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The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

20VC: a16z's $15BN Fundraise with Alex Rampell | The Best Companies Have Hostages Not Customers | The Best Founders Materialise Capital, Customers and Labour | Mid-Sized Funds with Die and The Future of Venture Capital

12 Jan 2026

Transcription

Chapter 1: How did a16z raise $15 billion for their latest funds?

0.031 - 15.633 Alex Rampell

I think you want to invest in people that can materialize labor, capital, and customers. The way that I do it, just kind of to be pithy about it, is like we either want to buy any percent, any percent of something that is absolutely working or high ownership of something that could work. The best companies have hostages, not customers.

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16.034 - 29.956 Alex Rampell

So probably of the unicorn class, I would bet that maybe 5% will ever be able to go public. We were buying out of the money call options and we hope they expire in the money. We don't necessarily think you could take it as a given that a small fund will outperform a large fund.

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30.337 - 40.475 Harry Stebbings

$15 billion. That is how much Andreessen Horowitz just raised. It is over 20% of the entire pool of capital raised by venture firms.

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Chapter 2: What two groups of funds will dominate the next decade in VC?

40.696 - 58.735 Harry Stebbings

Today, I'm joined by Alex Rampell. general partner at Andreessen, where he leads their $1.7 billion apps fund. He's also led deals in Mercury, Plaid, Opendoor, and many more. And this is one of the best shows that I've done in a long, long time. I actually think to one of Alex's statements every single day.

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Chapter 3: What three key abilities do the best founders possess?

58.896 - 77.1 Harry Stebbings

It's taught me so much. And it's very simple. Will the startup acquire distribution before the incumbent acquires innovation? I have Alex to thank for that, and it always sticks with me. But before we dive into the show today, over 80% of Fortune 100 companies are running their businesses with Airtable.

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Chapter 4: Why do the best companies have hostages instead of customers?

77.3 - 101.782 Harry Stebbings

Airtable combines AI with the scale of an award-winning, infinitely flexible no-code system, a platform where you can see all of your data in one place and use it to make really big picture decisions. Think of it like mission control for your company. Airtable goes beyond organization and automating repetitive tasks. It lets you use your data to inform strategy, monitor progress, and take action.

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102.002 - 124.144 Harry Stebbings

Every cell is capable of performing hundreds of AI-powered tasks like web research or localization. and using those results to inform and update hundreds or thousands of other sales and workflows in real time. Unlock the true scale of your workflows at www.airtable.com forward slash 20 VC. Airtable, the infrastructure of innovation.

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124.365 - 137.874 Harry Stebbings

And just like Airtable organizes your workflow data, MetaView organizes your conversation insights. This episode is brought to you by MetaView. Who says hiring has to be fair? Every founder, VC and exec I speak with knows this.

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Chapter 5: What are the two types of deals to pursue in venture capital?

138.235 - 157.654 Harry Stebbings

Your ability to hire is the biggest constraint on your company's growth. But recruiting is slow, it's subjective and only getting more competitive. And that's why teams like Eleven Labs, Brex, Replit, Deal, and 5,000 other organizations use MetaView, the AI company giving high-performance teams a real unfair advantage in hiring.

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157.875 - 174.504 Harry Stebbings

MetaView's built a suite of AI agents that behave like recruiting co-workers. They proactively find candidates, they take interview notes automatically, and they help you surface the best candidates in process. For the first time, AI handles the recruiting toil and gives you a single source of truth.

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174.705 - 182.658 Harry Stebbings

That means hours saved per hire and a team focused on what matters most, winning the right to candidates as fast as possible.

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Chapter 6: Why is founder/capital fit crucial for success?

182.858 - 188.528 Harry Stebbings

Don't let your competitors out hire you. MetaView customers close roles 30% faster.

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Chapter 7: What are the dangers of multiple successive funding rounds?

188.708 - 211.735 Harry Stebbings

Try MetaView today and get a free month of sourcing at metaview.ai forward slash 20VC. After MetaView captures what was said, Turing helps you build with the people who can deliver after it. Frontier Labs keep facing the same limitation. Models perform well on benchmarks, but fall short once they enter real coding tasks, real tools, and real workflows.

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212.015 - 229.757 Harry Stebbings

That disconnect between synthetic evaluation and actual system behavior is now a core blocker for agentic models. That's why Nvidia, Anthropic, Salesforce, Gemini, and other leading labs partner with Turing. Turing is the research accelerator focused on post-training reliability.

