a16z, a venture The venture capital firm is known for its large fund size and plans to shake up the VC game when it plunged into the industry back in 2009, according to a recent report, to potentially increase its deal flow. Preparing a new strategy for It’s creating a fund-of-funds to invest in smaller venture capital pools, giving it visibility on the next generation of breakout tech companies.
a16z did not respond to requests for comment on this story.
Tendency of large funds – traditionally more focused on making later stage deals, as it is harder to deploy large funds into smaller, earlier deals – trying to find a way to get into earlier stage companies It is not a new thing to do. And it’s not hard to understand the reasoning behind a16z’s effort, given that it’s predictable: if it’s hard to go to large funds quickly, and so is small, why not just fund early investors? , And then let them be taken advantage of. relationships?
The new a16z effort sparked quite a bit of conversation inside TechCrunch+, so we decided to adopt our traditional “talk about it out loud” model of sharing different perspectives on the matter from inside our newsroom.