StarZero All shows Try the podcast clipper →

Nov 18, 2025 · 28m · sourcery

How Marc Andreessen, Ben Horowitz, & David Ulevitch Started a16z’s American Dynamism Fund · Sourcery with Molly O'Shea

David Ulevitch · 20m spoken Molly O'Shea · 4m spoken Marc Andreessen · 24s spoken
0:00 / 0:00
▶ Watch on YouTube →

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this episode of Sourcery, host Molly O'Shea speaks with Andreessen Horowitz General Partner David Ulevitch about the origin, growth, and investment thesis behind a16z's $660 million American Dynamism practice. Ulevitch details how shifting geopolitical realities, defense procurement reform, and AI breakthroughs are driving massive venture investment into national security, energy resilience, and critical infrastructure.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Molly holds 17.2% of the talking time here. How this is scored →

Molly as informed peer 3.3 Guest teaching 4.2 Guest disagreement 1.2 Molly pushing back 0.2
05100:0010:0020:001:40–6:54 · Molly as informed peer 3/10 Welcome & Episode Agenda Overview O'Shea sets up the roadmap and asks how Ulevitch built internal consensus for defense tech at a16z. Ulevitch walks through the narrative of splitting the Anduril Series B with Catherine Boyle and launching the practice.6:54–10:51 · Molly as informed peer 3/10 Investment Conviction & Supply-Demand Shifts O'Shea queries how a software investor finds venture returns in defense. Ulevitch delivers an extensive breakdown of supply-side technological convergence and post-COVID demand-side government shifts.10:51–13:52 · Molly as informed peer 3/10 Fund Architecture & Building Policy in DC O'Shea asks about structural fund design and engaging with Washington regulation. Ulevitch explains establishing dedicated policy apparatus in DC to support portfolio founders.13:52–19:54 · Molly as informed peer 3/10 Sponsor Break: Turing Intelligence AI Solutions Following mid-roll ad reads, O'Shea asks how government capital interacts with venture funding. Ulevitch contrasts incumbent cost-plus R&D models with private venture-funded outcome procurement.19:54–23:51 · Molly as informed peer 4/10 Institutional Capital Flow & LP Exit Strategy O'Shea asks whether the lack of late-stage liquidity worries institutional LPs. Ulevitch points to accelerating revenue growth and SpaceX as evidence that foundational infrastructure generates premier liquidity.23:51–27:43 · Molly as informed peer 4/10 How AI Transforms Defense, Energy & Public Safety O'Shea cites Carta dataset metrics showing AI capturing 41 percent of Series A volume. Ulevitch provides concrete portfolio case studies across energy grids, drone autonomy, FAA routing, and public safety vision systems.1:40–6:54 · Guest teaching 3/10 Welcome & Episode Agenda Overview O'Shea sets up the roadmap and asks how Ulevitch built internal consensus for defense tech at a16z. Ulevitch walks through the narrative of splitting the Anduril Series B with Catherine Boyle and launching the practice.6:54–10:51 · Guest teaching 5/10 Investment Conviction & Supply-Demand Shifts O'Shea queries how a software investor finds venture returns in defense. Ulevitch delivers an extensive breakdown of supply-side technological convergence and post-COVID demand-side government shifts.10:51–13:52 · Guest teaching 3/10 Fund Architecture & Building Policy in DC O'Shea asks about structural fund design and engaging with Washington regulation. Ulevitch explains establishing dedicated policy apparatus in DC to support portfolio founders.13:52–19:54 · Guest teaching 5/10 Sponsor Break: Turing Intelligence AI Solutions Following mid-roll ad reads, O'Shea asks how government capital interacts with venture funding. Ulevitch contrasts incumbent cost-plus R&D models with private venture-funded outcome procurement.19:54–23:51 · Guest teaching 4/10 Institutional Capital Flow & LP Exit Strategy O'Shea asks whether the lack of late-stage liquidity worries institutional LPs. Ulevitch points to accelerating revenue growth and SpaceX as evidence that foundational infrastructure generates premier liquidity.23:51–27:43 · Guest teaching 5/10 How AI Transforms Defense, Energy & Public Safety O'Shea cites Carta dataset metrics showing AI capturing 41 percent of Series A volume. Ulevitch provides concrete portfolio case studies across energy grids, drone autonomy, FAA routing, and public safety vision systems.1:40–6:54 · Guest disagreement 1/10 Welcome & Episode Agenda Overview O'Shea sets up the roadmap and asks how Ulevitch built internal consensus for defense tech at a16z. Ulevitch walks through the narrative of splitting the Anduril Series B with Catherine Boyle and launching the practice.6:54–10:51 · Guest disagreement 1/10 Investment Conviction & Supply-Demand Shifts O'Shea queries how a software investor finds venture returns in defense. Ulevitch delivers an extensive breakdown of supply-side technological convergence and post-COVID demand-side government shifts.10:51–13:52 · Guest disagreement 1/10 Fund Architecture & Building Policy in DC O'Shea asks about structural fund design and engaging with Washington regulation. Ulevitch explains establishing dedicated policy apparatus in DC to support portfolio founders.13:52–19:54 · Guest disagreement 2/10 Sponsor Break: Turing Intelligence AI Solutions Following mid-roll ad reads, O'Shea asks how government capital interacts with venture funding. Ulevitch contrasts incumbent cost-plus R&D models with private venture-funded outcome procurement.19:54–23:51 · Guest disagreement 1/10 Institutional Capital Flow & LP Exit Strategy O'Shea asks whether the lack of late-stage liquidity worries institutional LPs. Ulevitch points to accelerating revenue growth and SpaceX as evidence that foundational infrastructure generates premier liquidity.23:51–27:43 · Guest disagreement 1/10 How AI Transforms Defense, Energy & Public Safety O'Shea cites Carta dataset metrics showing AI capturing 41 percent of Series A volume. Ulevitch provides concrete portfolio case studies across energy grids, drone autonomy, FAA routing, and public safety vision systems.1:40–6:54 · Molly pushing back 0/10 Welcome & Episode Agenda Overview O'Shea sets up the roadmap and asks how Ulevitch built internal consensus for defense tech at a16z. Ulevitch walks through the narrative of splitting the Anduril Series B with Catherine Boyle and launching the practice.6:54–10:51 · Molly pushing back 0/10 Investment Conviction & Supply-Demand Shifts O'Shea queries how a software investor finds venture returns in defense. Ulevitch delivers an extensive breakdown of supply-side technological convergence and post-COVID demand-side government shifts.10:51–13:52 · Molly pushing back 0/10 Fund Architecture & Building Policy in DC O'Shea asks about structural fund design and engaging with Washington regulation. Ulevitch explains establishing dedicated policy apparatus in DC to support portfolio founders.13:52–19:54 · Molly pushing back 0/10 Sponsor Break: Turing Intelligence AI Solutions Following mid-roll ad reads, O'Shea asks how government capital interacts with venture funding. Ulevitch contrasts incumbent cost-plus R&D models with private venture-funded outcome procurement.19:54–23:51 · Molly pushing back 1/10 Institutional Capital Flow & LP Exit Strategy O'Shea asks whether the lack of late-stage liquidity worries institutional LPs. Ulevitch points to accelerating revenue growth and SpaceX as evidence that foundational infrastructure generates premier liquidity.23:51–27:43 · Molly pushing back 0/10 How AI Transforms Defense, Energy & Public Safety O'Shea cites Carta dataset metrics showing AI capturing 41 percent of Series A volume. Ulevitch provides concrete portfolio case studies across energy grids, drone autonomy, FAA routing, and public safety vision systems.

