Organizational Structure and Decision-Making in Venture Capital Firms

Exploring the significance of organizational structure in venture capital firms and the advantages of a centralized control system for adapting to growth. Emphasizing the importance of making tough decisions to achieve an optimal structure.

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Ben Horowitz, co-founder of Andreessen Horowitz (a16z) and one of the most influential venture capitalists of the last decade, sits down with Erik for Turpentine VC. They shed light on how Ben thinks about firm-building and where the future is going. We're proudly sponsored by Vanta. Get $1000 off Vanta with https://www.vanta.com/upstream

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TIMESTAMPS:

(01:00) Episode Preview

(03:55) Ben on what allows the legendary VC firms to be great for multi-decades

(05:05) a16z’s unique product-first, investor-second approach

(06:20) YC as a16z’s closest spiritual analog

(09:40) Ben on why venture firms should stay private

(11:40) How a16z scaled their fund sizes to market opportunities

(12:40) Why a16z chose to go bigger than Benchmark or USV on fund size

(14:20) “Spreadsheet” VCs vs. people-first VCs

(16:00) a16z’s customer-focused strategy

(17:28) The firm’s unique approach to governance

(17:50) Sponsor: Mercury, Vanta