To maintain agility and deep expertise at scale, Andreessen Horowitz restructured into independent, specialized teams for sectors like bio, crypto, and AI. Each sub-team operates like the original firm, preventing large, unproductive group decisions and enabling focused expertise.
In the past, with few media channels, the goal was defensive message control. Today, with infinite platforms, the strategy is offensive. Founders should focus on being consistently interesting rather than fearing a single misstep, as they can always 'flood the zone' with new content to correct the narrative.
A true market bubble isn't defined by high valuations but by collective psychology. The most dangerous bubbles form when skepticism disappears and everyone believes prices will rise indefinitely. Constant debate about a bubble indicates the market hasn't reached that state of universal conviction.
Ben Horowitz warns against wealth taxes on unrealized gains by citing Norway's experience. The policy required founders to pay taxes on their private company's rising valuation with illiquid stock, leading to an exodus of entrepreneurs and effectively dismantling the local tech ecosystem.
Unlike the dot-com era where valuations far outpaced a small, slow user base, the current AI shift is driven by products with immediate, massive adoption and revenue. The technology is delivering value today, not just promising it for the future, which fundamentally changes the financial dynamics.
To tackle a paradigm shift like AI, Andreessen Horowitz goes beyond hiring new talent. The firm mandates internal education, including training materials and exams, to ensure every relevant team member becomes 'AI native.' This prevents existing talent from becoming obsolete and ensures deep, firm-wide understanding.