Welcome!

Industrial IoT Authors: William Schmarzo, Elizabeth White, Stackify Blog, Yeshim Deniz, SmartBear Blog

Related Topics: Symbian, Cognitive Computing , Machine Learning , Agile Computing, @CloudExpo

Symbian: Article

Andreessen Turns VC

Sets up Andreessen Horowitz wih fellow Netscape veteran Ben Horowitz

Netscape wunderkind Marc Andreessen, now about to turn a demographically middle-aged 38, has officially turned venture capitalist, a counter-culture move since the dot.com bust trashed the sport.

Andreessen and fellow Netscape veteran Ben Horowitz have raised a relatively modest $300 million – which seems to be considered a goodly sum in these dire times – and have set up Andreessen Horowitz as they’ve been publicly threatening to do since February.

Andreessen told the Financial Times they could have raised $500 million or $600 million but felt a twosome couldn’t handle that kind of money. They reportedly only intended to raise $250 million.

Andreessen and Horowitz have been playing angel investors for about five years now and have spread their personal wealth around some 40-odd start-up including Twitter, Digg, Ning, Rightscale and Linkin, some of them famous names that have yet to produce a return for their backers. Andreessen and Horowitz profess to take a long-term approach.

Andreessen Horowitz is proposing to be an all-purpose VC, willing to listen to any kind of deal that gets air time with it: founder shares, public stock, leveraged buyouts. They intend to make themselves available so they can keep their fingers on technology’s pulse.

The pair prefers Silicon Valley start-ups, believing that there’s a “special magic” in the geography that, say, the BRIC countries lack, and prefer firms concentrating on consumer Internet, cloud computing, software-as-a-service, mobile software and services, software-powered consumer electronics, infrastructure and applications software, networking, storage, database and other unidentified back-end systems.

It’s not interested in clean, green, energy, transportation, biotech, drug design, medical devices, nanotech, movie production companies, consumer retail, electric cars, rocket ships or space elevators, Andreessen says on his blog. Neither he nor Horowitz knows anything about that stuff.

Andreessen Horowitz says it stands ready to put anywhere from $50,000 to $50 million in the provocative start-up. It intends to back 60-80 seed-level fledglings (while valuations are low) as well as more venture-stage and late-stage companies. They’re looking for the 10 or 15 firms that will hit $100 million in revenue like Aliph, the Bluetooth headset maker they already have money in.

Andreessen Horowitz will only have two general partners but promises to build a professional staff. With as many investments as they have and intend to have, Andreessen and Horowitz themselves will be spread pretty thin. Raw start-ups can forget about them being on their board; as a matter of fact Andreessen Horowitz would advise them not to have a board at all. And they fancy founders as CEOs, hoping they grow into the role.

Horowitz hasn’t given up his day job as an HP VP and general manager of its business technology software optimization.

Andreessen has been telling the press that he expects half the VC establishment in Silicon Valley to crater and take their investments with them. “It’s not just that there are 400 extra venture funds. It’s that they are funding 4,000 extra companies, none of which will ever amount to something,” he told Reuters.

Netscape and Opsware, two firms connected with Andreessen and Horowitz, sold for a nominal $12.6 billion, more by accident that anything else.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...