The simple answer is that a16z is showing the world how this is done, and so many investors have come knocking on their door that it'd be silly to say no. Firs

The simple answer is that a16z is showing the world how this is done, and so many investors have come knocking on their door that it'd be silly to say no. First off, they're clearly doing this right. They are more than just the new face of venture capital, they're innovators in technology capital (much like YC). They have a clear mission (as you've just read) flowing from some of the most insightful, experienced and well-connected technology business leaders in the world. Their portfolio is great and they have a compelling case that they are adding value to companies far beyond the money. Second, this is a nearly-perfect moment to raise for their fund. I know if I was in charge of some serious money in this economic environment I would be haranguing them endlessly to invest. I can imagine they just had to pick a number, and why not take as much as they were offered on the best terms? If things go well, they may need to come in to deals with more money. If the market goes sour, they'll be glad they don't have to raise for a long while. And by the way, even if you're not interested in VC financing or even being an entrepreneur, please at least check out some of Ben's classic blog entries from the sidebar of this article. I recommend his essential take on corporate politics: http://bhorowitz.com/2010/08/23/how-to-minimize-politics-in-your-company/ http://bhorowitz.com/2010/08/23/how-to-minimize-politics-in-...