a16z Podcast - How To Lead | Ben Horowitz on My First Million
Episode Date: December 2, 2025A16Z co-founder Ben Horowitz joins Shaan Puri and Sam Parr on My First Million to talk about how to be a great leader. Resources:Follow Ben on X: https://x.com/bhorowitzFollow Shaan on X: https://x.c...om/ShaanVPFollow Sam on X: https://x.com/thesamparr Stay Updated:If you enjoyed this episode, be sure to like, subscribe, and share with your friends!Find a16z on X: https://x.com/a16zFind a16z on LinkedIn: https://www.linkedin.com/company/a16zListen to the a16z Podcast on Spotify: https://open.spotify.com/show/5bC65RDvs3oxnLyqqvkUYXListen to the a16z Podcast on Apple Podcasts: https://podcasts.apple.com/us/podcast/a16z-podcast/id842818711Follow our host: https://x.com/eriktorenbergPlease note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see http://a16z.com/disclosures. Stay Updated:Find a16z on XFind a16z on LinkedInListen to the a16z Podcast on SpotifyListen to the a16z Podcast on Apple PodcastsFollow our host: https://twitter.com/eriktorenberg Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
Transcript
Discussion (0)
You kind of strive to get to a point of honesty, true honesty, where you're not lying to yourself.
That's hard.
To show you what a great CEO he ended up being, he created this two-month boot camp for everybody in product management, every engineer who entered Facebook had to go through this thing, learn everything, and so forth.
He's like a phenomenal student of management.
I see young people wrecked themselves so much because they have an expectation that something about life is going to be fair.
like nothing about life is fair
and so the way you succeed
is you don't have that expectation
today's episode is a bit different
A16C co-founder Ben Horowitz
recently went on the My First Million podcast
and we found the conversation so valuable
we wanted to share it here with you
you'll hear Ben get into how he thinks
about wartime versus peacetime leadership
building culture and making hard calls
as a founder. We hope you enjoyed the episode
as much as we did.
All right, today we're hanging out with Ben Horowitz, the co-founder of A16Z.
These guys manage 46 billion in assets they've invested in Stripe, CoinVace, Open AI, a bunch of the big hit tech companies.
But today we're talking about stuff that you don't usually get to hear from Ben.
So things like, how do you actually have a high confrontation conversation?
The advice he actually gives us founders, things like when he met Mark Zuckerberg and he was really young,
what he noticed about Mark that was different and what makes him such a great CEO that you can kind of steal or copy from Mark Zuckerberg's playbook.
Sam, what else do we got?
Dude, we also just hug out with him, which was like the best part.
And so he tells the story about how he helped catch Tupac's killer.
And we also asked him, what interests him right now?
What books is he reading?
What content is he consuming?
What rabbit holes is he going down?
And it was incredibly interesting.
Awesome conversation with Ben Horwitz.
Enjoy.
Okay, so I have a good Tupac story for you.
Oh, my gosh.
All right.
I'm incredibly excited to hear it.
So my wife is like the biggest Las Vegas evangelist in the world.
And she was talking to Quincy Jones' son, QD3, and said, you know, you need to move to Vegas.
And he's like, fuck that.
I'll never move to Vegas.
They didn't solve the Tupac murder.
Yeah.
You know, his sister, Kedada, was dating Tupac.
I was like, let's have dinner with the Vegas PD and see what happened.
And so me and QD3 and Nas sit down to dinner with the Las Vegas Police Department
and they bring the whole case file.
And it turns out the LAPD really fouled the case, like almost on purpose it looks like.
So at the end of the dinner, I say to the chief of police, Mike Jennero, I'm like, Mike,
you ought to reopen the Tupac case.
And he goes, I'll talk to the sheriff.
And it'll next say I call me.
He said, well, the sheriff say, he said, if Ben wants us to open the two,
The case were opening the case, and they reopened the Tupac case, and they caught the guy.
That's insane.
So, Sean, like, I don't know, Sean, if you know the story, but, like, basically, like, you know, Park and Shug got in a fight at a Tyson, Mike Tyson fight, and then, like, 30 or 40 minutes later, he was shot right in the strip on Las Vegas, and it was a cold case for years.
But everyone knew who did it.
They knew is this guy named Orlando Anderson.
Like, that was, like, the rumor.
Orlando pulled the trigger.
Keefee D told him to shoot him.
And, like, everyone knew this.
but for some reason, like, it didn't happen.
