Strategy of Top VC Firm Simple, Expensive

If you are interested in startups and venture capitalists and money (AND WHY WOULDN’T YOU BE), you must read Erick Schonfeld’s piece on three-year-old venture capitalist firm Andreessen Horowitz. Schonfeld does a really great job of explaining the politics of Silicon Valley, how VC funds work, and how Andreessen Horowitz quickly become one of the top VC firms. One way: “They somehow seem to get into every deal that matters.” Their investments include Skype, Facebook, Instagram, Twitter, Foursquare, Pinterest, Airbnb, Fab, Groupon, and Zynga. HOW DO THEY DO IT? “The underlying thesis behind Andreessen Horowitz’s investing strategy is that in any given year only 15 companies will make up more than 90 percent of the returns. So it pays to get into those companies at almost any price.” Okay then!

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