The power dynamic in venture capital can easily lead to arrogance. To counteract this, a16z implemented a daily ritual—a fine for being late to founder meetings. This constantly reinforces respect for the entrepreneur's time and prevents negative cultural drift.
To combat complacency, Sequoia's office has a wall where every investor has personally written, "We are only as good as our next investment." This daily, physical reminder reinforces the firm's cultural paranoia and focus, ensuring they never rest on past successes.
To make culture tangible, create memorable rules with "shock value." At A16Z, being late for a meeting with an entrepreneur costs a partner $10 per minute. This financial penalty makes the abstract value of "respecting founders' time" an unforgettable and enforceable daily practice.
To fix a failing process like cash collections, the CEO should hold a daily 8 a.m. meeting with the team. By repeatedly asking a direct question like, "Where's my money?", you force the rapid resolution of small, overlooked blockers and create an unscalable but effective communication channel.
Culture isn't about values on a wall; it's about daily habits enforced by memorable rules. Ben Horowitz argues that rules need "shock value," like A16z's policy of fining partners $10 per minute for being late to a founder meeting. This makes the underlying principle—respect—unforgettable and non-negotiable.
Behaviors established in the very first meeting—like where people sit, who speaks first, and how much they contribute—tend to become permanent norms. This makes the initial formation period a critical, high-leverage opportunity to intentionally shape a group's culture for success, rather than letting it form by accident.
Culture isn't an abstract value statement. It's the sum of concrete behaviors you enforce, like fining partners for being late to meetings. These specific actions, not words, define your organization's true character and priorities.
To ensure the "triumph of ideas, not the triumph of seniority," Sequoia uses anonymized inputs for strategic planning and initial investment votes. This forces the team to debate the merits of an idea without being influenced by who proposed it, leveling the playing field.
Don't let the cofounder dynamic run on autopilot. Proactively establish "vows"—commitments on decision-making and conflict resolution. Then, create a regular relationship rhythm for check-ins. This practice of stepping "onto the balcony" to observe the relationship is crucial for long-term health and success.
Instead of vague values, define culture as a concrete set of "if-then" statements that govern reinforcement (e.g., "IF you are on time, THEN you are respected"). This turns an abstract concept into an operational system that can be explicitly taught, managed, and improved across the organization.
Investor Jason Calacanis insists his team's responsiveness must mirror that of their portfolio founders. Since founders often reply within minutes, he expects his team to operate at the same tempo, viewing a multi-day response time as a failure to match the urgency and work ethic of the entrepreneurs they back.