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Andreessen Horowitz
The a16z Podcast discusses tech and culture trends, news, and the future – especially as ‘software eats the world’. It features industry experts, business leaders, and other interesting thinkers and voices from around the world. This podcast is produced by Andreessen Horowitz (aka “a16z”), a Silicon Valley-based venture capital firm. Multiple episodes are released every week; visit a16z.com for more details and to sign up for our newsletters and other content as well!
a16z Podcast: Building Worlds with VR, Art, and Narrative
Once upon a time, Robert Stromberg got a phone call from "Jim" Cameron (aka James Francis Cameron of Terminator and Titanic fame) about a little project called Avatar. Before he knew it, he was responsible for designing the organic world of Pandora, from bioluminescent plants to lush mountaintops. That was when Stromberg realized how much more technology could do, when ready, for creating more such virtual worlds. He'd actually been creating such worlds for ages, from drawing monsters in childhood to doing matte art, production design, art direction, and more for films.
In this episode of the a16z Podcast, the two-time Academy Award winner (for production design on Avatar and Alice in Wonderland) and director of Maleficent shares his views on the evolution of filmmaking, narrative, and virtual reality. Stromberg directed the VR gaming experience based on The Martian (which received a Cannes Silver Lion award) and co-founded The Virtual Reality Company, which is re-imagining the film studio for the next generation of tech.
What challenges do we face in an immersive medium, what will narratives look like, and what new (or even retro) techniques will we need? All this and more in this episode -- along with a16z partners Kyle Russell, Hanne Tidnam, and Sonal Chokshi -- continuing our series on new medium storytelling.
image: Wikimedia Commons
The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments and certain publicly traded cryptocurrencies/ digital assets for which the issuer has not provided permission for a16z to disclose publicly) is available at https://a16z.com/investments/.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.
38:2927/01/2017
a16z Podcast: The Why, How, and When of PR
"Punch above your weight" -- If there's one thing public relations (PR) should help startups and founders do, it's that. Unfortunately, some companies are actually punching below their weight when there's a strong company, founder, product ... yet nobody knows about let alone talks about you. Or worse, someone else defines you first. Or you just become a hype machine.
So what conversations should you be in? Is it good or bad to do PR before you have a product? And operationally, WHEN is the right time to build a PR function; WHO should you hire (whether a full-time PR person, consultant, or agency); and HOW can you tell the good from the bad? How do you even know "it's working", when time-is-money for both the startup and the PR firm that's billing you hourly or monthly?
There's no easy answer, but it doesn't have to be that hard, either. In this episode of the a16z podcast, partners Margit Wennmachers and Kim Milosevich -- PR veterans who've seen all sides of public relations, from agency to big companies to startups -- share how to strike the just-right balance between doing PR too early or too late, time wasted or time wisely spent, and knowing to say "not now" vs. no... It's all about the art of persuasion.
The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments and certain publicly traded cryptocurrencies/ digital assets for which the issuer has not provided permission for a16z to disclose publicly) is available at https://a16z.com/investments/.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.
42:2726/01/2017
a16z Podcast: VR, AR, and Beyond: The New Medium of Human Experience
The building blocks for VR and AR are finally here -- but the content is just beginning. So everything you'll actually experience and consume in these new mediums over the next few years is being built right now. Formats aren't yet defined or locked down, and the field is bubbling up with experiments in forms, formats and genres, from narrative to games to live events. As we begin to have real time rendered characters and AI-driven environments that you can interact with, the storytelling structure will also need to completely change.
Are these mediums inherently social -- or just the opposite? What will self expression look like? What experiences are being built? Because fundamentally, that is the "celluloid" we are now working with -- human experience, says Within cofounder and filmmaker Chris Milk.
Bigscreen founder and CEO Darshan Shankar, Lytro CEO Jason Rosenthal, and Milk join a16z's Kyle Russell in conversation about the challenges, potential, and emotional power of these new technologies -- on this episode of the a16z Podcast, recorded at the inaugural a16z summit.
The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments and certain publicly traded cryptocurrencies/ digital assets for which the issuer has not provided permission for a16z to disclose publicly) is available at https://a16z.com/investments/.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.
26:0224/01/2017
a16z Podcast: Of Policy, Capital, and the Startup Ecosystem
How to think about business policy and top-of-mind issues for the tech industry, given a new president? From what agencies matter for startups and VC to what the first 100 days (and next two years!) look like, a16z managing partner Scott Kupor and president and CEO of the National Venture Capital Association (NVCA) Bobby Franklin share what happens between elections and when the reality of the Washington process sets in post-inauguration.
What are some of the discussions that are happening around taxation, special stock exchanges for earlier-stage/ smaller companies, and what was the JOBS Act again? Believe it or not, seemingly wonky details like these incent behavior -- for better or worse, with intended and unintended consequences -- and in this episode of the a16z Podcast, we discuss all this and more. (Company) size does matter, after all.
23:5121/01/2017
a16z Podcast: Of Presidents, Policies, and Tech
How to think about tech policy and top-of-mind issues for the tech industry, given a new president? From what agencies matter for different tech domains -- e.g., autonomous cars, drones, fintech, healthcare -- to recent staffing moves, the a16z Policy and Regulatory Affairs team shares their views in this episode of the podcast.
What happens to tech policy when you have a dominant Republican presence in both Congress and most states, yet a Democratic majority of mayors? Especially when cities (potentially laboratories of experimentation) may be where all the real tech action's at? How does tech policy play out differently at the local, state, international, and even federal levels? Especially when many of the tech issues don't fall along party lines ... and the traditional way you look at issues is "left vs. right" -- "but it's almost like 'forward/backward'" here. And finally, how should entrepreneurs think about engaging with policymakers, and vice versa?
40:1921/01/2017
a16z Podcast: Culture and/of Design
"Mobile-first" (and now too AI-first) has been a mantra of sorts in design, but what does that mean at a company, product management, and competitive level? Especially when someone in company X will always say "we should do what Y did" -- even if they have no idea let alone data why Y did it.
And while designing for screens is "like growing a carp in a bathtub" (will inevitably grow to the size of the container), what do design constraints mean in an increasingly screen-less world -- one where everything will eventually become an input ... and even an output? What does it mean to design for a mobile world where "an app isn't really an app" -- and the very definition of apps are themselves evolving, including cross-culturally?
From the age-old question of whether there are design universals to the age-old dynamic of bundling/unbundling, the guests on this episode of the a16z Podcast -- Luke Wroblewski and a16z's Connie Chan (in conversation with Sonal Chokshi) riff, hallway style, on all things design in practice. And on why startups may have the ultimate design advantage.
29:5218/01/2017
a16z Podcast: Real Estate -- Ownership, Asset, Economy
The largest asset class in the United States is owner-occupied real estate, yet options for homeowners accessing this are very binary right now: either own 100% of your home (with a mortgage), or own nothing. And when people do “own”, that ownership is often skewed by debt. Of course, debt works out great for some, given their risk profiles and potential upside (if the house keeps appreciating); but the downside risk and costs are disproportionately borne by the homeowner. And millennials can’t even enter the housing market in the first place.
So how can technology help address a system skewed by debt financing, by letting homeowners sell fractions of equity to unlock wealth without necessarily borrowing against their homes? How can such new approaches help homeowners and financers better align risk and incentives, and unlock a whole new asset class for all kinds of investors? How can they help avoid mortgage crises around the world, and the macroeconomic impact of reduced spending, lost jobs, and more? And finally, what is the role of policy here … especially since the government is de facto subsidizer of certain home finance products over others.