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229.837 - 251.772 Harry Stebbings

They build realistic reinforcement learning environments, next-generation data quality systems built from real-world operational traces, and coding datasets that stress models under the conditions where failures matter, state changes, workflow branching, brittle tool calls. and the coding errors that break RL agents but never appear in benchmark reports.

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252.033 - 274.708 Harry Stebbings

In reality, a model may demonstrate correct reasoning in your evaluation setup, yet still select the wrong parameter or mishandle a code update in a realistic interface. Turing makes that failure visible and gives teams the signal they need to fix it. For labs advancing agentic systems, Turing provides the structure required to understand why these failures occur.

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274.928 - 287.55 Harry Stebbings

To find out how, visit Turing.com forward slash 20VC. That's Turing.com forward slash 20VC. You have now arrived at your destination. Alex.

287.53 - 311.884 Harry Stebbings

dude it's been eight years i'm hoping that my question asking ability has gone up in terms of quality in those eight years now listen i want to start 15 billion dollars you raised today and i was just looking at that and i was wondering in an age of venture today do you have to go really big or go crafts and very small and boutique to win in venture today

311.864 - 327.338 Alex Rampell

Yeah, I mean, I think this sounds like a bad word when I say death, but there is this kind of death of the middle that happens to a lot of asset classes in general. In venture capital, it was a tiny, tiny asset class at the beginning. Right now, it's gotten bigger, but it's really more of the end state of a lot of these companies is huge.

327.598 - 341.871 Alex Rampell

I mean, Sequoia used to brag about, I think it was like 20% of the market cap of the NASDAQ was Sequoia companies, millions of, like, you know, Apple and Oracle and all of these amazing names. They're very, very big. And companies go public much, much later today.

341.851 - 365.074 Alex Rampell

So the ability to deploy more capital, more money into kind of venture capital, which is no longer kind of sidetrack here, Series D didn't exist in like 1992, right? It's like that was an IPO. Like companies would go public. I think Amazon went public at like a $600 million market cap or something. Like that was the norm. There was no Series I, Series K, Series W anymore.

Chapter 8: What does the future of venture capital look like?

365.054 - 384.733 Alex Rampell

You'd raise series A, raise series B, raise series C, then go public. And consequently, venture firms back then were very, very small. But also, the exits tended to be quite small as well. If a very, very good scenario is you have a company that goes public at a sub-billion dollar market cap, and you get five of those a year, you can't raise lots of money.

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384.713 - 401.371 Alex Rampell

But now the opportunity is so much bigger. The five biggest companies on earth are all technology companies. If you rewind 20 years, I think they were all banks. If you rewind 10 years before that, they were all oil companies. If you rewind 10 years before that, they were all Japanese companies during the Japanese stock market bubble.

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401.431 - 415.328 Alex Rampell

But the opportunity in technology is so much bigger, especially because these companies, you can keep investing venture capital dollars later. I think that's one of the main, if you look at the money that we just raised, Almost $7 billion of that is for the growth fund.

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415.748 - 417.471 Harry Stebbings

David George has got a big appetite.

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418.493 - 439.25 Alex Rampell

Well, exactly. But this is the point. It's like if companies went public after the Series B back in the 1990s and the average IPO was $50 to $100 million of capital raised, the strategy would be a little bit different. But the world has changed dramatically. And the opportunity size is so much bigger. And now you have technology companies that kind of pervade everything.

439.29 - 452.875 Alex Rampell

It's like you're either, if you are a large company today and you don't use software at your core, you're going to get eaten by somebody who does use software at their core and then kind of reverse engineers into whatever product or service that you promote.

453.04 - 470.138 Harry Stebbings

Every LP says the canonical wisdom and the theory of venture, as you scale, performance goes down. Do you legitimately think then that with the expansion of these markets, you can maintain 5x plus net funds at scale?

470.32 - 494.178 Alex Rampell

Well, I think the difference, though, is that imagine that you're an LP and you have a billion dollars to invest. Would you rather invest $50 million and get a 5x on that? Or would you rather invest all billion and get a 3x on that? And the answer is you'd rather get a 3x on a billion than a 5x on 5 million. Or one of my good friends is this guy, Mickey Malka at Ribbit.

494.279 - 516.418 Alex Rampell

I was lucky to be an investor in his fund one personally. And it's like, that was like a 55x fund on, I think it was like an $85 million fund, but 55x, like that's insane. But, you know, at some point you can ask Mickey this too. It's like, you're better off with like a 5x on like a very, very large fund. Like the harder thing to do is to just return gross dollars, period.

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