Dixon: a16z funds operating teams with management fees rather than partner salaries
Chris Dixon · #5 Chris Dixon: The State of Venture Capital · Nov 13, 2015 · at 11:01
Chris Dixon of Andreessen Horowitz explains why legacy venture capital firms struggle to replicate a16z's full-service agency model.
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“The traditional structure is basically that VC funds charge fees and then most of those fees go to the partner salaries. We don't, instead we put our fees towards these operating teams. So for our competitors to copy us, they'd have to kind of dramatically change their own compensation and pay structure.”
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