And Orlando ended up dying a handful of years later.
And what the craziest thing ever is there's this guy named DJ Vlad
who does these interviews with all these gangsters.
And he got him to, like, tell the story about the murder.
And this idiot, like, went on a podcast.
It just said, yeah, here's what happened.
So here's why he did that.
He thought he had immunity because the LAPD proffered him,
which means basically in exchange for testimony,
we grant you immunity, but they granted him immunity in L.A.
Not in Vegas.
What a idiot.
Because your latest BD.
We're life, that doesn't count here.
And little do we know that Ben's behind the scenes getting it all done.
That's pretty awesome.
Like, I followed that case religiously.
I thought it was riveting.
I did not know that you were involved.
That's pretty cool.
All right.
Well, I don't know where we want to start, but I just thought, you know, usually Ben, you don't
know this, but we have a little tradition here.
We'd like to typically start with our intro music, but for some reason,
and it's not playing.
I'm trying to get this cassette to play,
but it's just not playing.
What are we looking at here?
Oh, boy, that is, that's the blind and deaf crew.
So my friend, Seth Clark, this was back in 87 or 88,
or maybe 86, got shot and was blind.
So we formed a rap group called the Blind and Deaf Crew,
D-E-F, and, you know, we had all kinds of grimes.
about being blind and being deaf, you know.
I have one here.
It's like...
The blind deaf crew, you know where fly.
Three of us, but we got four eyes.
You know, like, that, da, that of us, you know.
Where did you grow?
I mean, like, your dad was like a...
I know who your dad is, and he was like,
he was like a well-known academic.
But where were you growing up
where you were around guys who got shot and rapping?
Well, so I grew up in Berkeley,
California, which, you know,
kind of is...
either like an academic town or part of Oakland, depending on, you know, where you are.
And I was in that kind of more part of Oakland, Berkeley.
And then, you know, I went to school in New York.
And so I got into rap in New York, and then Seth got shot back in the Bay Area.
And he was very, very depressed because he's blind.
He was only, he's a kid.
You know, so I sent him these DJ Red Alert, Check Chill Out, Mix tapes.
or tapes that I taped off the radio show
which had the brand new hip hop
which was really new at the time
and that kind of cheered him up
and so that's how we got into rap
when we came around.
We didn't succeed but we tried real hard.
Well, we wanted to just hang out with you
because you'll do, you've done 50,000 podcasts.
I think A16C now has 50,000 podcasts
and so I consider it be like, hey, is AI a bubble?
Right, like we can kind of do that
and we'll probably ask you something about AI.
I think more than anything, what we try to do on the podcast is give people a sense of what it's like to hang out with Ben Horowitz, right?
Like, what is it if they could just be a fly on the wall hanging out?
And obviously, we come from a business and tech background.
So we got a bunch of questions around that.
But I think for me and Sam, the most interesting part that I feel like you've contributed to the collective wisdom of founders, right, is your stuff on leadership.
So you've written two books.
I feel like that are really, I don't know, like top shelf on how to be a leader.
and I think it started with a general philosophy.
So tell me why most management books are terrible.
Let's start with that.
You know, the problem with management generally, I would say,
is it's very kind of situational and emotional.
And so it's like, oh, here's a book to teach you how to play NFL quarterback.
And you can read that 20 times.
You go out on the field, like things are extremely different.
If there's a 290-pound guy running at you extremely, very fast,
I'm going to kill you, like what you feel,
like what you think, how you process that is just different.
And I think management tends to be like that in that it really has to do a lot
with your situation and the feeling you have at the time it happens.
And so these management books are written like at some step-by-step,
you know, like, you know, anybody with a basic, like eighth-grade education
can understand the principles of management.
They're not that complicated.
Like it's a cookbook and you can just follow the rest of it.
Yeah, and it's like, oh, here are the five steps for building a strategy
or the three steps for, like, you know, setting up jackets.
It's not actually very useful at all because, you know, that stuff is so simple.
So I always thought, like, well, the difficult thing, you know you're either going to, like,
run the risk of renting completely out of money if you don't fire half the company.
But, like, you don't want to have that conversation because you,
promised all of these guys that the company was going to be success when you hired them.
So, like, the level of inconsistency that you're going to have to go through, the level of,
like, you know, I was completely wrong about everything, and now I'm going to fire half of you
because of the mistakes I made, will just cause you to hesitate in a way that could cost you
the company itself and, like, how do you get over that?