We discuss all this and more in this episode of the a16z Podcast, featuring general partner Alex Rampell; CEO & co-founder of Point, Eddie Lim; and Atif Mian, professor of economics and public affairs at Princeton University who also co-authored (with Amir Sufi) the book House of Debt: How They (and You) Caused the Great Recession, and How We Can Prevent It from Happening Again — in conversation with deal and investing team partner Angela Strange.
29:4413/01/2017
a16z Podcast: Machine Intelligence, from University to Industry
From the significance of Google DeepMind's AlphaGo wins to recent advances in "expert-level artificial intelligence" in playing an imperfect/ asymmetric information game like poker, toys and games have played and continue to play a critical role in advancing machine intelligence.
One of the pioneers in this area among others is the Alberta Innovates Centre for Machine Learning -- now the Alberta Machine Intelligence Institute (amii) -- which in 2007 solved the long-standing challenge of checkers, and in 2015 produced the first AI agent capable of playing "an essentially perfect game" of heads-up limit hold’em poker. But what does that mean for the evolution of such technology out of play and into production? Out of universities and into industry? (Especially when many such university programs and talent are being hollowed out by companies and they're reliant on intellectual property or provincial support, as is the case of this University of Alberta based institute). And how can CEOs and others embrace learning about this tech somewhere in between?
So... what will it take to make AI "real"? What about genetic algorithms, treating computers like people, and other near- and far-future possibilities? This episode featuring the executive director of Amii, Cameron Schuler, and a16z deal, research, and investing team operating head Frank Chen covers all this and more. The conversation was recorded recently as part of our inaugural a16z Summit event.
image: Nyks / Wikimedia Commons
27:2411/01/2017
a16z Podcast: New Year, New Horizons -- Pluto!
What (on earth) does it take to get a signal to Pluto? Stanford senior scientist and astronomer Ivan Linscott, part of the team that ran the radio science experiment on the New Horizons probe, shares in conversation with a16z's Frank Chen all the nitty gritty details about their project using Ruse radio transmissions to gather info about Pluto. Listen in on exactly what it really takes to do so -- everything from commandeering old Cold War spy technology and plutonium to completing the entire mission on approximately 250 watts, and including other such highlights as a motorcycle riding, guitar playing, leather jacketed, tattooed FPGA fixer coming to fix everything when it seemed a lost cause, and the satellite going dark just moments before contact. From deep tech details to the drama of accomplishing such a difficult mission, this podcast is all about how, exactly, we sent a radio signal to Pluto.
49:0801/01/2017
a16z Podcast: The Movement of Money
As companies expand out from the internet into the rest of the economy — the proverbial bits to atoms — “the business models are becoming more complicated, more interesting, more payment based”, observes Patrick Collison, CEO and co-founder of payments platform Stripe, which enables apps/websites to programmatically move money around.
But as such companies become “the operating platform for commerce”, we also have an interesting paradigm where people, not governments, are controlling the commerce supply — so “It’s not the money supply. It’s the commerce supply,” argues a16z general partner Alex Rampell. This is especially true as payments become easier, as trust and payments become interwoven, and as online, peer-to-peer marketplaces address information asymmetry.
So what does this all mean for advertising as a business model, for trading goods and services directly, or for the future of stores? What does it mean for liquidity, for interest rates as a lever for the economy, and for …the end of cash? And finally, when legacy and emerging non-software businesses are increasingly networked and run on “technologically enabled rails”, what does that mean for geopolitical risk? Collison and Rampell discuss all this and more on this episode of the a16z Podcast, a hallway-style riff on all sorts of money matters.
The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments and certain publicly traded cryptocurrencies/ digital assets for which the issuer has not provided permission for a16z to disclose publicly) is available at https://a16z.com/investments/.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.
27:0031/12/2016
a16z Podcast: The Realities of Aging / When Healthcare Is Local
As people live longer, aging is more top of mind than ever. This is especially true for the "sandwich generation" wedged between caring for aging parents as well as young children at the same time.
The fact is, the 65+ year old population (but don't you dare homogenize a multi-decade age group!) will double over just the next 15-20 years. So how does this fit into our current healthcare system? How does it fit current retail experiences, like for buying adult diapers? What are the design challenges when you're optimizing for screen-less interaction and data collection in a home environment? And finally, where do providers and payers come in?
Honor's head of design Renato Valdés Olmos and head of health system integration Kelsey Mallard join this episode of the a16z Podcast to talk about all this and more. This all goes beyond discussions about fighting age with tech though -- it's about the realities of aging and caregiving, from the very mundane (going to the bathroom, for instance) to the very profound (staying in one's home, church, and community). That's why all "healthcare is local" ... or should be.
The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments and certain publicly traded cryptocurrencies/ digital assets for which the issuer has not provided permission for a16z to disclose publicly) is available at https://a16z.com/investments/.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.
31:5127/12/2016
a16z Podcast: Mobility and the Global Refugee Crisis
"We throw around words like 'crisis' very easily, but this is a global crisis, and it is of historic proportions," says current U.S. Deputy Secretary of State Tony Blinken about the refugee crisis (for which he and his department mobilized a response that significantly accelerated government efforts to assist refugees, as well as engage the tech sector). "People don't realize that before 2011, the number of Syrian refugees was zero," shares Lina Sergie Attar of the non-profit Karam Foundation, which aims to build a better future for Syria through education, smart aid, and sustainable development programs for internally displaced communities inside Syria as well as refugee populations in neighboring countries.
Yet in this episode of the a16z Podcast (with Sonal Chokshi and a16z's Matt Spence, who was Deputy Assistant Secretary of Defense at the Middle East) both agree that it's a crisis that requires a global response, including from the tech industry. Especially when technologies like the smartphone, which "is the most important object" that refugees have -- for migration, communication, documentation, connection, commerce, more -- can and do play a role.
But we need to go beyond the "mobile migration" narrative here: Maybe we shouldn't focus on promoting superhero 'migration' success stories or citing statistics, and instead find out more about the broader context and details of refugees' day to day lives. Maybe it's not about being 'solutionistic' ... but is about finding solutions. Maybe it's about the intersection of foreign policy and technology; it most certainly is about our collective humanity.
image: Mustafa Bader / Wikimedia
34:1816/12/2016
a16z Podcast: Produce or Perish! (What We Eat)
Nature is the ultimate complex system, of course — but with today’s technology, it’s now provided us with an “incredible toolkit” of different molecules that material scientists can treat like Legos to make some really interesting products. One of those is a protective layer for fruits and vegetables that extends shelf life and freshness. Because all produce is seasonal, it’s perishable — so there’s a limited geographical radius around which it can travel… whether by land, sea, or air.
How does this change what food we sell, buy, eat… taste? How does it affect smallholder farmers both in the United States and in the developing world — where there’s no real infrastructure, yet alone for a cold-storage supply chain? And finally, what are some of the most interesting advances in the interdisciplinary field of materials science right now and up next: Is it finally time for these “hard”ware companies to be more software-like?
All this and more (and unfortunately, some puns too!) on this episode of the a16z Podcast with Apeel founder and CEO James Rogers and a16z partners Malinka Walaliyadde and Sonal Chokshi. Will tech reshape the food-map of the world?
