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Marc Andreessen and Ben Horowitz sit down with Margit Wennmachers—the woman who turned two unknown entrepreneurs with $300 million and zero investing track record into the most talked-about firm in ve...
Marc Andreessen and Ben Horowitz reveal how they built a16z from zero to legendary status by breaking every VC rule. Margit Wennmachers, their head of marketing since day one, explains how they weaponized transparency and aggressive marketing when the industry operated on secrecy. They discuss the Fortune cover controversy that triggered competitor panic, how 'Software is Eating the World' was written in one draft, and why authentic founder personalities now determine company success in an era where traditional marketing has been completely disrupted.
Margit recounts meeting Ben and Marc at the Creamery restaurant in 2009 during the financial crisis. After a grueling interview about her client selection process, she was later surprised to learn they were raising $300M for a VC firm despite having zero investing track record. Marc's response to her skepticism: 'Let's assume success, shall we?'
Ben and Marc describe the hostile reception from established VCs who said they'd never raise the fund and should give VCs half the carry. The top five firms never changed, operated like a cartel, and viewed deal flow as a 'sushi boat restaurant' where startups just drift by. Two formative experiences shaped their competitive approach: an LP who left to talk to NFL players about money management, and a VC who treated LPs 'like mushrooms' - kept in a box under the bed for two years.
The historical model for a16z's platform was CAA (Creative Artists Agency), not traditional VC incubators. Michael Ovitz's strategy was a closely guarded secret that required multiple conversations to extract. This unorthodox board member choice proved genius, leading to valuable connections and strategic thinking that differentiated them from the 50% equity-taking incubators of the late 90s.
Margit got Ben on the cover of Fortune magazine - something that seemed impossible for a new VC with no portfolio companies. The established VCs 'went bananas,' calling every LP to complain about the egomaniacs who put themselves on magazine covers instead of entrepreneurs. This moment crystallized that a16z wouldn't just avoid the cartel - they'd actively oppose it. The key insight: aim all communications at entrepreneurs, not LPs.
In an industry built on secrecy, simply talking openly about VC and company building became a massive differentiator. Entrepreneurs told them 'I feel like I know you guys' before ever meeting. The firm's blog posts on timeless topics like 'Good Product Manager, Bad Product Manager' became more valuable than bubble speculation. LPs not only read everything but called for advice on managing their own organizations.
Marc's legendary essay originated from an offhand comment during a meeting with The Economist's Martin Giles. Margit recognized its importance immediately and placed it with the Wall Street Journal. Marc wrote exactly one draft. Years later, 'It's Time to Build' was rejected by every publication during the pandemic - times had changed and traditional media had lost its gatekeeping power.
Ben's book served multiple strategic purposes: equalizing brand recognition between partners, setting a high bar for all GPs to be public intellectuals, and providing substantive value to entrepreneurs. The key insight: books must stand the test of time and contain real ideas, not just blog-post-length concepts stretched thin. Grace's marketing worked because the book was genuinely good - you can't market your way past a bad product.
A profound observation about organizational inertia: companies where founders are gone almost never change anything, even when facing existential threats. Many powerful VC firms from 2009 are 'frozen in time' like 1959 Havana. The auto industry couldn't respond to Tesla despite years of warning. German car companies are now laying off massive numbers while genius engineers choose to work for Elon, not 'suave, well-manicured executives.'
Marketing has fundamentally shifted from products to people. Companies now market the founder, not just the product - Tesla is Elon, Palantir is Alex. But being accomplished doesn't make you interesting, creating an unfair dynamic. The challenge: founders must become mini-celebrities while maintaining organizational discipline and not acting like actual celebrities. Mark Zuckerberg's transformation from over-trained politician to authentic self exemplifies this shift.
Marc introduces the 'GPT test': if what someone says is indistinguishable from ChatGPT output, they won't make it. TED Talks represent the old world - saccharine, manufactured, morality-driven 'very special episodes.' Tyler Cowen's insight: very few people have something interesting to say every day, yet that's now the bar. The media has flipped from beginning to end - they now comment on what's already been discussed everywhere else.
The transition to personality-driven companies is still accelerating. Every successful future company will need someone who can authentically communicate - ideally the CEO, possibly a co-founder. In competitive situations, not having an 'Alex Karp' while your competitor does is devastating. The shift leads to a more honest, transparent, less sanitized world - uncomfortable for those used to 'Disneyland' but reflective of reality.
The Secret Marketing Strategy That Built a16z: From Zero to Legendary VC Firm
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