And then, like, what do you actually say?
And how do these conversations work and all this kind of thing?
is the actual thing that people need to really kind of get an understanding of.
Like, what are the words, you know, that get me out of this thing, at least temporarily.
And, you know, nobody had been writing like that.
The last guy who kind of, I thought, wrote a book like that was Andy Grove back when he wrote high output management.
And, you know, that book was really old at the time.
So I was like, well, somebody had to write the sequel, you know, running out.
It's been 30 years.
Do you think that it's like when it comes to leading?
do you think that it's mostly just getting your mindset right?
I mean, is that what you're saying where it's like...
No, no, no, it's more complicated than that.
You kind of strive to get to a point of honesty,
like true honesty, where you're actually being true,
like you're not lying to yourself.
That's hard.
It's almost like, you know, like if you're,
you guys are kind of creatives on the pub,
but to be like a great creative,
at some point you have to get all the way
to that very vulnerable point.
where you've exposed yourself
and all your issues and weaknesses and in everything.
And like leadership is a little bit like that
and that you're kind of pushing and pushing and pushing
to get all the way to what's true.
So that's, you know, that's part of the process.
But the other thing is just, you know,
you don't really necessarily completely know what you're doing,
particularly when you start and you're building a company.
And so you have to kind of have like it's a confidence game
or you have to talk yourself into, okay, you know, like I think I know enough, you know, to do this.
And, you know, it can be very little things.
Like I had a conversation with an entrepreneur.
He's like, Ben, like, I need your help.
And I was like, why do you need my help?
He says, my CTO is an asshole.
And I said, well, okay.
But, you know, like he's a good CTO.
I know that from talking to before.
So you're not even asking me, should you fire him, are you?
And he's like, no, I'm not asking you that.
And I said, well, tell me why he's an asshole.
And maybe I can help.
And he goes, well, you know, he made, like, a young woman on our finance team cry yesterday.
And I was like, okay, yeah, that's kind of mean-spirited for a CTO to do that.
And I said, well, you know, so you're really kind of asking me, like, not how to fire him,
but just how to have a conversation with him about his behavior without him quick.
That's what you're saying.
And he's like, yeah.
And I said, well, look, here's what I would say to him.
I would say, hey, you know, you're a fantastic director of engineering,
but you're not an effective CTO.
And, you know, if you want to be a director of engineering forever,
like we can just run just like this, and it's no problem.
You do a great job in managing your team.
You get stuff done on time.
You're great.
But you're not effective with the rest of the organization.
And that's what a CTO is.
The CTO has got to marshal the resources of the whole company
to get what he needs to get the job done.
And if you go to, like, a junior person, like, five levels below you and make her cry,
you know, you're probably right, but, like, you're never going to go what you want out of her.
So, like, you can't be affected with her.
Like, how are you going to be effective with, like, exets?
So if you want to learn how to do that, like, let's learn how to do that.
But, you know, and if not, no problem, but just know that at some point I've got to bring in the CTO.
That's the way I would have the conversation with him.
And that kind of got them to went, okay, now I can talk to them.
And so so much of, like, the mistakes that CEOs make are, like,
they just don't even know how to have the conversation.
And so it's a little bit, like the mindset part is correct
and that there is, like, a confidence part about it
where you have to be able to kind of do things when you're not sure that you're right.
But there's techniques and there's ideas and there's things in there that, you know,
it's just harder than it looks.
And the problem is the mistakes, like not talking to him.
is going to multiply, right?
Because now you're going to isolate engineering
and nobody's going to like them
and you're going to have politics in the company
and like, and, and, and, and then pretty soon
people don't even want to work there
and you can have high attrition.
And then, you know, well, why the fuck
do we have high attrition and this and that and the other?
And then the board's all upset in this.
So it kind of snowballs on you
if you can't deal with these sex.
Man, this is so cool because I just read this book
called The Motive.
And the whole book is how to have a conversation like that.
So basically, like, someone showed it.
But it's like small stuff.
So it's like someone shows up to late for a meeting.
They're not prepared.
They made someone cry.
And I remember reading this and I was like,
I don't want to talk about this on the pod maybe
because I think I feel stupid that I'm having to learn like a script on how to like
and find someone.
And then I hear you talking about this.
And I'm like,
all right.
I feel a little bit better because why is this conversation hard for me?
I feel like this should be easy.
I don't know what to say.
I literally don't know what words to use for this to be the effective confrontation.