The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments and certain publicly traded cryptocurrencies/ digital assets for which the issuer has not provided permission for a16z to disclose publicly) is available at https://a16z.com/investments/.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.
35:2714/12/2016
a16z Podcast: The Internet Is Your Movement
Clearly disruption plays out not just in business but also in politics. Whether it was the Scottish national party, recent election campaigns, or local school boards, people grew and organized communities online all last year through NationBuilder -- which provided a software platform for those otherwise underserved from an established technology perspective (hence the disruption theory reference).
Harnessing the energy of communities goes beyond politics though, to all kinds of movements. But what happens when people remain in filter bubbles on the internet -- the very internet that NationBuilder CEO Jim Gilliam famously called his "religion"? What happens when that religious fervor or energy can be... "rabid"-like? Especially in a context where money, media, and other traditional institutions might not have the same impact or control they once did?
"The internet can reflect back whatever it is that we want it to -- and we need more leaders to step up and say, 'Look, this is the way that I want it to be'," argues Gilliam in this episode of the a16z Podcast in conversation with Ben Horowitz (based on a session recorded at our recent a16z Summit event). Movements, it seems, are really about leadership, and the future is not written yet as people create new models of voice and choice.
The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments and certain publicly traded cryptocurrencies/ digital assets for which the issuer has not provided permission for a16z to disclose publicly) is available at https://a16z.com/investments/.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.
22:2509/12/2016
a16z Podcast: Health Data -- A Feedback Loop for Humanity
"We live in a world where we use millions of variables to predict which ad you're going to click on. Whether or not you deserve to get a loan. What movie you might watch next. But when it comes to our bodies and even serious diseases, we want to reduce things down to just one or two variables." It's insane that we actually collect so little data about our bodies. The modern day physical is downright spartan in what it captures, not to mention that we're using 200-year old tools to capture that very limited data.
Which is why we need to borrow from other domains of science and data and apply that to our bodies, in more ways than one, argues Q founder and CEO Jeffrey Kaditz with a16z bio fund general partner Vijay Pande (in conversation with Sonal Chokshi) on this episode of the a16z Podcast. But how do we get there? What would data "rights" look like -- and could we possibly donate data much like we currently donate organs? And for catching diseases like prostate or breast cancer early, how can we use data captured over multiple points in time -- something not really done right now in medicine -- to be more predictive, sensitive, and specific beyond so-called "representative" population samples? What IS a 'diagnostic', really, anyway?
The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments and certain publicly traded cryptocurrencies/ digital assets for which the issuer has not provided permission for a16z to disclose publicly) is available at https://a16z.com/investments/.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.
30:1105/12/2016
a16z Podcast: Knowledge Builds Technology and Technology Builds Knowledge -- with Joel Mokyr
The Industrial Revolution (and period between 1500-1700) was an unprecedented age of technology and economic progress — not unlike today’s, in fact — where we took “quantum leaps” forward in tech by taming electricity, making cheaper steel and refining iron cheaply, automating fiber looms, pumping water out of coal mines, figuring out how to measure longitude at sea, improving the quality of food, preventing smallpox, … even bleaching underwear.
But what really triggered the Industrial Revolution? Why did it take place in Europe and spread beyond? It has to do with a competitive, open market of ideas — a transnational “Republic of Letters”, not unlike the early days of the blogosphere. And the conditions that created it (virtual networks, open access science, weak ties, and so on) are the very conditions we may need to sustain growth and prosperity even today, argues Joel Mokyr, professor of economics and history at Northwestern and author of the new book A Culture of Growth: The Origins of the Modern Economy.
Despite fears of what new tech may bring, the alternative to not innovating is stagnation — “not doing it is worse”, argues Mokyr in this episode of the a16z Podcast. So how do we then measure that growth? How does this all play out internationally, and institutionally? And what happens when we bring shared focus to big problems, like climate change? If there’s one pattern that continues to play out throughout history to today, it’s that “Knowledge builds technology and technology builds knowledge.”
image: Library of Congress
36:1427/11/2016
a16z Podcast: Drones for Delivery in Healthcare
“If we have instant delivery for our burgers,” says Zipline CEO and co-founder Keller Rinaudo, “we should have it for our medicine.” So while some people debate whether drone delivery for burritos, beers, and books is a marketing gimmick, one of the most important kinds -- urgent delivery of urgent healthcare -- is happening right now through Zipline’s delivering blood and vaccines to patients and hospitals in Rwanda.
The peace dividend of the smartphone (and electric vehicle) wars has yielded components and cost dynamics that make all this possible. But more importantly, the economics -- bypassing motorcycles and going 20x as fast -- are actually profitable, as drones can help leapfrog existing (or lacking) road infrastructure. "It’s trade, not aid" ... especially as this approach also builds out commercial infrastructure in Africa.
In this episode of the a16z Podcast (in conversation with Chris Dixon and recorded at our recent inaugural a16z Summit), Rinaudo and UPS' Vice President of Healthcare Strategy John Menna discuss using drones to leapfrog infrastructure, and save lives by doing it in less than 15 minutes. But how are regulation and locals responding? What does the trend towards “light and fast” logistics -- based on smaller inventory in a number of controlled-environment yet centrally managed locations -- look like? And finally, how can drones for healthcare delivery further the trend of personalized medicine?
The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments and certain publicly traded cryptocurrencies/ digital assets for which the issuer has not provided permission for a16z to disclose publicly) is available at https://a16z.com/investments/.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.
21:5123/11/2016
a16z Podcast: Old Food, New Tech -- 'Clean Meat'
You’ve heard the numbers or some statistic like this: By the year 2050, we’ll need to feed 9.7 billion humans on the planet. Our current production and meat-making methods -- growing crops to feed to animals to turn them into food -- can’t keep up … not to mention it’s not very good for the environment.
Yet meat is at the center of the plate for most meals, for most people. So how do we go from where we are to where we need to be? Especially since food is fundamentally an emotional experience! You can’t browbeat consumers into doing the "right" thing by selling on the rational benefits. You have to make them taste it … and crave it.
In this episode of the a16z Podcast (continuing our annual Thanksgiving and ongoing food x tech series) Uma Valeti, CEO of Memphis Meats; David Lee, COO of Impossible Foods; and Bruce Friedrich, Executive Director of The Good Food Institute discuss -- in conversation with a16z partner Kyle Russell -- different methods of making meatless meats or “clean meats”. More broadly, we’re beginning to see a new era of food, and with it, radical transparency around understanding where our food comes from and how it’s made … something most people currently don’t know (or don’t want to know). From making to marketing, what will it take to turn the world's oldest food production tradition into an entirely new one? Could a personalized, local “meat brewery” be the future of food?
25:2523/11/2016
a16z Podcast: The Business of Creativity -- Pixar CFO, IPO, and Beyond!
You've heard a version of this story before: Steve Jobs calls some executive out of the blue to come work for him. Only this time the story turns out great ... and the company wasn't Apple. This episode of the a16z Podcast shares some of the journey that former CFO Lawrence Levy went on with Steve Jobs as they took Pixar -- a company then on the verge of failure -- to its IPO and subsequent greatest hits.
It's sort of an adventure story but is really more of a quest for product-market fit. How did they figure out a model for such an old-but-new business (i.e., animation and entertainment)? How did they take an improbable plan and figure out how to make it work -- both qualitatively and quantitatively? How did they then navigate and straddle the diverse worlds of Silicon Valley, Hollywood, and Wall Street? And finally, how did they price their IPO, which was also a symbol of Steve Jobs' comeback story ... a narrative that's sometimes lost in the Apple story.
