Slides for case study on a16z Andreessen Horowits Venture Capital for COPPEAD Masters Class 2015.

1. ALAN MOTA
ANDRÉ CYTRYN
CAROLE LEQUIN
DIANE DEVEDEUX
RICARDO BEREZINBUSINESS MODELING - COPPEAD/UFRJ
a16z

2. EXECUTIVE SUMMARY
▸ Story of a16z and how did they start;
▸ What is the business model and how it
differentiates with current models;
▸ Case analysis;
▸ How they fit entrepreneurs in their values
as VC’s;
▸ Current and future market analysis;
▸ Suggestions.

3. A LITTLE STORY
THE COMPANY
▸ American Venture capital firm created in 2009 by Mr. Marc L. Andreessen and
Mr. Benjamin A. Horowitz;
▸ Entrepreneurial background;
▸ Specialised in seed investment, start-ups in the social media and technology
business.
“A TECHNOLOGY STARTUP IS ALL ABOUT THE ENTREPRENEURIAL TEAM AND THEIR VISION. OUR
JOB AS VENTURE CAPITALISTS IS PRIMARILY TO SUPPORT ENTREPRENEURS BY HELPING THEM
BUILD GREAT COMPANIES AROUND THEIR IDEAS”
Ben Horowitz

4. A LITTLE STORY
THE IDEA
▸ It’s not (just) about money;
▸ A team, a network, instead of an
artisan, a “jack-of-all trades”;
▸ GPs: smaller salary, big capital gains;
▸ Scalable efforts (not to serve as a
crutch);
“WE’D HEARD LOTS OF ENTREPRENEURS TELL HORROR STORIES ABOUT THEIR
VCS. SO WE SET OUT TO CREATE A FIRM WE WOULD HAVE WANTED TO WORK WITH”
Marc Andreessen
▸ Trust and respect;
▸ “Founders make the best CEOs”;
▸ “Software is eating the world”.

5. SOURCE, PICK AND WIN
BUSINESS MODEL
▸ 3% of VCs generate
95% of the returns;
▸ Increasing number
of private funding;
▸ Strength rather than
lack of weakness.

6. LOOK INSIDE AND OUTSIDE
SWOT ANALYSIS
STRENGHTS:
‣ SKILLED AND SPECIALISED WORKFORCE
‣ BARRIERS ON ENTRY MARKET
‣ HIGH GROWTH RATE, PROFITABILITY AND REVENUE
‣ ATTRACT INVESTORS AND INSPIRE TRUST
‣ EXPERIENCE DUE TO BACKGROUND OF FOUNDERS AND GPS
WEAKNESSES:
‣ TAXES AND COSTS ARE HIGH
‣ COMPETITIVE MARKET
‣ CONCENTRATED MARKET
‣ RARE OPPORTUNITIES
‣ LONG TERM INVESTMENTS
OPPORTUNITIES:
‣ GROWING MARKET = GROWING DEMAND
‣ NEW MARKETS (SECTOR AND GEOGRAPHIC)
‣ ACQUISITIONS
THREATS:
‣ RISKY BUSINESS
‣ STRONG COMPETITION
‣ “COPYCATS”
‣ INCREASING COSTS

7. WHAT DO THEY FOCUS ON?
ENTREPRENEUR
▸ Looking for brilliant and
courageous entrepreneur with
or without degree;
▸ because college dropouts
combine courage, brilliance and
an idea good enough to make a
smart person walk away from
guaranteed success.

8. SOFTWARE IS EATING THE WORLD
INVESTMENTS
Are they all about Internet? Unorthodox
investments include:
‣ Soylent (meal replacement beverage)
‣ Airware (commercial drone
information platform)
‣ Oculus (VR hardware)
‣ Jawbone (mobile accessories)
‣ Julep (beauty products)
‣ Transferwise (money transfer)
‣ Opengov (business intelligence for
the public sector)

9. HOW TO DIFFERENTIATE?
MARKET
CLOUD
COMPUTING
EXISTING
DATA ANALYTICS ROBOTICS
SOCIAL
NETWORKS
ONLINE
RETAILING
GAMING
VR
COSMETICS
NUTRITION
SOFTWARE &
HARDWARE
VIRTUAL
CURRENCY
SYNTHETIC
FOODS
NON
EXISTING
…YET
WHO KNOWS?
QUANTUM
COMPUTING
BIOHACKING
MEDICINE
SPACE
EXPLORATION

10. WHAT NOW?
SUGGESTIONS
▸ Team up with existing VC firms in key markets, as if AH was a “sponsor" of
these firms. In other words: AH gets access to their work and gives them extra
money for projects they like the most. Key markets: China, UK, Israel, Brazil,
Germany, Russia.
▸ Open a sort of task force within key issues that might be overlooked by the
firm, because of its focus on internet/software. Key issues: healthcare and
privacy/data security.

11. QUESTIONS?