 2025

Venture capitalists Ben Horowitz and Mark Andreessen discuss the evolution of their firm, Andreessen Horowitz, emphasizing the importance of innovation and adaptability in the rapidly changing venture capital landscape. They highlight their firm's unique structure, which allows for quick reorganization and scaling, enabling them to invest in emerging fields like AI and crypto. They also discuss the impact of social media on traditional media, likening it to a rapidly evolving landscape where controlling the narrative is crucial. The conversation underscores their commitment to fostering a culture of continuous innovation and supporting transformative technology companies.

• Building a world-changing venture requires the same effort as building an inconsequential one, so aiming for significant impact is worthwhile.
• The venture capital (VC) industry has evolved significantly since 2009, more so than in the previous 30 years.

"It's just as hard to build a small inconsequential thing as it is to build a giant world-changing thing. You work the same amount of hours and so you might as well go for doing something important."

• This quote emphasizes the importance of pursuing impactful ventures given the equal effort required for both significant and minor projects.

• The VC industry historically had top firms consistently leading due to their first pick on deals.
• The challenge for new firms was breaking into the top tier to achieve meaningful returns.
• The firm's evolution involved creating a platform that supports founders in becoming CEOs, emphasizing networking and mentorship.

"The same firms that were the top firms in 1978 were the top firm in 2009. And the reason for that was the top tier firm got first pick on every deal."

• This highlights the entrenched nature of top VC firms due to their ability to secure the best investment opportunities.

"Our idea was to create a platform that enabled a founder to evolve into becoming a CEO."

• The firm's strategy focused on supporting founders' growth into leadership roles, differentiating their approach from traditional VC models.

• Act One involved marketing the VC product to differentiate and gain top-tier status.
• Act Two was based on the idea that software would dominate industries, necessitating a scalable firm to handle increased opportunities.
• The firm benefited from shared economics without shared control, allowing for flexible scaling and adaptation.

"Phase two was based on a paper that Mark wrote called 'software is eating the world.'"

• The firm's expansion strategy was driven by the belief in software's transformative potential across industries.

"Since you know we kind of have a single decision point on that, it was very easy for us to reorganize and we were able to scale."

• The firm's structure allowed for efficient reorganization and scaling, providing a competitive advantage.

• The firm aims to influence the regulatory environment to support technological leadership.
• Establishing a robust media presence is crucial for distributing their voice and maintaining industry influence.
• The social media landscape has transformed information dissemination, likening it to a series of posts and controversies.

"We actually need our own channel, which you're coming on to build for us. It's really important to have a voice and a way to distribute that voice."

• Establishing a dedicated media channel is seen as essential for maintaining influence and communicating effectively.

"If it's on social media, it's a post, right? So, if it's on social media, it's a tweet, right? Or it's a TikTok video."

• This reflects the shift in media consumption and the need to adapt communication strategies to the social media format.

• Media events now have a rapid cycle, often lasting only two to three days.
• This cycle consists of a viral moment followed by a quick decline, similar to a drug's half-life.
• Social media plays a significant role in this cycle, with narratives quickly shifting focus.

"It's like every new thing that happens basically now has a two or three day arc."

• This quote highlights the fleeting nature of modern media cycles, where events quickly rise and fall in public attention.

"The mob goes around either finds a scapegoat or it doesn't and it kind of goes through a cycle."

• The cyclical nature of media events often involves public scapegoating, reflecting social media's influence on narrative formation.

• Long-form podcasts have emerged as a response to short attention spans and media burnout.
• Despite assumptions of reduced attention spans, long-form content has high completion rates.
• Audiences seek substance and depth, contrasting with the panic-driven media cycle.

"There's this other side of it which is people are hungry for a substance I think in large part because otherwise all they're getting is kind of continuous panic."

• This quote underscores the demand for meaningful content amidst the constant barrage of superficial media stories.

"It's like candy versus nutrition."

• The analogy contrasts superficial media content with the deeper, more fulfilling nature of long-form discussions.

• The internet accelerates cultural evolution much faster than traditional media.
• The concept of the OODA loop (Observe, Orient, Decide, Act) is applied to media, emphasizing speed in narrative control.
• Social media dictates the pace of media, often leaving traditional outlets trailing behind.

"The internet meme viral sort of blow up cycle time is two or three days like the internet media world just evolves much faster than every other."

