$635M Exit → $600M Fund: David Ulevitch on Building a16z’s Hottest New Fund

Ulevitch analyzes America's supply chain dependence on China, particularly in manufacturing and shipbuilding. He argues that the US should focus on technological superiority (better missiles) rather than matching China's production capacity (more ships), emphasizing deterrence over parity as the winning strategy.

• •US is extremely vulnerable to supply chain disruption if China cuts off access, though mutual economic dependence creates careful balance
• •China's manufacturing capabilities in Shenzhen demonstrate advanced robotics and defense production far ahead of US
• •Strategic approach: develop superior weapons systems (missiles that can destroy 100 ships) rather than matching production volume
• •Focus on American ingenuity and deterrence capabilities rather than trying to match China's manufacturing scale

Discussion of investable wedges for US founders in manufacturing transformation, robotics automation, and critical materials. Ulevitch highlights opportunities in motors, metalwork, minerals (lithium, copper, steel), and lumber production where software-minded founders are entering legacy industries.

• •Robotics revolution coming to US manufacturing - lights-out factories similar to China's capabilities
• •Critical shortage in steel smelters, lumber production, and mineral processing infrastructure
• •Software founders applying advanced technology mindset to legacy categories like lumber milling
• •The Lumber Manufactory example: transforming wood production for increased housing construction needs

Comprehensive overview of a16z's energy portfolio across generation, transmission, and storage. Features Radiant Nuclear (shipping container reactors), Base Energy (grid resiliency in Texas), and ExoWatt (solar thermal batteries at grid scale).

• •Radiant Nuclear: First fueled nuclear reactor of new design in 50+ years, fits in shipping container, provides 5 years clean energy
• •Base Energy: Founded by Zach Dell (Thrive) and Justin Lopez (Anduril), focused on Texas grid resiliency and power curve smoothing
• •ExoWatt: Using solar and thermal energy to create grid-scale and industrial-scale battery systems
• •Energy framework: generation, transmission, and storage as three critical investment buckets

Overview of defense investments including Anduril (a16z's largest cash position), Saronic (unmanned surface vessels), and Castellian (hypersonic missiles). Emphasizes how low-cost, high-capability missiles can counter China's shipbuilding advantage.

• •Anduril: a16z has more cash invested than any other investor, sets bar on talent and execution speed
• •Saronic: Building unmanned surface vessels with fast execution and strong CEO
• •Castellian: Developing next-generation hypersonic missiles at scale and low cost to counter naval threats
• •Strategic focus: affordable, hard-to-shoot-down missiles as force multiplier against larger adversary fleets

Portfolio companies in public safety (Flock Safety, Skydio, Long Eye) and space (Apex, Northwood) focused on making policing more objective and improving satellite infrastructure. Skydio's drone-first response can save lives by providing situational awareness before officers arrive.

• •Skydio: Drone-first response provides real-time situational awareness, differentiating actual threats from false alarms
• •Flock Safety and Long Eye: Reducing crime and making policing more objective through technology
• •Apex Space: Building satellite buses for next-generation space infrastructure
• •Northwood: Improving ground station communications for satellite networks

Deep dive into Anduril's marketing strategy of never shipping renders or fake videos. The 'Don't Work at Anduril' campaign, inspired by Netflix's approach, attracted massive talent by being authentic about demanding work culture while emphasizing mission-driven purpose.

• •Palmer Luckey's rule: 'We will never ship renders' - all explosions and demos in videos are real, not special effects
• •Jeff Miller (CMO from Snap) executes marketing philosophy that comes from founders
• •Don't Work at Anduril campaign: Listed all reasons NOT to work there (no nap pods, long hours, travel to difficult locations)
• •Campaign drove massive application increases by being authentic about culture and attracting mission-driven talent
• •Marketing serves multiple purposes: public support, policymaker engagement, talent attraction, and demonstrating transparency

Ulevitch shares lessons from his OpenDNS journey and Cisco experience about what drives investment decisions. The critical factors are magnetic talent attraction and capital raising ability, not just ideas. He emphasizes the importance of proper reference checks and spending 30% of time recruiting.

• •Best companies magnetically attract top talent - people love working for Brian Schimpf, Palmer Luckey, Matt Grimm
• •Capital intensity of American Dynamism companies requires ability to attract funding from multiple sources
• •OpenDNS pivot from consumer to enterprise required complete team rebuild - different skills needed
• •Proper reference checking is more important than hire slow/fire fast - look for 'would quit current job to work for this person again' responses
• •Founders should spend 30% of time recruiting and always maintain talent pipeline

Insights on selling to government customers learned at Cisco. Government sales are strategic, not transactional - procurement officers bet their careers on startup solutions. Requires deep, multi-year relationships for complex $10M+ deals.

• •Government customers betting their careers when selecting defense startup solutions
• •Sales processes are strategic partnerships, not transactional - work with same people for years
• •Complex deals often $10M+ requiring deep relationship building
• •Lesson from running large Cisco cybersecurity division applies directly to American Dynamism companies

Ulevitch describes the positive momentum in American Dynamism with growing talent pools from SpaceX, Tesla, Palantir alumni. Highlights upcoming third annual AD Summit in DC, Radiant Nuclear's reactor milestone, and the precipice of a robotics transformation.

• •Flywheel effect: more talent entering categories, more founders, more capital, more customer openness to startups
• •Alumni networks from SpaceX, Tesla, Palantir creating experienced talent pool for new companies
• •Third annual American Dynamism Summit in DC tied to America's 250th birthday celebration
• •Radiant Nuclear potentially fueling first new-design reactor in 50+ years within next 12 months
• •Portfolio companies hitting inflection points with products reaching customers across defense, energy, and robotics