The partnership model can be lucrative. A16z’s billions under management generates sizable money management fees for the firm, in addition to profits made when its investments succeed.
However, Andreessen said he constantly reminds internal staff and limited partners that the company isn’t raising money just to harvest the fees. It’s to give the company the cash to invest in growing companies.
“When we go for scale, it’s because we think it’s necessary to support the kinds of companies we want to help our founders build,” he said.