And so I had to read a book.
And so it's actually really cool to hear you describe that other people
I think you even said, I saw an other interview about Zuck,
and I think you referenced Sam Altman.
You're like, I've seen inside these companies,
they all face these, like, challenging situations,
but they just don't know how to, like, communicate.
Yeah, you know, people get stuck.
And, you know, like, nobody, there's no way to learn, like,
how to be CEO of, like, a big company without kind of being CEO.
And so you found a company and it starts growing
and you don't know what you're doing,
and you make mistakes, and it's very scary.
And, you know, it's easy to lose your confidence.
and if you lose your confidence, you hesitate.
And if you hesitate, as CEO,
then somebody's got to step into that vacuum.
And then that's when it becomes very, like, political and dysfunctional.
You've said before, like, having confrontation the right way is super important.
And I nodded my head, and then I was like, cool.
I really don't know how to do that, though.
So, okay, so what is the right way to have confrontation?
And it's complicated, but,
Like, the first thing is you've got to stop thinking about yourself, right?
So, you know, and it could be anything.
It could be like firing somebody or getting them to change their behavior or whatever.
You're going to be saying something that they don't want to hear.
And so I think people get caught up in, well, either I need to be a tough guy
or I need them to like me or, you know, some other thing that's about,
you, but really you have to go, okay, what am I going to say to them that isolates it to this
thing that I'm really talking about? So if I need them to change this behavior, like, how do I get
them to hear that in a way they can actually act on it without getting in their feelings? And, you know,
in order to do that, you just have to be like very straightforward and you have to be open with
how you feel about it. Like, if you think they're a shitbird, then you're probably going to have to
fire them anyway. But if you think they're otherwise good, then you kind of have to let them
know that, but in a way where you're not clearly setting them up. You know, you're not giving
them a shit sandwich. You're a greatest person in the world. But this is all fucked out. And I love
you. Like that, like people are on to that. It's just too simple. So you kind of have to, you know,
you have to get to a very honest place with them and say, like, you know, we're working together
on this. You're doing this. It's not working. It's not effective. And, you know, like, I can help
you get it to be effective, but I need you to get it to be effective. Like, you have to get that
message across. And a lot of it, you know, like people will accept things from you if they feel
like you're basically telling them the truth. Like, you're, I'm like completely open and honest
about this shit. Like, I'm not telling you it's worse than it is and I'm not telling you it's
better than I is. I'm telling you what it is. And this is, you know, when I said earlier
about, like, a lot of leadership is getting all the way to the truth. You have to sit with
yourself on to say, like, what do I really think about this? Like, not what, like, motherfuckers
were complaining about him or this happened or, you know, like, it hurt my feelings the way
like this went down, like he's doing that in my company. You kind of have to get beyond that
and go, like, what's really true? Why do they do it, you know, can't
Can it be corrected?
If it can be corrected, what would motivate them to correct it?
Like, you have to get all the way to that.
Otherwise, what happens is, you know, they're just going to get upset and defensive or, like, you know, they're not going to hear it because it's too soft.
And it's like, well, yeah, like Ben kind of doesn't like that, but he doesn't really care.
So, you know, how do you get into that, like, meaningful place
where people can hear what you're talking about?
And you've invested in and known for a long time,
a lot of the tech, the biggest tech CEOs.
And I would say the stereotype of the most successful tech founders
is this sort of, like, slightly autistic,
very high IQ, lower EQ sort of persona.
But that's not really what would be good at the thing you're talking about.
And so is it that that stereotype is just,
wrong, and that's not what you've seen when you've kind of been,
you guys, I think, invested in Facebook early on, stuff like that?
Like, is it that the stereotype is wrong?
Is it that they learned these things?
Is there like some, are they taking touchy-feely at Stanford?
Like, what's helping them be able to do this?
Yes, I think some of these guys have, like, much higher people understanding than you might
think.
Like, the ones who truly, like, can't read people and understand people don't get, like,
they don't become Mark Zuckerberg.
Mark Zuckerberg, like, his mom, by the way, is like a psychiatrist.
or psychologist, and, like, he's actually pretty insightful.
And you can see it, like, in the deals he's negotiated,
the moves he's made, you know,
the guys who are processing information at that rate of speed,
you know, it's a little weird.
Like, you always feel like, okay, what the fuck is wrong on my clock?
Like, this guy's thinking faster than me.
But so my very first conversation I had was Zuck was, I think, in 2007.