• This quote highlights the rapid pace at which internet culture evolves, outpacing traditional media cycles.

"Social media has become the dog and traditional media has become the tail."

• This metaphor illustrates how social media now leads the narrative, with traditional media following behind.

• Controlling memes equates to controlling media narratives.
• Traditional media often reports on social media trends, reflecting a shift in narrative authority.
• The ability to shape memes provides leverage in influencing broader media discourse.

"If you can control the meme, it turns out you can also control the media."

• This quote emphasizes the strategic advantage of influencing social media trends to guide media narratives.

"In Marxist terms, we must seize the memes of production."

• The humorous reference to Marxism highlights the importance of controlling cultural production through memes.

• Venture firms must evolve to remain relevant as the world changes.
• Stagnation in firm strategy risks becoming obsolete, especially with emerging technologies like AI.
• The structure of venture firms often hinders innovation, despite their focus on investing in it.

"The world is evolving and you know, look, you could be great at consumer internet network effects businesses and there aren't just many of those to fund anymore."

• This quote addresses the necessity for venture firms to adapt to changing market conditions.

"Historically the firms haven't been although they invest in innovation they themselves haven't been very innovative."

• This critique points to the irony of venture firms' lack of internal innovation despite their role in funding it.

• Scaling venture firms can lead to challenges in maintaining high returns.
• Large firms may lose their edge by focusing on mega-cap companies rather than smaller, high-potential investments.
• The structure of venture firms can enable them to maintain the benefits of small firms while leveraging the power of large ones.

"We've basically recreated the original fund one seven times."

• This quote explains how the firm maintains its effectiveness by replicating its original successful model.

"The aggregate dollar upside opportunity on an early stage venture deal is as big as or bigger than the aggregate dollar upside opportunity on a very late stage deal."

• This insight highlights the potential for significant returns from early-stage investments, even as firms scale.

• Investing in early-stage companies can yield significant returns, sometimes even more than larger investments in established companies.
• The economic incentives for spending time with early-stage companies remain strong due to the potential for high returns.
• The focus on early-stage companies aligns with the firm's mission to have a higher impact.

"You can make a $5 million investment in a series A or seed of an early-stage company and you can own 20% of the company and then it goes to, you know, hundred billion or a trillion in market cap."

• The quote highlights the potential exponential growth and returns from investing in early-stage companies.

"We do spend some time with the later-stage companies but we still spend a lot of our time with the very early stage companies and I think that will always be what we do."

• This quote emphasizes the firm's commitment to focusing on early-stage investments.

• The firm is highly mission-oriented, aiming to help build better companies and more of them.
• There is a strong emphasis on making the world a better place by building companies and assembling the best people.
• The firm avoids straying from its core mission, even if other opportunities could be profitable.

"We are probably maybe the most maybe the only mission-oriented venture capital firm where like our goal from the beginning was to help people build better companies, you know, and more of them."

• This quote underscores the firm's dedication to its mission of building better companies.

"Cutting a company in half and that kind of thing is just so off culture off mission for us that it's probably, you know, even if we can make a lot of money, it's, you know, might not be something we want to do."

• The quote illustrates the firm's reluctance to engage in activities that do not align with its mission.

• The firm maintains an experimental culture to avoid complacency and continuously improve.
• There is an ethos of looking at the world and finding ways to do a better job.
• The firm benefits from a structure that allows rapid decision-making and experimentation.

"We have to think about how we fulfill our mission and to really get better and better at that, you know, and it's kind of just like an ethos and an ethic."

• This quote highlights the firm's commitment to continuous improvement and mission fulfillment.

"We can move fast because of the way we're structured."

• The quote emphasizes the advantage of the firm's organizational structure in facilitating rapid experimentation.

• Founders are often better at adapting to change than professional CEOs, who may struggle when circumstances change.
• The firm values the mindset of continuously doing new things and taking risks.
• There is a fundamental difference in mindset between founders and professional CEOs, particularly in their willingness to innovate.

"Professional CEOs are often very good at running a status quo business, but when things change, they have a very hard time reacting."

• This quote points out the limitations of professional CEOs in adapting to change.

"The only reason you have anything is because you did new things."

• The quote reflects the importance of innovation and risk-taking in achieving success.

