A16z's foundational belief is that founders, not hired "professional CEOs," should lead their companies long-term. The firm is structured as a network of specialists to provide founders with the knowledge and connections they lack, enabling them to grow into the CEO role and succeed.

The traditional IPO exit is being replaced by a perpetual secondary market for elite private companies. This new paradigm provides liquidity for investors and employees without the high costs and regulatory burdens of going public. This shift fundamentally alters the venture capital lifecycle, enabling longer private holding periods.

VCs who spin out of tech giants like Airbnb have a powerful initial network. However, this edge typically expires after their third fund as original colleagues move on, forcing them to build a more durable, independent network to source deals.

Centerbridge initially sought investors equally skilled in PE and credit, a "switch hitter" model they found unrealistic. They evolved to a "majors and minors" approach, allowing professionals to specialize in one area while gaining significant experience in the other. This fosters deep expertise without sacrificing the firm's integrated strategy.

The seed investing landscape isn't just expanding; it's actively replacing its previous generation. Legacy boutique seed firms are being squeezed by large multistage funds and new emerging managers, implying a VC's relevance has a 10-15 year cycle before a new cohort takes over.

To win highly sought-after deals, growth investors must build relationships years in advance. This involves providing tangible help with hiring, customer introductions, and strategic advice, effectively acting as an investor long before deploying capital.

Limited Partners (LPs) often celebrate when a team member is hired away for a bigger role, viewing it as successful talent development. In stark contrast, General Partners (GPs) in private equity and venture capital typically view such a departure as a failure or a negative event.

The venture capital paradigm has inverted. Historically, private companies traded at an "illiquidity discount" to their public counterparts. Now, for elite companies, there is an "access premium" where investors pay more for private shares due to scarcity and hype. This makes staying private longer more attractive.

The venture capital return model has shifted so dramatically that even some multi-billion-dollar exits are insufficient. This forces VCs to screen for 'immortal' founders capable of building $10B+ companies from inception, making traditionally solid businesses run by 'mortal founders' increasingly uninvestable by top funds.