What can European VCs learn from Andreessen Horowitz’s approach to value creation?
Advisor: Dr. Sarah Theinert (UVC Partners)
Start: ASAP
Background: Andreessen Horowitz (A16Z) has become a leader in venture capital by focusing on more than just financial investment. With a network-driven approach, A16Z has built an ecosystem around portfolio companies, providing significant value through operational support, talent acquisition, marketing, and strategic networking. More than half of its 150 employees are focused on value-creation acitivities. This model has played a key role in scaling startups across high-growth sectors like SaaS, AI, and biotech. This thesis aims to explore how European VCs, particularly UVC, can learn from A16Z’s value creation model to enhance their own support for portfolio companies, especially in B2B deep tech.
Research Objective: This study will analyze A16Z’s value creation approach and identify best practices that European VCs can adopt. It will:
- Investigate A16Z’s platform-driven model for operational support and networking.
- Compare A16Z’s approach with current European VC practices.
- Explore the adaptability of A16Z’s model to the European market and B2B deep tech.
Methodology:
- Literature Review: Analyze existing research on value-added services in VC, with a focus on A16Z’s platform approach and the role of networks.
- Interviews: Conduct interviews with A16Z network members (partners, portfolio companies) to understand their value creation practices; Compare these insights with European VCs to identify transferable strategies.
- Comparative Analysis: Identify gaps in European VC models and assess the challenges of implementing A16Z’s approach in Europe.
Literature:
- Miller, P., & Bound, K. (2011). The startup factories: The rise of accelerator programmes to support new technology ventures. NESTA Report.
- Blank, S. (2013). Why the lean start-up changes everything. Harvard Business Review, 91(5), 63–72.
- Gompers, P., & Lerner, J. (2004). The venture capital cycle. MIT Press.
- Hochberg, Y. V., Ljungqvist, A., & Lu, Y. (2007). Whom you know matters: Venture capital networks and investment performance. The Journal of Finance, 62(1), 251–301.