speaking balance: gold is Molly, purple is the guest (3 minute bins)

0:00 · Molly 20.8% · guest 79.2%0:00 · Molly 20.8% · guest 79.2%3:00 · Molly 0% · guest 100%3:00 · Molly 0% · guest 100%6:00 · Molly 6.5% · guest 93.5%6:00 · Molly 6.5% · guest 93.5%9:00 · Molly 13.6% · guest 86.4%9:00 · Molly 13.6% · guest 86.4%12:00 · Molly 72.1% · guest 27.9%12:00 · Molly 72.1% · guest 27.9%15:00 · Molly 9.4% · guest 90.6%15:00 · Molly 9.4% · guest 90.6%18:00 · Molly 8.3% · guest 91.7%18:00 · Molly 8.3% · guest 91.7%21:00 · Molly 11.9% · guest 88.1%21:00 · Molly 11.9% · guest 88.1%24:00 · Molly 6.4% · guest 93.6%24:00 · Molly 6.4% · guest 93.6%27:00 · Molly 32.5% · guest 67.5%27:00 · Molly 32.5% · guest 67.5%
Sharpest disagreement ▶ 20:09 Calling out avoidance of the American Dynamism term

Ulevitch playfully critiques institutions like JP Morgan for deploying massive capital into the space while actively going out of their way to avoid using a16z's coined terminology.

 Hardest push from Molly ▶ 21:59 Pressing on late-stage bottleneck risks for LPs

O'Shea directly questions whether historical late-stage capital shortages undermine limited partner confidence and exit expectations in hardtech sectors.

 Biggest teaching moment ▶ 16:19 Dissecting accounting burdens in federal R&D grants

Ulevitch educates the audience on why non-dilutive government R&D grants actually cripple early-stage startups with compliance overhead compared to private venture funding.

