A16z's "big venture" model was based on two core ideas: first, that Marc Andreessen's "Software is Eating the World" thesis would create 10x more viable companies, and second, that founders required a superior VC "product" with platform services that only scale could provide.

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.

a16z's investment philosophy is to assess founders on how world-class they are at their core strengths. Horowitz warns it's a mistake to pass on a uniquely talented founder due to fixable weaknesses (e.g., no go-to-market plan) and an equal mistake to back a less talented founder just because they lack obvious flaws.

A simple heuristic for VC portfolio construction. For companies with exponential, undeniable traction (the 'absolute winners'), any ownership stake is acceptable to get in the deal. For pre-traction companies that only 'could work,' securing high ownership is critical to justify the risk.

While an operating company must commit to a single, coherent strategy, a venture portfolio can invest in opposing models simultaneously (e.g., big vs. small models, open vs. closed source). This allows VCs to win regardless of which future unfolds.

Rather than trying to predict which founders will succeed, veteran investor Ariel Poler optimizes for personal growth and impact. His criteria: work with good people on interesting projects where he can learn and contribute. He accepts that many will fail, viewing the experience and relationships as valuable outcomes.

Unlike firms whose value is tied to a few key partners, Andreessen Horowitz is building an institution akin to Goldman Sachs. Their bet is that venture capital will evolve from small partnerships to large, institutional firms, making them better equipped to handle generational transitions and founder departures.

When evaluating revolutionary ideas, traditional Total Addressable Market (TAM) analysis is useless. VCs should instead bet on founders with a "world-bending vision" capable of inducing a new market, not just capturing an existing one. Have the humility to admit you can't predict market size and instead back the visionary founder.

The firm's structure is a psychological tool. It gives founders access to an otherwise inaccessible network, creating small wins that build confidence. This prevents the 'vicious confidence spiral' caused by bad advice and slow progress, enabling faster, bolder decision-making.