🍿 This Media Company Monetizes through Venture Capital...

Welcome

Whats up! Welcome to Wouters blog. It’s Wednesday! That means i’m going to be covering:]

• 💰 A Media Business Breakdown

Today we’re covering A16z which is one of the most renown Venture Capitalist firms. Started in '09 by Marc Andreessen and Ben Horrowits two Silicon Valley legends.

But they're using a playbook that is incredibly interesting. They're a Media Company that monetizes through VC.

With just around $35BN in assets under management, it's interesting to take a look at the playbook used, which is exactly what i’m doing today.

P.s, I’m building this newsletter in public! If you want to see the behind the scenes, follow me on twitter..

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BREAKDOWN
Why it matters

The reason this approach matters is because it f*cking works.

Content as Influence:

By effectively functioning as a media business. A16z produces the narratives and can attract startups to them by increasing their surface area. The content-driven approach builds up the brand creating a favorable ecosystem for investments.

Just like how a large value driver for YC is being in contact with other YC companies. A16z can attract more favorable investments due to better deal flow due to their reach.

Network Effects and Community Building:

This creates a network effect. This strengthens A16z influence. It also lets them tap into a bigger pool of talent, investments etc.

A16z as a Media Company
Millions of Visits, Thousands of impressions

A16z really cranked up their media efforts when Benedict Evans joined in 2014. He described A16z as:

A16z eventually launching a standalone media company in 2021 called Future, Future is supposed to influence how people think about the future and of a16z as a part of it.

A16z took a unique strategy in using its management fees to hire staff with skills in high demand at startups. Like user experience, interface designers etc. Thus helping attract these companies into the a16z orbit.

The marketing “shapes the narrative” on the impact and future potential of digital technology, by Peter Sims. He is a former Summit Partners employee, which is another top tier VC firm.

So you can see that a16z positions themselves carefully, as thought leaders in this space. That's 100% the reason they created Future.

Marc Andreessen even said that the goal for Future (and by extension, the media a16z makes) is to create a:

There are many key players shaping the a16z narrative. One key player is Margit Wennmachers .

Who is the head of marketing for a16z, she joined the firm in 2010.

She also had a quote on PR that i found fascinating. I thought PR was largely bullshit, but this quote changed my thoughts:

Other people who a16z hired to lead their media efforts are fan favorites like Steph Smith etc.

The company publishes with some frequency, they've got over 370k followers on linkedin. get over 1m+ impressions on their site per month and own 7 podcasts!

TAKEAWAYS
3 Key Learnings

This is all well and dandy, but what can we learn from it?

Innovative Talent and Resource Utilization: 

By investing in media, A16z is able to tap into high demand skills. Not only helping their own operations but definitely making them more attractive to startups seeking those skills. This approach highlights the importance of strategically investing in talent and resources that align with and enhance the brand's value offering.

By creating your brand, as i hope to do with this newsletter. You make it easier to hire because people who you need will be attracted to your work (hopefully).

Effective Communication Strategy: Creating content and building a proactive communication strategy to shape industry ideas and perceptions. Helps A16z determine the way they’re perceived, they’re in control of the narrative!

So by playing offense and actively shaping the narrative around technology and the future, they not only defend their brand but also establish a clear and influential voice in the market — smart

Strategic Positioning and Thought Leadership: This is kinda a piggy back of the previous one. But. Positioning yourself as a thought leader in the industry is a key strategy.

A16z's careful branding not only shapes public perception but also attracts like-minded individuals and organizations to the brand. This can’t be emphasized enough!

That’s all for today folks!

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BEFORE YOU GO!

Don’t forget

Don’t forget to come back for Fridays newsletter where I will cover:

• The weekly newsletter media breakdown (hint it’s about AI)