The VC industry has transformed from a small, generalist-driven field to a complex ecosystem with large, multi-stage platforms and specialized niche funds. The private markets have grown to rival public markets in fundraising capacity, and the increasing complexity of technology requires deep, vertical-specific expertise.
a16z was built on the premise of being a superior service provider to founders. This was operationalized through a "platform" model offering services like marketing and recruiting, and a centralized control structure, which broke from the traditional shared-control partnership model.
Marc Andreessen's 2011 thesis argued that software would permeate every industry, dramatically increasing the number of potential $100M+ revenue tech companies from ~15 per year to hundreds. This insight provided the strategic justification for a much larger and more ambitious approach to venture capital.
Despite data and technology, the core of venture capital remains a human-centric, "taste"-driven business. It relies on the psychological analysis of founders, navigating uncertainty, and providing counsel, much like A&R in music or movie production, with even the best VCs missing most of the great companies.
Keep pulling the thread on Ben Horowitz & Marc Andreessen.