Thread by @Melt_Dem

1/ so, @a16z is finally becoming an investment bank and charging for services.

most people who think VC is a lazy job, being an investor is actually a TON of work, and including:
- helping companies raise capital
- advising
- negotiating transactions

forbes.com/sites/alexkonr…

2/ with this shift, the firm and its 150 employees no longer have to wait for liquidity events to generate cash flow. they can:

- charge companies advisory fees
- buy and sell secondaries
- get paid 5 - 10% for M&A (i.e. $130M @coinbase buying @earndotcom deal)

3/ most importantly, they can create an inside market for the holdings of their portfolio companies and digitize their shares

@UnionSquareNY pioneered this model in 2017, "tokenizing" the networks of their companies ie @blockstack @kik @numerai

expect more of this 🔥

4/ as i like to say, VC is dead

just kidding! VC is going through a major evolution, with the rise of the platform / portfolio manager function, the growth of research / incubation, and the realization that fees aren't just for the bankers...

5/ based on my experience @CoinSharesCo, this transition has been in the works for quite some time.

as IPOs continue to underperform, a new market is being created for private company stock. it's pretty amazing to experience, and the game is just getting started...