Episode 126 of Season 4 of The Scoop was recorded remotely with The Block's Frank Chaparro and a16z General Partner Chris Dixon.
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To date, Silicon Valley-based VC firm a16z has raised over $7.6 billion to invest in crypto and web3.
In this episode of The Scoop, a16z General Partner Chris Dixon shares some of the guiding principles that determine a16z’s investments in the crypto space and explains why the time is ripe for decentralized networks to replace centralized, corporate ones.
According to Dixon, both a16z and other VC firms have begun to shy away from investing in projects building on top of corporate networks:
“Our firm and others do not invest in things anymore that are building on these networks — on these corporate networks like Facebook and TikTok and things — because they know we've seen before that if you're successful, they'll just take all the money.”
While corporate networks had initial advantages such as access to VC funding and the ability to subsidize parts of their business models, Dixon believes decentralized networks have matured to the point where they are ready to take on their corporate counterparts.
As Dixon explains,
“Now we have the tools, I believe we, meaning the side of people that want things to be open and community-owned through blockchains, now have the tools to rival corporate networks and beat them.”
During this episode, Chaparro and Dixon also discuss:
- How VCs manage risk in their portfolios
- The relationship between the internet and ‘networks’
- Why a16z never invested in FTX
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