• Culture is defined by actions, not beliefs, and dictates how the firm operates and interacts with others.
• New employees must agree to the culture document before joining, and the culture is enforced by the entire team.
• The firm prioritizes being supportive of entrepreneurs and maintaining a positive, constructive environment.

"Nobody joins the firm without signing their culture document like we will not let you sign your offer letter if you haven't signed your culture document that you agree to behave according to the culture."

• This quote highlights the importance of cultural alignment for new employees.

"We never criticize entrepreneurs in public. We're not dream killers. We're dream builders."

• The quote emphasizes the firm's supportive approach towards entrepreneurs and its commitment to fostering a positive culture.

• Succession planning is viewed as a tactic, and the firm has already undergone some succession.
• The focus is on building a multigenerational firm that extends beyond the current leadership.
• The firm aims to ensure continuity and sustained success over the long term.

"Succession planning is kind of like a tactic."

• This quote suggests that succession planning is a strategic component of the firm's long-term vision.

"How do we think about building a multigenerational firm beyond an injuries and horitz?"

• The quote indicates the firm's intention to create a lasting legacy and ensure its future success.

• The speaker discusses their role as an investor and the succession of leadership within their firm, highlighting Martin Casado as a successor who has taken over as the head of infrastructure.
• The firm emphasizes a strong culture and a rigorous training process for General Partners (GPs) to ensure longevity and adherence to the company's values and methods.
• A high standard is maintained for new entrants, with a focus on cultural fit and alignment with the firm's operational ethos.

"The founder of Nera is Martin Casado and Martin Casado has succeeded me as the kind of head of infra and he's by the way better head of infra than I was so that's an upgrade so we've done some succession already."

• Martin Casado has taken over as head of infrastructure, representing a successful succession plan and an upgrade in leadership.

"We train everybody in our way of doing things. And that way of doing things plus the culture is the thing that's going to last."

• Emphasizes the importance of training and culture in ensuring the firm's longevity and success.

• The firm approaches technological intersections, such as AI and crypto, with an entrepreneur-driven mindset, avoiding imposing their ideas on entrepreneurs.
• AI and crypto are seen as complementary technologies, with crypto providing a backbone for distributed AI systems and facilitating AI-native payments.
• The deep fake problem is identified as a significant issue, with blockchain-based solutions proposed to verify the authenticity of original work.

"AI I mean there's actually we have a bunch of companies that are thinking about distributed training building distributed AI systems."

• The firm is involved in companies working on distributed AI systems, highlighting the integration of AI and crypto.

"The problem with deep fakes is it's an asymmetric sort of threat profile which is there are many different AI systems that can make many different fake images and videos."

• Deep fakes pose a significant threat, and blockchain solutions are suggested to verify authenticity.

• A blockchain-based system is proposed to cryptographically register original work, providing a verifiable and hack-proof method to authenticate content.
• Three options for maintaining a database of truth are discussed: government control, corporate control, or a decentralized blockchain system, with the latter being preferred.

"I think the answer is to flip it and instead have like a blockchain-based system that where basically people and it could be everybody from the president to your kid working on an essay is able to cryptographically register original work."

• Suggests using blockchain to register and verify original work, providing a solution to the deep fake problem.

• AI agents are envisioned to operate independently, requiring crypto for transactions as they cannot possess traditional financial instruments like credit cards.
• An example is given of an AI agent, Truth Terminal, which raised funds through NFTs and used crypto to hire its creator for tasks.

"There's this kind of idea in the air that's starting to get built out which is these AI agents."

• AI agents are emerging as independent entities that will need to engage in economic activities using crypto.

"I literally sent it to Bitcoin and this this gave Andy you know it's a good character test of Andy because he could have just could have kept the Bitcoin but he actually set up a crypto wallet for the bot."

• An AI agent was funded using Bitcoin, demonstrating the potential for AI agents to operate financially through crypto.

• The firm is confident in its ability to avoid the innovator's dilemma due to its team of driven and brilliant individuals who are committed to innovation and the firm's mission.
• The speaker highlights the passion and determination of team members to pursue new ideas and prevent complacency.

"When you have people like Katherine Bole, Jennifer Lee, Martin Casado, Chris Dixon, etc., etc. like they'll burn down the building if we like if we get innovators to land them or if we sit on our like they like the level of fury they come with."

• The firm's team is described as passionate and committed to innovation, ensuring the company does not fall into complacency.