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a16z crypto1


I guess this is the week I am going to compliment our competitors in the VC business. That meme started yesterday in my post on Benchmark and will continue today. Yesterday afternoon my friend Chris Dixon announced a new VC fund called “a16z crypto” which he will lead with a team of great investors, many of which are also friends, including his new partner Katie Haun who I serve on the Coinbase board with. She is a very special person as Ben Horowitz described in this post. Go read the blog post which Chris wrote to announce the fund. It is among the best articulations of the crypto opportunity that I have read. Here are some of the concepts he explains which had me nodding my head: Trust is a new software primitive from which other components can be constructed. and The new primitive of trust also means that 3rd-party developers, entrepreneurs, and creators can build on top of crypto-powered platforms without worrying about whether the rules of the game will change later on. In an era in which the internet is increasingly controlled by a handful of large tech incumbents, it’s more important than ever to create the right economic conditions for developers, creators, and entrepreneurs. Trust also enables new kinds of governance where communities collectively make important decisions about how networks evolve, what behaviors are permitted, and how economic benefits are distributed. and We believe that just as the last three megatrends — mobile, social, and cloud — intersected and reinforced each other, so will the next three megatrends — next-gen computing devices, AI, and crypto. and crypto is purely a software movement and doesn’t depend on a hardware buildout, in contrast to, say, the internet, which required laying cables and building cell towers. Second, the space is developing extremely rapidly, partly because the code, data, and knowledge is largely open source, and partly because of the increasing inflow of talent. and Cryptogoods can unlock new experiences and business models for games and other forms of media. I really like the term “cryptogoods” and plan to start using it as my default word for NFTs and related efforts. Many of our crypto investments have been with Chris and his partners and I hope that will continue. They are fantastic to work with. https://avc.com/2018/06/a16z-crypto/

a16z crypto1


I guess this is the week I am going to compliment our competitors in the VC business. That meme started yesterday in my post on Benchmark and will continue today. Yesterday afternoon my friend Chris Dixon announced a new VC fund called “a16z crypto” which he will lead with a team of great investors, many of which are also friends, including his new partner Katie Haun who I serve on the Coinbase board with. She is a very special person as Ben Horowitz described in this post. Go read the blog post which Chris wrote to announce the fund. It is among the best articulations of the crypto opportunity that I have read. Here are some of the concepts he explains which had me nodding my head: Trust is a new software primitive from which other components can be constructed. and The new primitive of trust also means that 3rd-party developers, entrepreneurs, and creators can build on top of crypto-powered platforms without worrying about whether the rules of the game will change later on. In an era in which the internet is increasingly controlled by a handful of large tech incumbents, it’s more important than ever to create the right economic conditions for developers, creators, and entrepreneurs. Trust also enables new kinds of governance where communities collectively make important decisions about how networks evolve, what behaviors are permitted, and how economic benefits are distributed. and We believe that just as the last three megatrends — mobile, social, and cloud — intersected and reinforced each other, so will the next three megatrends — next-gen computing devices, AI, and crypto. and crypto is purely a software movement and doesn’t depend on a hardware buildout, in contrast to, say, the internet, which required laying cables and building cell towers. Second, the space is developing extremely rapidly, partly because the code, data, and knowledge is largely open source, and partly because of the increasing inflow of talent. and Cryptogoods can unlock new experiences and business models for games and other forms of media. I really like the term “cryptogoods” and plan to start using it as my default word for NFTs and related efforts. Many of our crypto investments have been with Chris and his partners and I hope that will continue. They are fantastic to work with. https://avc.com/2018/06/a16z-crypto/

a16z crypto1


I guess this is the week I am going to compliment our competitors in the VC business. That meme started yesterday in my post on Benchmark and will continue today. Yesterday afternoon my friend Chris Dixon announced a new VC fund called “a16z crypto” which he will lead with a team of great investors, many of which are also friends, including his new partner Katie Haun who I serve on the Coinbase board with. She is a very special person as Ben Horowitz described in this post. Go read the blog post which Chris wrote to announce the fund. It is among the best articulations of the crypto opportunity that I have read. Here are some of the concepts he explains which had me nodding my head: Trust is a new software primitive from which other components can be constructed. and The new primitive of trust also means that 3rd-party developers, entrepreneurs, and creators can build on top of crypto-powered platforms without worrying about whether the rules of the game will change later on. In an era in which the internet is increasingly controlled by a handful of large tech incumbents, it’s more important than ever to create the right economic conditions for developers, creators, and entrepreneurs. Trust also enables new kinds of governance where communities collectively make important decisions about how networks evolve, what behaviors are permitted, and how economic benefits are distributed. and We believe that just as the last three megatrends — mobile, social, and cloud — intersected and reinforced each other, so will the next three megatrends — next-gen computing devices, AI, and crypto. and crypto is purely a software movement and doesn’t depend on a hardware buildout, in contrast to, say, the internet, which required laying cables and building cell towers. Second, the space is developing extremely rapidly, partly because the code, data, and knowledge is largely open source, and partly because of the increasing inflow of talent. and Cryptogoods can unlock new experiences and business models for games and other forms of media. I really like the term “cryptogoods” and plan to start using it as my default word for NFTs and related efforts. Many of our crypto investments have been with Chris and his partners and I hope that will continue. They are fantastic to work with. https://avc.com/2018/06/a16z-crypto/

