Andreessen: Overfunding venture capital is net positive for society overall
Marc Andreessen · How Andreessen Horowitz Disrupted VC & What’s Coming Next · Apr 29, 2025 · at 1:17:05
Marc Andreessen, co-founder of Andreessen Horowitz, explains why excess capital in venture capital provides a valuable societal surplus despite financial inefficiencies.
“If you're going to have an asset class that is to be overfunded, like this probably is the one to overfund. Right. In other words, that there's a societal surplus of all of the swings that entrepreneurs get to take that they wouldn't get to take if the sector wasn't overfunded. And some of those work, right? Like, and you have founders come out of nowhere and they raise money from no name VCs and like they end up building huge successful companies. And so I, on a societal basis, I actually think it's like a form of dysfunction that maybe is not optimal financially, but like on a societal basis, I think it's probably net positive.”
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