Venture capital has changed... Drastically
"Now, here's the problem. If you were one of those venture capital firms that started all those years ago, you were likely set up, as I said, as a partnership with shared economics and shared control.
If you have shared control, it's very hard to reorganize. To reorganize, you need a single decision maker. There is no way to reorganize if everybody gets a vote. It's going to be bad.
So as a result, we've been able to scale because we have centralized control. But most of our competitors have not been able to scale. Very few have.
And so I think what we have now is large firms who can cover all the technological areas and then specialized firms that are, okay, I'm a specialist in AI infrastructure, I'm a specialist in bio, or I'm a specialist in crypto, or I'm a specialist in games, but I'm not doing all of that.
And the kind of firms in the middle, I think, are getting squeezed out."
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@a16z Co-Founder,
@bhorowitz on A16z Show