The a16z Show Alex Rampell on Venture at Scale and Founder Incentives
174 snips
Jan 12, 2026 
Alex Rampell, General Partner at Andreessen Horowitz and former founder, delves into the intricacies of venture investing. He discusses the importance of founder motivation, emphasizing that those driven by obsession or revenge often overcome challenges. Alex highlights his framework for backing talent and the concept of 'hostages'—customers who are integral to a company’s success. The conversation also tackles AI's transformative role in software and labor, as well as the risks and opportunities presented by large funds in today’s fast-paced market.
AI Snips
Chapters
Books
Transcript
Episode notes
Death Of The Middle In Venture
- Venture firms should either be very large generalists or small specialists; the middle dies out.
- LPs often prefer more gross dollars returned over higher multiples on tiny funds.
Startups As Out-Of-The-Money Options
- Venture now buys out-of-the-money call options on startups and hopes they expire in the money.
- As companies stay private longer, later-stage capital and option dynamics change valuation math.
Back Founders Who Materialize Resources
- Invest in founders who can materialize labor, capital, and customers.
- Back people who have studied the history of their space and show high agency.