From the business of creativity to corporate culture, Levy -- former CFO of Pixar, board member, and author of the new book To Pixar and Beyond: My Unlikely Journey with Steve Jobs to Make Entertainment History -- shares his (and Jobs' untold) story. But it isn't just a story about finding the right model and numbers to build, explain, and measure the business; it's also, partly, about how to get the measure of one's humanity, too.
29:4109/11/2016
a16z Podcast: What's Next for Technology and National Security?
We live in very interesting times, to say the least -- whether it's a shift in how technology is built and adopted today compared to the past; a changing international landscape with leapfrogging players; or an increased cyberattack surface as computing and networking touch everything.
So what's next for technology and national security? This episode of the a16z Podcast is based on a conversation that took place last month between Marc Andreessen and Michèle Flournoy -- former Under Secretary of Defense for Policy and co-founder of the Center for a New American Security -- moderated by Matt Spence, partner on the a16z Policy and Regulatory Affairs team (and a former Deputy Assistant Secretary of Defense). It covers everything from technology procurement and the tyranny of the inbox, to the politics of industrial policy and ethics debates around use-cases for new technologies.
But... do we really want innovation, not just in the abstract but in the specifics? If so, how do we think about the future? And how can both policymakers and technologists work together in different ways to help the U.S. keep its competitive edge and "give the future a seat at the table"?
34:1809/11/2016
a16z Podcast: Messages and Movements in Politics AND Business
In business, as in politics, "the movement is the message" -- whether that "movement" is a product that's taking off grassroots-style in an enterprise, or is a political candidate. In fact, you can think of political campaigns in general as a lot like startups ... only there's no second place in politics! And you can definitely think of business -- and in particular go-to-market strategy -- as a lot like political campaigns: in allocating marketing resources, going up against incumbents, and much more.
Ultimately, it all comes down to the message -- setting the criteria and narrative as tailored for different "buyer" personas, from developers/users/CxOs to the voters you have to persuade. But how do you tell a message is working? With such complex, coordinated efforts behind a visionary product or person, is there room for instinct in message development and discipline?
And where does the competition come in? They're laying traps for sure, and while that's obvious in politics it may not be so obvious in business. So pay attention to political campaigns as a way to think about go-to-market business principles, argues a16z's Mark Cranney, with longtime political operator Todd Cranney (who is also his brother!) on this episode of the a16z Podcast, another one of our "hallway conversations".
The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments and certain publicly traded cryptocurrencies/ digital assets for which the issuer has not provided permission for a16z to disclose publicly) is available at https://a16z.com/investments/.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.
27:1103/11/2016
a16z Podcast: So Where Are We on the 'S-curve' for PC Devices?
There have been a number of new device announcements this past month -- from Google’s new Pixel phone (the first time they made their own phone on the hardware side as well) to more recently, Apple’s announcements around a new Macbook Pro and innovations in touch (including a Touchbar that replaces function keys and bringing TouchID to Macs); and then Microsoft, which among other things announced a new Surface Studio -- an all-in-one touchscreen desktop PC. How do these change the future of work?
Turns out, even seemingly small interface improvements could have significant consequences for user behavior. Just look at touch. More broadly, though, what happens when a software maker becomes a hardware maker? Or when we're in the middle of an architecture shift, as we are right now with x86 to ARM processors in mobile (and beyond)?
It's all about where you're at on the "S-curve" of innovation (a concept first coined by Gabriel Tarde and expanded on Everett Rogers in his theory of innovation diffusion). And sometimes, the best is the last... But how can we tell where something is on that curve? The right comparisons matter here, and a16z's Benedict Evans and board partner Steven Sinofsky try to make them in this episode of the podcast!
33:3529/10/2016
a16z Podcast: On the Genomics of Disease, From Science to Business
Once we sequenced the human genome, we'd know the cause of -- and therefore be able to help cure -- all diseases... Or so we thought. Turns out, 20,000 genes (and counting) didn't really explain why disease occurred. Sure, some could be explained by mutations in a single genome, but most, like cancer, are too damn complex. And while the focused, singular approach to understanding disease did yield some useful therapeutics, it's now reached its limits. It hasn't helped much on the diagnostics (and early detection) front, either.
That's where a systems approach to bio comes in, drawing on machine learning techniques as well as a sort of "Moore's Law" for genomics that's driving costs down, and fast. We're now focusing on the 99% of the genome that hasn't really been understood yet in terms of how they affect the human body and disease. But what will it take for such an approach to succeed? For one thing, it involves building an applications layer on top of the sequencing layer -- so can we borrow lessons from how the computing industry (from chips to apps) evolved here? What are some of the constraints unique to the healthcare system?
In this episode of the a16z Podcast, Freenome CEO and co-founder Gabriel Otte and a16z bio fund partners Vijay Pande and Malinka Walaliyadde (in conversation with Sonal Chokshi) talk all things genomics and disease from science to business, also covering recent news like Illumina to what's next beyond human genomics to future trends. Including what the ultimate, Elysium-like magical diagnostic machine is (hint: the magical is mundane!).
30:3818/10/2016
a16z Podcast: Stickers! Filters! Memes! Livestreams!
From glittery reaction gifs modded by grandparents to rage faces on Reddit, stickers (gifs and other layered images) and emotive “biaoqing” have taken over messaging culture in China and beyond. Stickers are tied to filter culture, too — whether originating in real life as purikura photo sticker booths in Japan or digitally as Snapchat filters.
Why are these forms of social communication so popular? Because sometimes you just want to say “I feel totally Nicki Minaj side-eye dot-GIF about this”, and no one can give a side-eye as good as Nicki Minaj can. But it’s not just about isolated expressions, celebrity stickers like Kimoji, or personalized bitmoji; stickers are shaping and codifying the way people talk to each other online in new and multi-layered ways.
It’s even connected to mobile livestreaming, a phenomenon that’s taking off in China right now, in the most mundane (food eating streams) to subversive (seductive banana eating streams) ways. And how are all these memes tied to monetization and payments? In this episode of the a16z Podcast, ROFLCon co-founder and human-centered researcher/writer Christina Xu and Connie Chan in conversation with Sonal Chokshi take us on a wild tour of cultural messaging memes and messaging tech in China and beyond.
47:0912/10/2016
a16z Podcast: Truce for Mobile, Battle for VR
The most recent Oculus Connect event (the third and largest yet) has been lauded as bringing us closer than ever to the future promised for virtual reality or VR. There have been many hardware moves by many players, both recently and over the past year. Who's in it to win it? How far are we from the "holy grail" of headsets that will truly mainstream VR? Will the killer app -- or layer -- for VR be social? And is there enough enthusiasm and activity to get us past the "trough of disillusionment" that inevitably follows the "peak of inflated expectations" in the hype cycle for new technologies like VR?
In this episode of the a16z Podcast, partners Chris Dixon, Benedict Evans, and Kyle Russell deep dive on all the gear and players in the VR ecosystem; the evolution of content beyond gaming (with a teeny hint at what a VR horror genre might look like); and how the high-end will push the medium forward for all.
The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments and certain publicly traded cryptocurrencies/ digital assets for which the issuer has not provided permission for a16z to disclose publicly) is available at https://a16z.com/investments/.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.