And, you know, at that time, if you guys recall, you know, the Facebook traffic had flattened.
And the current, the executive staff had he had at the time was trying to run a coup to force him to sell to Yahoo.
So they were leaking all this stuff to Ballywag at the time.
And Valiwag was, you know, calling for Zuck to be fired and, you know, that whole stupidness.
And that was like that famous story where you, like, didn't sell, right?
Yeah, yeah.
and he didn't sell.
But, you know, right at that time, you know, his first question to me was, you know, should
I, if I fired my executive team for the second time, would the board be nervous?
I was like, well, you know, it's not, that's not even the question, Mark, because, you know,
if you're asking that question, then you know you kind of have to do it because you can't
succeed with them.
So, you know, whether or not you can succeed without them is, like, at least a question
Mark. It lets you know you're going to die with them. And I said, but like, you know, like, let's
talk about like why they're doing this. You know, like, why has traffic been flat? And he said,
well, he said, look, we doubled the size of the engineering team this year. We went from 400 to 800
engineers. And we had, you know, the way the product is architected, we had like a MySQL layer
and then an API and then the applications are built on the API. But a lot of the new engineers just wrote
straight to my sequel and they like horked up the whole thing and now it takes like 10 seconds to
log in and so traffic flattened because of that and I was like well how do you train these guys
and he said train these guys and I never forget that and I was like oh shit I said
Zach like when you're 10 people there's no knowledge in the company like everybody just comes
on and they jump in and they start working and so forth but you get to like 800 people a thousand
and people, like, do you have a lot of knowledge that's in your company about, like, how the
product works, how you check in code, everything?
You actually have to teach people that because they don't know who to ask or how to learn
that on their own, and so you have to do that.
And, like, just, you know, to show you what a great CEO he ended up being, he created
this two-month boot camp for, like, everybody in product management, every engineer who entered
Facebook had to go through this thing, learn everything, and so forth.
So he was like, he, you know, like he's like a phenomenal student of management.
And, you know, before he became like, you know, now he's, I wouldn't call him a student.
He's a great CEO.
But like a lot of these guys, you know, can figure out the people part pretty fast, I would say.
And like I said, the ones who truly don't understand people don't actually turn out to be good CEOs.
Like, they don't get to that level.
Like, you can, you know, you can make fun of Larry Page or Elon or Zuck or so forth,
but they are actually very smart about people, all three of them.
You have these great stories.
That's a great story.
One, I think that's in your new book, is a story that I feel like is relevant to kind of
any business size.
So some of these, it's like, oh, well, my company's never going to be 20,000 people.
So, like, I don't really, I can't really relate to this.
But one, I thought it was about collection.
It was about collecting money, which I think is that, you know, whether you're like an accountant
and you have to do this for your clients or your 10 clients or you're a big business.
And I think it's the CEO of Nation Builder.
Yeah, can you tell this story?
I thought this was a phenomenal story.
Yeah, so, you know, and they're kind of, we're living on the edge.
You know, they need every kind of thing collected possible.
And, you know, she was just like, you know, cash collections would just be, you know, and there
all this dumb stuff that would happen,
like they sent out the wrong kind of email
or this and that, and, you know,
they didn't get the thing and so forth.
And I said, you know,
I learned this technique actually from Andy,
Andy Grove, where like if a project was off track,
he would just go, okay,
8 a.m. every day, we're going to meet on it,
and I'm going to be in the meeting.
And I'm going to want answers.
And what that meeting actually turns into
is, you know, every day,
dumb thing going on, you can just resolve very, very fast because people don't know who to ask,
how to resolve it, you know, whether it's a problem and so forth. So he said, Leah, just like every
day, 8 a.m., get everybody in the cash collection team together and start the meeting by saying,
like, where's my money? Like, why haven't we collected it? And, like, make them explain to you
why they haven't collected it. And you'll be shocked at why they haven't collected it. And sure enough,
you know, it's like, well, we didn't know we could edit the email.
It's just like, you didn't know you could edit the email.
But it's, you know, those kinds of things start popping up.
I didn't know that I could do this because this is what we ought to be doing,
but we're not doing it because I don't think I'm allowed to do it.
And it's like, well, no, I'm the CEO.
You're allowed to do it.
And then that can unstick a, like, dumb project, you know,
a project that's way off track or a process that's off track or so forth.
So it's kind of like a different idea about management where, you know, the enemy as you grow, like communication becomes your biggest challenge.
