Marc Andreessen

Remember, in Mad Men, it's like the members went off and started their own company in the fourth season, third season, fourth season. They actually didn't like each other. They kind of knew they had to come together to start a firm. And that's how a lot of these firms operate. And so they're like these loosely affiliated tribes. And then you get this phenomenon they call you eat what you kill.

Remember, in Mad Men, it's like the members went off and started their own company in the fourth season, third season, fourth season. They actually didn't like each other. They kind of knew they had to come together to start a firm. And that's how a lot of these firms operate. And so they're like these loosely affiliated tribes. And then you get this phenomenon they call you eat what you kill.

Each person wants to make the most of the money off the things that they do and they don't want freeloaders. But it's a partnership and it's a vote to try to change anything. And so it's hard to fire people. And So anyway, it's like private partnership and it's fine for what it is. But then what you see with those is basically they have a hard time sustaining. There's no franchise value.

Each person wants to make the most of the money off the things that they do and they don't want freeloaders. But it's a partnership and it's a vote to try to change anything. And so it's hard to fire people. And So anyway, it's like private partnership and it's fine for what it is. But then what you see with those is basically they have a hard time sustaining. There's no franchise value.

There's no underlying enterprise value. It's not a business. And what you see with those is basically when the original partners at a firm like that are ready to retire or do something different, they hand it off to a new generation. Most of the time, the new generation can't keep it going. And most firms in that model, I think now are kind of phasing out for that reason.

There's no underlying enterprise value. It's not a business. And what you see with those is basically when the original partners at a firm like that are ready to retire or do something different, they hand it off to a new generation. Most of the time, the new generation can't keep it going. And most firms in that model, I think now are kind of phasing out for that reason.

But even if they can keep it going, there's no underlying asset value. That next generation is just going to have to hand it off to the third generation. It's probably going to fail on the third generation. And then it's going to be on Wikipedia someday. It's like, yeah, that firm existed at one point and then it went away and other firms took over and chips passing in the night.

But even if they can keep it going, there's no underlying asset value. That next generation is just going to have to hand it off to the third generation. It's probably going to fail on the third generation. And then it's going to be on Wikipedia someday. It's like, yeah, that firm existed at one point and then it went away and other firms took over and chips passing in the night.

So that's the standard way to do it. And by the way, if trained as a classical investor, you've been trained how to do the investment part, but you've never been trained on business building to your point. And you've never built a business. And so it's not natural for you to build a business. You don't have the skill set or experience. And so you just don't do it.

So that's the standard way to do it. And by the way, if trained as a classical investor, you've been trained how to do the investment part, but you've never been trained on business building to your point. And you've never built a business. And so it's not natural for you to build a business. You don't have the skill set or experience. And so you just don't do it.

And many investors have made tons of money as investors running that model for a long time. So it can work really well. The other way is to build a company, build a business, build something with enduring franchise value. And there you alluded to firms like Blackstone and KKR, where they're huge public companies, Apollo, these huge firms.

And many investors have made tons of money as investors running that model for a long time. So it can work really well. The other way is to build a company, build a business, build something with enduring franchise value. And there you alluded to firms like Blackstone and KKR, where they're huge public companies, Apollo, these huge firms.

You probably know the original banks actually were all private partnerships. Goldman Sachs and JP Morgan 100 years ago looked like little venture capital firms much more than they look like what they look like today. But then their leaders over time turned them into these huge franchises, and they're also big public companies. So that's the other thing to do is kind of build a franchise.

You probably know the original banks actually were all private partnerships. Goldman Sachs and JP Morgan 100 years ago looked like little venture capital firms much more than they look like what they look like today. But then their leaders over time turned them into these huge franchises, and they're also big public companies. So that's the other thing to do is kind of build a franchise.

Now, to do that, you need a theory as to why a franchise should exist. You need a conceptual theory as to why it makes sense to do that. And then, yeah, you need the business skills. And at that point, you're running a business and it's like running any other business, which is like, OK, I've got a company. It's got an operating model. It's got an operational tempo.

Now, to do that, you need a theory as to why a franchise should exist. You need a conceptual theory as to why it makes sense to do that. And then, yeah, you need the business skills. And at that point, you're running a business and it's like running any other business, which is like, OK, I've got a company. It's got an operating model. It's got an operational tempo.

It's got management capabilities. It has staff. It has multiple layers. It has training programs. It has performance management. It professionalizes its operations. It has division of labor internally with specialization.

It's got management capabilities. It has staff. It has multiple layers. It has training programs. It has performance management. It professionalizes its operations. It has division of labor internally with specialization.

And then you think in terms of scaling and then you think in terms of over time, you think underlying asset value where the thing has a value that's not just the people who happen to be there at the moment. It's not like we're like chomping at the bit to take it public or whatever, but a big part of what we've been trying to do is build something that has that kind of enduring aspect to it.

And then you think in terms of scaling and then you think in terms of over time, you think underlying asset value where the thing has a value that's not just the people who happen to be there at the moment. It's not like we're like chomping at the bit to take it public or whatever, but a big part of what we've been trying to do is build something that has that kind of enduring aspect to it.