35:5110/10/2016
a16z Podcast: Mastering the Game (with David Oyelowo)
This special episode of the a16z Podcast is based on a Q&A from an early screening we hosted of Disney's Queen of Katwe, now in theaters. The movie -- directed by Mira Nair and based on a book by Tim Crothers -- depicts the true story of Ugandan chess prodigy Phiona Mutesi.
The conversation, hosted by Ben Horowitz, features actor David Oyelowo who (among other roles, previously played Dr. Martin Luther King, Jr. in "Selma") and plays Robert Katende, the engineer-turned-mentor who taught community sports and chess to kids in the slums of Kampala, Uganda.
photo credits: Prentiss Earl lll
21:4130/09/2016
a16z Podcast: From Data Warehouses to Data Lakes
From the silver age of on-prem software companies like SAP and Siebel Systems to the golden age of enterprise software-as-a-service, we're now seeing an explosion of data. All types, all sizes, and all over the place. And much of it is a sort of industrial "data exhaust", where companies aren't quite sure what question to ask of the data but are being bombarded with data due to the variety of data sources available today -- from websites to sensors (and therefore data capture) everywhere. Before there is even a signal in the noise.
So how do you solve a problem like this-Data? Beyond requiring new types of plumbing and integrations, enterprises now expect -- given the age of mobile, web, cloud, and heck, let's add millennials to the mix too -- self service. To be able to ask, get, fit (curve-fit), predict. To take back the enterprise from the patchwork of integration and number of vendors we all have to deal with -- the scope of which most companies in fact are not truly aware of.
It's about the lifecycle of data in the enterprise, argues Snaplogic founder and CEO Gaurav Dhillon in this episode of the a16z Podcast, in conversation with Scott Kupor. It's in fact about the evolution of data overall -- from data warehouses to "data lakes": in stages, from purification (like wrangling data) to bottling (prepping for consumption by data scientists) to making sense of streams and streams of data!
The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments and certain publicly traded cryptocurrencies/ digital assets for which the issuer has not provided permission for a16z to disclose publicly) is available at https://a16z.com/investments/.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.
28:1922/09/2016
a16z Podcast: Welcome to the New Era of Commerce
Just as "social networking" is a bland term that doesn't really capture the layers of what happens underneath (and on top of) social networking platforms, "crowdfunding" is a broader phenomenon than what the term and tools implies. Or so argue the guests on this episode of the a16z Podcast, Tilt co-founder and CEO James Beshara and a16z general partner Jeff Jordan with Sonal Chokshi.
Crowdfunding isn't just about reaching a certain threshold to make something, but it's also about "pre-commerce" or "pretail" -- the next evolution in commerce, which involves the ability to suss out demand before production and sell directly to consumers. Crowdfunding is also about "social commerce" -- the ability to not only build community, but trigger collective action towards some goal. There's even a sort of Dunbar's number equivalent for crowdfunding, the tipping point at which the momentum of this collective action takes over (hint: it involves the magic number of 34%).
Beyond crowdfunding, there are broader themes of economic change and behavior at play here -- whether it's people's tolerance for waiting and buying something before it exists; a new type of scarcity and desire for experiential buying; or makers creating or co-creating things publicly, and even incompletely. All we know is that we're at a watershed moment of sorts -- as evidenced by car manufacturer Tesla's pre-orders for its Model 3, which is not even going to be available for a few years. And yet...!
The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments and certain publicly traded cryptocurrencies/ digital assets for which the issuer has not provided permission for a16z to disclose publicly) is available at https://a16z.com/investments/.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.
27:5718/09/2016
a16z Podcast: Apple and the Case of Invisible But Audible Innovation
"Apple isn't just a tech company; it's a tastemaker." Remember the iconic ads of dancing silhouettes in black, with only the headphone wires visible in white? They were a critical part of the larger buy-Apple innovation narrative. So what happens now when those wires -- an emblematic and enduring image -- are no longer visible, as is the case with the removal of the traditional headphone jack in iPhone 7?
It's part of a broader story, both about how product narratives are shared/told and about how innovation happens: "amazingly", subtly, and sometimes, invisibly. Some innovations, like preventing "battery anxiety" or building a platform ecosystem or even laying the tracks for a train that hasn't arrived yet ("ear computers" or "audible computing"? VR/AR? car?) take time. And a direction we may not be able to anticipate from the outside looking in. ...Or so argue the a16zers on this episode of the a16z Podcast featuring in-house analyst Benedict Evans and board partner Steven Sinofsky with Kyle Russell.
33:4313/09/2016
a16z Podcast: Sleep!
Sleep, productivity, and creatively are intimately linked, for better and for worse. And "we are living under a collective delusion that burnout is the way to succeed," observes Arianna Huffington, author of The Sleep Revolution.
Not only does this affect our health and resilience, she argues, but the data shows that even though we are working longer hours than ever, we lose 11 days of productivity a year per employee due to sickness or diminished capacity. (It also hurts our ability to work in teams.) This isn't just a problem in the tech industry, either. BuzzFeed News senior writer Nitasha Tiku observes that "Any business book that's valorizing or diving into the life of a CEO is going to talk about how much he or she sleeps."
But sleep isn't just a biological act, it's also a psychological (insomnia, anxiety, TV binge-watching?) as well as a socioeconomic one when you consider who gets to sleep (people higher or lower in the workplace hierarchy, other demographic factors?). And where does tech and the tech industry come in here? In this episode of the a16z Podcast, Huffington and Tiku discuss the hard realities of sleep -- everything from tech and culture to labor and the evolving nature of work.
28:1306/09/2016
a16z Podcast: All About Microservices
"Incremental change may be good theory, but in practice you have to have a big enough stick to hit everybody with to make everything move at once". So shares Adrian Cockcroft, who helped lead Netflix's migration from datacenter to the cloud -- and from monolithic to microservices architecture -- when their streaming business (the "stick"!) was exploding.
So how did they -- and how can other companies -- make such big, bet-the-company kind of moves, without getting mired in fanatical internal debates? Does organizational structure need to change, especially if moving from a more product-, than project-based, approach? What happens to security? And finally, what happens to the role of CIOs; what can/should they do?
Most interestingly: How will the entire industry be affected as companies not only adopt, but essentially offer, microservices or narrow cloud APIs? How do the trends of microservices, containers, devops, cloud, as-a-service/ on-demand, serverless -- all moves towards more and more ephemerality -- change the future of computing and even work? Cockcroft (who is now a technology fellow at Battery Ventures) joins this episode of the a16z Podcast, in conversation with Frank Chen and Martin Casado (and Sonal Chokshi) to discuss these shifts and more.
The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments and certain publicly traded cryptocurrencies/ digital assets for which the issuer has not provided permission for a16z to disclose publicly) is available at https://a16z.com/investments/.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.
27:0531/08/2016
a16z Podcast: It's Complicated
For better or worse, most of the computing systems that run much of our lives (whether invisibly or visibly) have become increasingly complex -- they're not fully engineered; they're almost grown. And with that we enter a brave new world of "biological" (as opposed to a more "physics") mindset applied to computing. It's more like evolution, horns and all.
This isn't just abstract or backend-only stuff. Complex system design affects everything from datacenters and SaaS to word processors and cars, touching human lives in very tangible ways. So how do you solve problems in such systems? How do you even begin to understand "the system" in the first place? And is there anything out there yet that lets us test and verify the output of these systems? (Inquiring minds want to know!)
