Andreessen Horowitz (a16z)

The firm operates a classic venture capital fund model. It establishes sector- and stage-specific closed-end funds (including general technology, growth, bio/health and crypto/web3 vehicles) and raises committed capital from limited partners such as institutions and wealthy individuals. On this committed capital, the firm charges an annual management fee, commonly around 2–2.5 percent in early years, which funds its operating platform including investment and operating teams. It then deploys the capital into equity and, for crypto vehicles, token investments in portfolio companies.

Value is created by sourcing and selecting high-growth companies, supporting them with in-house operating resources, and realising returns on exits (IPOs, acquisitions, token liquidity events). The firm receives carried interest, a share of the profits above a hurdle rate, when investments are realised at a gain. Its content, research and podcast activities function as brand, ecosystem and dealflow infrastructure rather than direct revenue lines, but they support the firm’s ability to attract both limited partners and founders.

Andreessen Horowitz (a16z) is a United States–based private venture capital firm founded in 2009 by Marc Andreessen and Ben Horowitz. The firm raises closed-end investment funds from limited partners and deploys capital into technology and deep tech companies across sectors including consumer, enterprise, fintech, bio/health and crypto/web3. It also operates a media presence through podcasts and content that supports its brand and dealflow.

The company generates revenue primarily through management fees charged on committed capital and carried interest on realised investment gains, including equity and token holdings in portfolio companies. Its direct paying customers are institutional and high-net-worth limited partners who commit capital to its funds; portfolio founders and companies are supported but do not pay the firm in the same way. Crypto- and web3-focused funds add additional upside via token allocations alongside traditional venture returns.