Thread by @1ndus

Finally, read how @a16z is blowing up the VC model by @alexrkonrad.

Here's what I think is 'coming soon' from them.

PS> If they are not doing any of what I think they are doing then its (meh) incremental change and not exponential 😀😀

forbes.com/sites/alexkonr…

1/5 Each investment advisor (let's call them 'Venture Advisor or VA') would run a full-stack, multi-stage boutique fund-like structure, but draw from a massive dry powder of a single balance sheet.

Each VA would be like a single GP fund except for unlimited cash.

2/6 These VAs would potentially fund competing startups. Ex: Seed in Slack and then Series A in Hipchat. Another advisor would then invest in an index fund that has both of these two investments. All of them drawing from the same “bank account.”

3/6 The VA will act like my Chase branch manager—provide diff types of money, advise, customers, along with a toaster (+ coffee/bagel). @a16z does this with their agency-oriented approach, recruiting, marketing, briefing centers, etc. Expect this to get more personalized.

4/6 A VA would source a deal (a la McKinsey) and then cut it across specialists based on who can do consulting, product, further-fund raising, recruiting, marketing and divide the "deal". Specialization is not new for a16z, but expect this getting more pronounced.

5/6 There’s no single IC (Investment Committee) to reject a startup. This stabs right in the middle of conventional VC. Got rejected by a VA at a16z, someone else cd pick it up (even before the founder finds out?)

This I think is the epitome of @pmarca's disagreeable-ness thesis

6/6 A major cause of rejection is that a VC likes the investment but no partner can do the deal as a partner cannot do >12 boards and the fund cannot do 20/year.

The 150 IAs cd be on your board and potential 150 individual deal-makers to sign term-sheets.

PS/6 Net, net: Interesting times to be an entrepreneur. So much money. @a16z is doing what banking does to moving money and what Hollywood does in managing talent.