All this and more in this episode of the a16z Podcast, a riff on the theme of "complicated" with complexity scientist Samuel Arbesman and author of the new book Overcomplicated. Also joining the conversation (with Sonal Chokshi) are a16z board partner Steven Sinofsky and research and deal team head Frank Chen.
image: brewbooks / Flickr
18:4430/08/2016
a16z Podcast: Ethereum, App Coins, and Beyond
Bitcoin quickly made its way from a whitepaper to a production network, which is pretty amazing when you think about it. But its scripting/ programming language was initially, intentionally, limited for a few reasons, which meant that building new apps on bitcoin wasn't always easy.
Enter ethereum in 2014 -- a public blockchain platform that moved away from the "Swiss-army knife" approach to a more general protocol approach. This would in turn allow endless (and entirely new) use cases to be built on top of the blockchain, whether smart contracts or "app coins" that allow decentralized crowdfunding and decentralized business models. The results, at first glance, may seem just like a new way of financing a company. But it actually goes much deeper than that: They're really software protocols that are almost replacing centralized companies or what those companies would do. The possibilities are endless...
In this episode of the a16z Podcast, Ethereum inventor and co-creator Vitalik Buterin joins Fred Ehrsam, co-founder of Coinbase (an a16z portfolio company) in conversation with Chris Dixon. The conversation covers everything from the politics of open source (and value of network effects even when those networks split) to the challenges of mainstreaming and scaling tech. And what happens next?
50:2828/08/2016
a16z Podcast: Pricing Free
Now that we know to price and plan early, price high -- especially for category-creating or "pre-chasm" businesses -- how do we handle freemium models?
While free to premium is a great way to get bottoms-up, often viral traction in an enterprise, the challenge is figuring out just where and how to "draw the line" between where free ends and paid begins. Especially for open source, which while not necessarily free/mium, is also affected by these questions. And in that case, how does one balance the developer community and desire to "spread the religion" within and beyond the enterprise?
All this and more in this episode of the a16z Podcast with Andreessen Horowitz general partners (who cover all things infrastructure) Martin Casado and Peter Levine and Go-to-Market and EBC operating head Mark Cranney. The trick, they tells us, involves layering ... like layers in a cake.
32:3219/08/2016
a16z Podcast: Pricing, Pricing, Pricing
"Raise prices." Regular listeners of our podcast have heard this advice more than once. But why is this so key and yet so hard for many technical founders? And how should startups go about raising prices -- or more specifically, creating value -- for their products?
In this episode of the a16z Podcast, former sales VP Mark Cranney (and head of a16z's EBC and go-to-market practice for startups) and former startup founder (and general partner focused on all things infrastructure) Martin Casado talk to managing partner Scott Kupor about pricing for startups ... especially for category-creating businesses. It's not all "pricing, pricing, pricing" though -- there's another important "p" in there too!
36:5414/08/2016
a16z Podcast: The Meaning of Emoji
This podcast is all about emoji. But it's really about how innovation really comes about -- through the tension between standards vs. proprietary moves; the politics of time and place; and the economics of creativity, from making to funding ... Beginning with a project on Kickstarter to crowd-translate Moby Dick entirely into emoji to getting dumplings into emoji form and ending with the Library of Congress and an "emoji-con". So joining us for this conversation are former VP of Data at Kickstarter Fred Benenson (and the man behind 'Emoji Dick') and former New York Times reporter and current Unicode emoji subcommittee member Jennifer 8. Lee (one of the women behind the dumpling emoji).
So yes, this podcast is all about emoji. But it's also about where emoji fits in the taxonomy of social communication -- from emoticons to stickers -- and why this matters, from making emotions machine-readable to being able to add "limbic" visual expression to our world of text. If emoji is a (very limited) language, what tradeoffs do we make for fewer degrees of freedom and greater ambiguity? How exactly does one then translate emoji (let alone translate something into emoji)? How do emoji work, both technically underneath the hood and in the (committee meeting) room where it happens? And finally, what happens as emoji becomes a means of personalized expression?
This a16z Podcast is all about emoji. We only wish it could be in emoji!
38:1403/08/2016
a16z Podcast: Not all Network Effects Are Created Equal
From hardware and hardwires to smartphones and social, technology wants to connect. It's almost a native property of technology and especially software businesses, which is why network effects matter. "It was endemic to these technologies that they wanted to become connected and once connected, they become networks and once networks, they become network effects. Other products like cars or toasters or houses or whatever, aren't natively connected physically or through information sharing," observes James Currier.
But not all network effects are equal -- not only can they be strong or weak, there are many different types depending on the business. Currier, who is the co-founder and managing partner of an accelerator (NFX Guild) that advises and runs a runs a program for all kinds of early-stage companies with network effects, shares their ever-evolving taxonomy for thinking about different types of network effects in this episode of the a16z podcast.
These labels matter. It's not just words, but language that aids understanding -- and the corresponding growth playbook -- that can help build businesses with network effects, especially given the specific challenges they face. And finally, why did some companies with network effects take off but others didn't?
The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments and certain publicly traded cryptocurrencies/ digital assets for which the issuer has not provided permission for a16z to disclose publicly) is available at https://a16z.com/investments/.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.
21:4701/08/2016
a16z Podcast: We Gotta Talk Pokémon Go
Seemingly overnight, a single game -- Pokémon Go -- has taken people by storm. But it's a game that was technically years in the making, building on a legacy of creative intellectual property and technologies such as mobile, geomapping/ geolocation, computer vision, and more. And since "toys are the prelude to serious ideas" [Charles and Ray Eames] or "the next big thing will start out looking like a toy" [Chris Dixon via Clayton Christensen], we want to understand this phenomenon beyond the hype and the hope: Not only is Nintendo stock soaring, but people are sharing amazing stories of massive public play, meeting strangers, saving dogs, fighting crime, helping autistic children.
So what are some of the mechanics behind the game and its viral growth (and is this also a case of network effects)? Is this the first in a new wave of phone-based lightweight augmented reality a.k.a. "light AR"? How will things change as our environments become even more sensorified or more people embrace "camera expression" (as with Snapchat)? And finally, what does an "appified game" vs. a "gamified app" mean for monetization?
In this episode of the a16z Podcast, a16z deal team partners Anu Hariharan and Kyle Russell (in conversation with Sonal Chokshi) are joined by Product Hunt CEO and founder -- and cultural trendwatcher/maker -- Ryan Hoover to discuss all this and more. So how do we tell the difference between a fad and something that's here to stay??
photo: iphonedigital / Flickr
The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments and certain publicly traded cryptocurrencies/ digital assets for which the issuer has not provided permission for a16z to disclose publicly) is available at https://a16z.com/investments/.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.
35:3722/07/2016
a16z Podcast: Getting Network Effects
One of the biggest misconceptions around network effects (which are one of the key dynamics behind many successful and highly defensible software companies) is confusing growth with engagement. So how does one tell the difference between viral growth and network effects? How does one create network effects in different businesses? (Hint: it's not by accident!) How do you know when to hang in there because you see signs of network effects or just drop it and move on to something else? And what are some examples of teasing all of the above apart?
In this episode of the a16z Podcast -- based on an event we hosted and slide deck we released all about network effects -- a16z partners Anu Hariharan and Jeff Jordan (who cover all things marketplaces, consumer, and more) share (in conversation with Sonal Chokshi) their observations, insights, and experiences. Because, why reinvent the, er, flywheel?