 Molly holds their own ▶ 23:51 Deploying Carta Series A data to contextualize AI shifts

O'Shea brings specific Carta venture ecosystem data regarding early-stage AI round concentration to ground the macro investment discussion.
the scores for every segment, with the reasoning behind each
ChapterTopicMolly as informed peerGuest teachingGuest disagreementMolly pushing backWhy
Welcome & Episode Agenda Overview 3310 O'Shea sets up the roadmap and asks how Ulevitch built internal consensus for defense tech at a16z. Ulevitch walks through the narrative of splitting the Anduril Series B with Catherine Boyle and launching the practice.
Investment Conviction & Supply-Demand Shifts 3510 O'Shea queries how a software investor finds venture returns in defense. Ulevitch delivers an extensive breakdown of supply-side technological convergence and post-COVID demand-side government shifts.
Fund Architecture & Building Policy in DC 3310 O'Shea asks about structural fund design and engaging with Washington regulation. Ulevitch explains establishing dedicated policy apparatus in DC to support portfolio founders.
Sponsor Break: Turing Intelligence AI Solutions 3520 Following mid-roll ad reads, O'Shea asks how government capital interacts with venture funding. Ulevitch contrasts incumbent cost-plus R&D models with private venture-funded outcome procurement.
Institutional Capital Flow & LP Exit Strategy 4411 O'Shea asks whether the lack of late-stage liquidity worries institutional LPs. Ulevitch points to accelerating revenue growth and SpaceX as evidence that foundational infrastructure generates premier liquidity.
How AI Transforms Defense, Energy & Public Safety 4510 O'Shea cites Carta dataset metrics showing AI capturing 41 percent of Series A volume. Ulevitch provides concrete portfolio case studies across energy grids, drone autonomy, FAA routing, and public safety vision systems.

Statements from this episode (10)

Disclosure
Ulevitch: a16z and General Catalyst split Anduril's Series B
“And this was their Series B. And when I went down there, I met Catherine Boyle, who was at a rival firm at General Catalyst and she thought she was going to do the Series B. And so the way we met was we ended up having to split the Series B which Anderil sort …”
David Ulevitch Nov 18, 2025 ▶ 3:56
Disclosure
a16z launched American Dynamism in 2022 using core venture funds
“And in the beginning of twenty-twenty-two, we launched the American Dynamism practice. It wasn't a fun then. You know, as Catherine would say, it was like a meme that was becoming a movement and we announced that we had committed all this money to it, but we a…”
David Ulevitch Nov 18, 2025 ▶ 6:14
Disclosure
a16z prepares second American Dynamism fund after $660M first vehicle
“We'd raise, we raised the first American Dynamism Fund, it was six hundred sixty million dollars and then we're now actually getting ready to go do our second fund.”
David Ulevitch Nov 18, 2025 ▶ 6:50
Assertion Supported
Ulevitch: Anduril's first Sentry tower used off-the-shelf parts with advanced software
“Their first century tower was essentially off the shelf parts that they put together with very advanced software.”
David Ulevitch Nov 18, 2025 ▶ 8:11
Insight
Ulevitch: Federal R&D overhead gives defense primes a monopoly over startups
“So that fifty million dollars comes with a ton of overhead of auditing, accounting, tons of oversight, and as a taxpayer, that feels totally appropriate, but it's so burdensome for a small company. It's almost impossible for these small companies to cope with …”
David Ulevitch Nov 18, 2025 ▶ 16:42
Assertion Supported
Ulevitch: U.S. defense manufacturing relies critically on Chinese raw materials
“China, their ability to build ships is much, much faster than ours. A lot of the raw materials we need for our own shipbuilding comes from China, the steel and many of the metals. A lot of the things we need for batteries, for motors, for a lot of the ingredie…”
David Ulevitch Nov 18, 2025 ▶ 20:30
Prediction Open · timeframe Nov 2030
Ulevitch predicts China will sever U.S. battery supply chain in conflict
“If they all come from China, and we ever get into a real conflict with China, whether it's an economic conflict or an actual kinetic conflict, like, They're going to cut us off.”
David Ulevitch Nov 18, 2025 ▶ 21:16
Assertion Not checkable as stated
Ulevitch: Defense tech startups are ramping revenue faster than historical precedents
“What we're already seeing in the market is, A, these companies are ramping their revenue faster than companies have in these categories ever before.”
David Ulevitch Nov 18, 2025 ▶ 22:25
Assertion Contradicted
O'Shea: Carta data shows 41% of Series A startups are AI
“Carta has some, like, incredible data on this that 41% of companies seen in Serie A, Series A are all AI, quote, unquote, AI companies.”
Molly O'Shea Nov 18, 2025 ▶ 23:54
Prediction Didn’t hold up
Ulevitch: All future autonomous vehicles will be electric
“Part of the shift to electric vehicles, obviously we have EVs today, but as we shift to more autonomous vehicles, all those vehicles are going to be electric as well.”
David Ulevitch Nov 18, 2025 ▶ 24:29
Made with StarZero

Turn any episode into a week of clips.

This entire site, over 160 episodes transcribed, diarized, checked and made playable, runs on the StarZero media pipeline. Drop in your own episode and the podcast clipper finds the moments worth sharing, cuts them, captions them, and reframes them for every feed.

Try the podcast clipper Learn more