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Does believing in founding CEOs and building a great network of contacts explain in any way why they felt they needed to raise so much money so fast?
by bproper 15y ago
Does believing in founding CEOs and building a great network of contacts explain in any way why they felt they needed to raise so much money so fast?
- ironchef 15y agoNo...but he has discussed similar issues back here: http://bhorowitz.com/2010/11/03/why-andreessen-horowitz-just-raised-650000000/ http://bhorowitz.com/2010/11/03/why-andreessen-horowitz-just... Basically it's that they don't want to be limited in what they can invest in (be it seed money, venture money, or growth moeny). They have lots of interesting opportunities coming at them and i'm sure they'd not be happy if they were excluded from something they believe in simply for capitalization reasons. I have a strong suspicion they could have way more capital than 2.7 Bil if they wanted to...they're trying to walk the fine line of having enough capital to work with w/o feeling the pressure that they need to invest in things they don't like.
- ghshephard 15y agoTo some degree it answers why they are raising money in the first place. Agreed, though, his essay doesn't answer either (A) Why $2.7B in particular, and (B) Why in just three years - other than the fact that purpose people believe in their approach so much that it was easy to do so.
- friendstock 15y agoAgreed. The essay answers the question, why is A2Z awesome... but it doesn't provide any reason as to why they want to raise so much (e.g. they see the need to be able to invest hundreds of millions into certain companies), and why now (e.g. there's an epic shift in mobile/internet so it's necessary to invest now).