48:2615/07/2016
a16z Podcast: On Government as Software Builder, Not Just Buyer
We already know that the government is one of the largest IT buyers, but in many ways it is also an IT builder. Especially for areas where the government is doing something that no one else is doing, like running Medicare and Social Security -- i.e., unique services no other company out there is building software for. That's where the USDS comes in. Now almost two years old, the United States Digital Services is "a startup at the White House" responsible for mission-critical, citizen-facing services like improving Veterans' Affairs healthcare applications and benefit claims appeals, or student loan repayments.
But can one really operate as a startup while embedded in an entity as complex and huge -- remember, each agency would be like a Fortune 500 company -- as government? It may not be move fast and break things, observes Mikey Dickerson, Google engineer-turned-administrator of the USDS (and one of the fixers of the original healthcare.gov), but "There's a world of difference between moving a little slower than you're used to and not moving at all." And it's not like large companies don't have huge, bureaucratic structures either. In fact, argues USDS co-founder and deputy administrator Haley Van Dyck, both government and big companies are going through the same shift right now, one where technology is moving "from what used to be the periphery into the core mission of business".
So what are the similarities and differences between operating in government vs. big companies? How to draw talent from the private sector into the public sector while avoiding adverse selection (hint: through tours of duty)? And finally, what about fixing the procurement process (because "you don't buy software the same way you would buy a battleship")? Dickerson and Van Dyck share their thoughts on these issues, as well as peacetime/wartime tactics, in this episode of the a16z Podcast.
23:4414/07/2016
a16z Podcast: Software Programs the World
"All of a sudden you can program the world" -- it's the continuation of the software eating the world thesis we put out over five years ago, and of the trajectory of past and current technology shifts. So what are those shifts? What tech trends and platforms do we find most interesting on the heels of raising our fifth fund? Are we just building on and extending existing platforms though, or will there be new platforms; and if so, what will they be? Well, distributed systems for one...
This episode of the a16z Podcast covers all things distributed systems -- encompassing cloud and SaaS; A.I., machine learning, deep learning; and quantum computing -- to the role of hardware; future interfaces; and data, big and small. Podcast guests Marc Andreessen and Ben Horowitz (in conversation with Scott Kupor and Sonal Chokshi) also share the one piece of advice from a management and go-to-market perspective that all founders should know. And finally, why simulations matter... and what do we make of our current reality if we are all really living in a simulation as Elon Musk believes?
40:4911/07/2016
a16z Podcast: Beyond One Size Fits All for Startup Employee Options
Do we need a new pay system for the way startup employees are compensated? While many people agree that the current 90-day exercise practice — an outdated relic of when companies used to go public/get liquidity in a much shorter timeframe — is far from ideal, neither are some of the other solutions proposed so far. Because incentives matter, and behavior follows incentives. Which is fine as long as you know all the implications around what you’re incentivizing for and it aligns to what you want as a founder for your company and employees.
So “let’s get it out from under the rug, let’s talk about it, and let’s design a system that works for whatever you want your company to be”, argue a16z partners Ben Horowitz and Scott Kupor in this episode of the a16z Podcast. The discussion goes beyond just the question of a 10-year exercise to other configurations — such as Snapchat’s model and Tesla’s model for timing options, as well as radical experiments like “progressive equity“. What are the tradeoffs of each approach? How does the type of company you’re building (a complex hardware or infrastructure-heavy startup for example) change things? How does the broader environment affect all these considerations (and might plans to create a new long-term stock exchange help)?
Finally, is it fair to treat tenure as a proxy for the actual value a particular employee contributed to building the company? Or to optimize for earlier vs. later employees, particular if the earlier ones de-risked the company and later ones helped scale it? And what do different employees want — more options, more RSUs, cash, more ownership, more stability, more mobility? All this and more in this episode…
32:3701/07/2016
a16z Podcast: When Humanity Meets A.I.
with Fei-Fei Li (@drfeifei), Frank Chen (@withfries2), and Sonal Chokshi (@smc90)
Who has the advantage in artificial intelligence — big companies, startups, or academia? Perhaps all three, especially as they work together when it comes to fields like this. One thing is clear though: A.I. and deep learning is where it’s at. And that’s why this year’s newly anointed Andreessen Horowitz Distinguished Visiting Professor of Computer Science is Fei-Fei Li [who publishes under Li Fei-Fei], associate professor at Stanford University. Bridging entrepreneurs across academia and industry, we began the a16z Professor-in-Residence program just a couple years ago (most recently with Dan Boneh and beginning with Vijay Pande).
Li is the Director of the Stanford Vision Lab, which focuses on connecting computer vision and human vision; is the Director of the Stanford Artificial Intelligence Lab (SAIL), which was founded in the early 1960s; and directs the new SAIL-Toyota Center for AI Research, which brings together researchers in visual computing, machine learning, robotics, human-computer interactions, intelligent systems, decision making, natural language processing, dynamic modeling, and design to develop “human-centered artificial intelligence” for intelligent vehicles. Li also co-created ImageNet, which forms the basis of the Large Scale Visual Recognition Challenge (ILSVRC) that continually demonstrates drastic advances in machine vision accuracy.
So why now for A.I.? Is deep learning “it”… or what comes next? And what happens as A.I. moves from what Li calls its “in vitro phase” to its “in vivo phase”? Beyond ethical considerations — or celebrating only “geekiness” and “nerdiness” — Li argues we need to inject a stronger humanistic thinking element to design and develop algorithms and A.I. that can co-habitate with people and in social (including crowded) spaces. All this and more on this episode of the a16z Podcast.
38:0128/06/2016
a16z Podcast: Fintech Revolution or Evolution?
How far along are we towards the vision of a "cashless, cardless, walletless, frictionless future" for fintech? We're not quite there yet, argued BuzzFeed News technology reporter Charlie Warzel in a recent feature story -- for which he got a microchip implanted in his finger while trying to go cashless for an entire month.
But as revolutionary as the chip tech seems, the reality may be that fintech innovation is much more incremental, evolutionary, and still only disintermediating the physical world than truly doing new things (given what's natively possible with web, cloud, and mobile). Will that change now that Apple Pay is coming to the web? Speaking of, what is the platform and what is the product? Especially given a highly fragmented digital wallet and payments market (Warzel eventually ended up with 64 apps just to get through one month). And where, exactly, are the banks in all this?
The problem, observes Warzel -- who is joined by a16z Partners Alex Rampell and Angela Strange in this episode of the a16z Podcast on all things fintech, payments, wallets, and more -- is that the customers/consumers aren't at the center of any of this. And that's a big deal given the (lack of) trust and expectations for user experience that savvy users will have for all their tech.
45:4222/06/2016
a16z Podcast: An Economics Take on the Sharing Economy
Love the term or hate it, the concept and reality of the "sharing economy" (or "gig economy" and so on) is here to stay. And in fact, argues NYU Stern professor and researcher Arun Sundararajan, it may even reduce the income distribution gap between the haves and have-nots in a way that previous shifts -- like the Industrial Revolution and traditional 20th century institutions -- never did. How?