a16z crypto


I guess this is the week I am going to compliment our competitors in the VC business. That meme started yesterday in my post on Benchmark and will continue today. Yesterday afternoon my friend Chris Dixon announced a new VC fund called “a16z crypto” which he will lead with a team of great investors, many of which are also friends, including his new partner Katie Haun who I serve on the Coinbase board with. She is a very special person as Ben Horowitz described in this post. Go read the blog post which Chris wrote to announce the fund. It is among the best articulations of the crypto opportunity that I have read. Here are some of the concepts he explains which had me nodding my head: Trust is a new software primitive from which other components can be constructed. and The new primitive of trust also means that 3rd-party developers, entrepreneurs, and creators can build on top of crypto-powered platforms without worrying about whether the rules of the game will change later on. In an era in which the internet is increasingly controlled by a handful of large tech incumbents, it’s more important than ever to create the right economic conditions for developers, creators, and entrepreneurs. Trust also enables new kinds of governance where communities collectively make important decisions about how networks evolve, what behaviors are permitted, and how economic benefits are distributed. and We believe that just as the last three megatrends — mobile, social, and cloud — intersected and reinforced each other, so will the next three megatrends — next-gen computing devices, AI, and crypto. and crypto is purely a software movement and doesn’t depend on a hardware buildout, in contrast to, say, the internet, which required laying cables and building cell towers. Second, the space is developing extremely rapidly, partly because the code, data, and knowledge is largely open source, and partly because of the increasing inflow of talent. and Cryptogoods can unlock new experiences and business models for games and other forms of media. I really like the term “cryptogoods” and plan to start using it as my default word for NFTs and related efforts. Many of our crypto investments have been with Chris and his partners and I hope that will continue. They are fantastic to work with. https://avc.com/2018/06/a16z-crypto/

Slowing Down To Speed Up1


I saw this chart in Recode’s piece on Benchmark: if("undefined"==typeof window.datawrapper)window.datawrapper={};window.datawrapper["aV5nW"]={},window.datawrapper["aV5nW"].embedDeltas={"100":664,"200":600,"300":550,"400":550,"500":550,"700":525,"800":525,"900":525,"1000":525},window.datawrapper["aV5nW"].iframe=document.getElementById("datawrapper-chart-aV5nW"),window.datawrapper["aV5nW"].iframe.style.height=window.datawrapper["aV5nW"].embedDeltas[Math.min(1e3,Math.max(100*Math.floor(window.datawrapper["aV5nW"].iframe.offsetWidth/100),100))]+"px",window.addEventListener("message",function(a){if("undefined"!=typeof a.data["datawrapper-height"])for(var b in a.data["datawrapper-height"])if("aV5nW"==b)window.datawrapper["aV5nW"].iframe.style.height=a.data["datawrapper-height"][b]+"px"}); It’s an interesting chart because it breaks out new investments and follow-on investments, both of which have been falling at Benchmark for going on five years now. The Recode article, written by Teddy Schliefer, also states that Benchmark has not raised a new core fund in over four years. Our numbers at USV are not as stark, we never took up our investing pace that much. We have always done around 6-10 new deals a year and while there is a fair bit of variability in that number year to year, over time it has stayed pretty constant. But we last raised a new core fund in early 2016 and we are maybe 2/3  of the way through investing that so it should take us at least three years to put that fund to work. That is down from the two year period where we went from the 2012 fund to the 2014 fund to the 2016 fund. So Benchmark is not the only leading VC firm that has slowed things down over the last three to four years. Teddy makes an interesting point in his piece: That long a dry spell between funds — at a time when rival firms are competing with one another to raise bigger and bigger war chests at a faster and faster clip, led by SoftBank’s $100 billion Vision Fund — is decidedly unusual. Longtime readers know that I have a huge amount of respect for Benchmark. I think they are a firm that beats to its own drum and does what it thinks is right and doesn’t worry too much about what others think. That approach leads to better returns over the long run in my view. But if there are diverging perspectives among the top-tier VC firms right now, who is right? Or maybe both are right. Slow down the pace of early-stage investing and step on the gas in later-stage/growth? And then, of course, there is crypto, where a lot of the smart people and smart money is going. Chris Dixon at Andreessen is raising a dedicated crypto fund. Matt Huang leaves Sequoia to do a crypto fund with Fred Ehrsam. And those are just two high profile examples, but there is most definitely a discernable pattern of smart money and smart people moving to the crytpo sector over the last few years. So times they are a changing in VC land right now. Which mirrors the broader tech sector which is maturing and consolidating while a next wave starts brewing. How to play this whole thing is challenging. The future of the VC business and its top firms are in flux and those who play it right stand to gain a lot and those who don’t stand to lose a lot. It is most definitely not a time for the status quo. https://avc.com/2018/06/slowing-down-to-speed-up/