5 ms·

Andreessen Horowitz launches $2.2M fund to invest in underserved founders

10 points by tr33house 6y ago

1cvmask 6y ago
The underserved fund for the underserved founder.
0zymandias 6y ago
"A16z has $12 billion in assets under management across its funds, so a $2.2 million fund is not groundbreaking from a monetary perspective" The math comes out to 0.018%.
redis_mlc 6y ago
AH is clearly doing this as a counter to YC. On the one hand, it doesn't sound like much, but on the other, 2000-era angel investments were really small - $25k - $50k were typical. (Woz's seed funding to Google was $100k.) Also, VCs are really into larger, later-stage investments this decade, usually more than $2 million per startup. Having said that, $2.2 million is like 8-9 senior engineers in SV for a year, so not much.
- enonevets 6y ago
  Not to detract from the point but I never heard of Woz funding Google. As far as I know, first $100k (and only seed round) was funded by Andy Bechtolsheim, co-founder of Sun Microsystems.
dzonga 6y ago
as a black person in tech. this is the wrong move. what's 2m to a fund like AH. if this program is to work, they need to invest in the community i.e scholarship funds or dinners etc - have people of color like me interact with VC's on the regular. my disdain for VC's as they're more like vultures these days. most people of color suffer from the lack of opportunity - n the lack of opportunity starts at a grassroots level. I have been privileged enough to be able to afford college get a CS degree, work at tech companies. not be arrested etc. but most people with the color of my skin are not. also scholarship funds need to like a machine gun - not based on some artificial merit metric.
- jjeaff 6y ago
  I think it's offensive. I thought surely the m was supposed to be a b. But nope, the $12B gorilla in VC launched a tiny $2.2m fund. Not even enough to fund a single round in a single company at the levels they usually fund. I hate to down a good idea. But at least make an effort. Is this all that one of the biggest VC firms on the planet can muster?
joejerryronnie 6y ago
They should invest in establishing local VC firms in underserved communities.

10 points by tr33house 6y ago

The underserved fund for the underserved founder.

"A16z has $12 billion in assets under management across its funds, so a $2.2 million fund is not groundbreaking from a monetary perspective" The math comes out to 0.018%.

redis_mlc 6y ago

AH is clearly doing this as a counter to YC. On the one hand, it doesn't sound like much, but on the other, 2000-era angel investments were really small - $25k - $50k were typical. (Woz's seed funding to Google was $100k.) Also, VCs are really into larger, later-stage investments this decade, usually more than $2 million per startup. Having said that, $2.2 million is like 8-9 senior engineers in SV for a year, so not much.

enonevets 6y ago
Not to detract from the point but I never heard of Woz funding Google. As far as I know, first $100k (and only seed round) was funded by Andy Bechtolsheim, co-founder of Sun Microsystems.

dzonga 6y ago

as a black person in tech. this is the wrong move. what's 2m to a fund like AH. if this program is to work, they need to invest in the community i.e scholarship funds or dinners etc - have people of color like me interact with VC's on the regular. my disdain for VC's as they're more like vultures these days. most people of color suffer from the lack of opportunity - n the lack of opportunity starts at a grassroots level. I have been privileged enough to be able to afford college get a CS degree, work at tech companies. not be arrested etc. but most people with the color of my skin are not. also scholarship funds need to like a machine gun - not based on some artificial merit metric.

jjeaff 6y ago
I think it's offensive. I thought surely the m was supposed to be a b. But nope, the $12B gorilla in VC launched a tiny $2.2m fund. Not even enough to fund a single round in a single company at the levels they usually fund. I hate to down a good idea. But at least make an effort. Is this all that one of the biggest VC firms on the planet can muster?

joejerryronnie 6y ago

They should invest in establishing local VC firms in underserved communities.