Because it's a new model for (crowd-based) capitalism -- one where we're increasing the segment of the population that owns the means of production. Or... have we just shifted value from traditional institutions to the platforms instead? Well, let's see what the data tells us. In this episode of the a16z Podcast, Sundararajan (who is also affiliated with NYU's Center for Urban Science+Progress and at NYU's Center for Data Science) shares the latest findings, economics research, and more from his new book on The Sharing Economy: The End of Employment and the Rise of Crowd-Based Capitalism.
We cover the challenges of capturing this shift in GDP (as well as the challenges of GDP and measuring tech progress in general); the challenges of creating a new funding model for the "social safety net of the 21st century workforce"; the challenges of "data darwinism", reputation, and ratings; and finally, how and just who should regulate the sharing economy?
The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments and certain publicly traded cryptocurrencies/ digital assets for which the issuer has not provided permission for a16z to disclose publicly) is available at https://a16z.com/investments/.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.
28:2816/06/2016
a16z Podcast: Apple and the Widgetification of Everything
The world's most valuable company, Apple, made a number of seemingly incremental announcements at its most recent annual developer's conference (WWDC) -- that Apple Pay is coming to the web; that Siri is being opened up to app developers; that iMessage will suggest emoji; and many other things.
Underneath all these little feature tweaks however is a bigger story, argue a16z's Benedict Evans, Frank Chen, and Kyle Russell. It's a story about -ification: the "platformification" of apps available on the Apple operating system (they've turned maps into a platform before even Google has); the "widgetification" of everything (using familiar interfaces to ensure continuity across different contexts); and the AI-ification of everyday services (like recognizing faces in photos and predicting, um, emoji).
Add it all up though and it means Apple is focusing a lot more on A.I., just like other big tech companies such as Google and Facebook (and don't forget Amazon too!). Only Apple is bringing artificial intelligence to the phone -- it now also has a neural network API for instance -- only interestingly, it's focusing on doing so at the device, not cloud level. So what does it all mean?
25:2914/06/2016
a16z Podcast: Move Fast But Don't Break Things (When It Comes to Computational Biology)
The mindset of "move fast and break things", while great for code, isn't exactly great for the human body. So adding computation to biology -- especially in the slow-moving pharmaceutical industry, where drug approval can take years -- brings with it both opportunities (like drastically faster discovery and assessment) and challenges (the need for hard evidence, not just soft-ware). But there's more: We don't want just better outcomes for healthcare. We want better outcomes at a cheaper price.
And that's where machine learning comes in. The benefits of such computation -- i.e., software -- can provide a powerful, frictionless, and far more cost-effective tool for biopharmaceutical research ... but it requires data. So who provides that data? Is it the pharmaceutical companies, or the payers (insurance)? How are organizations incented to overcome intellectual property silos in sharing their data? Especially since it was only relatively recently, Jeff Kindler (the former CEO of the world's largest pharmaceutical company, Pfizer) reminds us in this episode of the a16z Podcast, that the FDA even allowed data to be put in computers vs. on paper.
But there's a reason the self-driving car was pushed out of the software and not the auto industry, argues TwoXAR co-founder and CEO Andrew Radin -- and it has to do with the unique nature of the developer's mindset applied to novel problems. The deterministic nature of Moore's Law -- it's not a matter of if, but when -- plays a role too, observes a16z bio fund general partner Vijay Pande. There are things that big data and simulations will be able to accomplish that a hundred lab experiments on animals can't. Still, the two mindsets will have to merge, so we can move fast ... but without compromising quality, safety, and reliability. That's the big difference between computer science and biology after all.
image: mattza/ Flickr
29:2314/06/2016
a16z Podcast: Not If, But How -- When Technology is Inevitable (with Kevin Kelly)
Technology has always been a force in how we live, work, and play; only now it's accelerating and compounding in unexpected ways. But just because we don't know exactly what form that tech will take (sharing homes on Airbnb or cars with Lyft and Uber for example) doesn't mean that the larger force at play (e.g., sharing) didn't have a certain predictability to it. It was almost an inherent -- and inevitable -- outcome of the very nature of the internet itself. And there are at least 12 such inevitable technological forces, shares author Kevin Kelly in his new book Inevitable.
As we now move from an "internet of information" to an "internet of experiences" -- with virtual and augmented reality, AI-as-a-service, and more -- we need to accept the inevitable. Instead of fighting tech outcomes (things like tracking for example), we need to expect it, accept it, plan for it, and civilize it. It's not just about policy and laws, though (which should follow tech use); it's about new business opportunities (imagine if the music industry had bypassed its DRM phase!), cultural change, and new opportunities for humanity, too.
Especially as the future of work changes. But productivity -- and even some forms of creativity -- is for the robots, argues Kelly in this episode of the a16z Podcast (where he is joined by a16z's Chris Dixon, Kyle Russell, and Sonal Chokshi). The irony is that while technology is inevitable, we humans are best suited for what is uncertain, inefficient, and full of failure. Machines may answer, but we will ask the questions. It's not just what we want, but what technology needs.
41:4107/06/2016
Politics Over Pragmatism
"Anybody who is interested in China, who's developing things in China, who's doing business with China needs to be thinking about the instinct towards politics over pragmatism", argues New Yorker staff writer (and former Beijing resident) Evan Osnos. "It will affect your operations there. It's not the kind of thing where you can be, 'Well, look, we're not interested in politics.'"
Osnos, who also wrote the award-winning book The Age of Ambition: Chasing Fortune, Truth, and Faith in the New China, shares experiences and views on the tension between one of the oldest civilizations in the world and newer story of nation-building (is it, like the buildings being built, structurally sound?); an evolving demographic (where "kids you have no idea how good you have it" may no longer be a hedge against politics); and middle-class Chinese, not just outside or elite, complaints about pollution (especially since "environmentalism has often been the front edge of a deeper change in political consciousness").
And speaking of political consciousness and complaints, what of the Trump phenomenon? In this episode of the a16z Podcast -- continuing our recent tech/policy/innovation D.C. on-the-road trip -- Osnos, who is based in Washington, D.C., shares field observations from Charleston, South Carolina to West Virginia. And from Silicon Valley, where technologists might be able to do something about the largely public health, political, and economic problem of gun violence.
43:1602/06/2016
a16z Podcast: Startups and Pendulum Swings Through Ideas, Time, Fame, and Money
Everything old is new again when it comes to startup ideas and how technology innovation happens. But practically, how does that apply to starting and/or working at startups — especially since the default state of every company is “dying in obscurity”?
In this episode of the a16z Podcast, Marc Andreessen and 21 co-founder Balaji Srinivasan cover everything from deciding what ideas to work on and the optimal type of startups to work at, to the funding environment and pendulum swings of deciding when to IPO. They also discuss the VC “formula” of weighting product vs. market vs. team; the full-stack approach to cracking industries that tech could never enter before; and recent tech trends and news including The DAO, AI, VR/AR and the “Instagrammification of everything”, more.
And where does Andreessen stand on the “moral dilemma” of whether entrepreneurs should drop out of college or not? Would Srinivasan still do a PhD today? People’s early career goals should be about maximizing learning skills and minimizing “personal burn”, they argue. But no matter what, Andreessen believes, smart people — from all industries, not just tech — should build things. It’s also easier to get through startup hard times when there’s an ideological mission motivating you, observes Srinivasan.
This episode is based on a May 2016 conversation that was recorded as part of the Annual Distinguished Speaker Series with Thought Leaders in Technology, hosted by engineering honor society Tau Beta Pi at Stanford University.
photo credit: Ryan Jae/ The Stanford Daily
53:3230/05/2016