And so it's just a way to go like, okay, I'm going to manually, unscalably fix communication in this organization right now.
And the amazing thing about it is does tend to be very long lasting where, like, once they get that, then, you know, it sustains.
I had a experience with a founder you invested in.
Do you know Sui Ali?
He's one of my good buddies.
And you guys invest in tiny back in the day.
Yeah, yeah, yeah, yeah.
He does this exact thing.
The founder emailed us and was like, hey, you know, we're going to start raising money.
You know, we really need to raise money.
So it's important.
And I would just love to pick your brain on what it.
It was like a very like, can I pick your brain?
Would you like to go get coffee for this?
My house is on fire.
And we were like, wait, wait, just to clarify, is the house on fire?
He's like, yeah, yeah, the house is on fire.
So he said, okay, well, let's meet, like, now.
Why are you emailing me?
Let's just talk right now.
And so he jumps on the call and, like, okay, what do you have so far?
You know, let's raise the money.
And he's like, well, here's the pitch deck.
And basically in the first 30 minutes, we just gave him like, hey, here's three things.
Let's go.
Like, these are the three most important things you've got to change.
This is part of the story is broken.
You're missing this information.
And, you know, you're framing it the wrong way.
You got to frame it this way.
And he's like, okay, this is so helpful.
Wow, thank you guys.
would love to touch base again next week.
And Sully was like, next week,
how long do you think it'll take you to make those three changes?
He's like, well, he's like,
how about we meet today at 3 p.m?
And you show me, and we did two a days with that.
And it kind of broke my brain a little bit
because there was like this invisible wall
as a business person.
Like, you don't meet twice in a day.
Like that would be a faux pa.
You know, like it's like bad manners.
It's like, fuck your manners when it's like,
was this a big problem or not?
Like, just clarify that for me.
Because if it is a big problem,
then I'll just keep showing up and saying,
okay, now what?
Okay, now what?
And okay, now, and if you just do that for three days,
like, all of the excuses get squeezed away is what I found.
Like, all the excuses suddenly disappear
and you get to the brass tacks about what's going on.
It was amazing.
That's definitely right.
No, no, that's a, you know, Zia,
Suli and I actually had a lot of conversations about he,
he went through a lot of crises in that,
so he knows.
Can I ask me about confidence?
You give a talk with a bunch of your portfolio companies
about, I think I saw you say that they don't fail due to lack of competence, but a lack of confidence.
I would say the number one reason why a founder fails at the CEO job is some kind of lack of confidence,
crisis of confidence, whatever it is, that causes them to hesitate, basically.
Okay, I should do this, and I can see that I should do this, but I'm not sure I should do this,
so I'm going to wait.
If you had to teach a class on how to improve someone's confidence,
do you have like a framework or some bullet points that you would stand by?
It ends up being like at the end of the day, confidence is personal,
and you have to feel it yourself to have it.
Like I can't, you know, it's like the Wizard of Oz.
It's like, I can give you like a clock and tell you it's a heart or whatever.
But like at some point you've got to believe that.
And the thing that causes that crisis in confidence is, you know, okay, you invent something, you hire a bunch of people, you make a decision, it's wrong, people really suffer from it.
You feel horrible because you're like, wow, I don't know what I'm doing, and I made a mistake, and it had real consequences.
Like most people in life don't have a situation like that until they become CEO.
And so then, you know, it's like, well, how do I, how do I recover that?
And so, like, a lot of the idea of the firm is like, well, you know, what if you could call anybody?
Like, how would that make you feel?
Like, what if you could call anybody, you know, in the White House and Congress in, you know, like any executive, you know, any kind of big company CEO and be able to have a conversation?
You know, like, what if we could build that network for you?
So that was kind of the idea behind the platform.
And then, you know, we would do, I used to have this event, which I should probably bring back,
but I ran out of room in my backyard called the CEO Barbecue, where we would bring all the CEOs for the portfolio.
And then we would just, like, put, like, very famous people around them.
So we had, like, Zuck and Larry Page and Kanye all out of barbecue.
And they're at the barbecue.
And there's no, like, talks.
There's no business agenda.
And there's no nothing.
There's no even toast, right?
Like, it's just a barbecue.
And so it was just to make them feel like, oh, shit.
Like, I know Kanye.
Like, I have to be somewhat important.
Like, so you're trying to, like, imbue this feeling that, like, I may not totally
know what I'm doing, but I should be CEO.
You know, like, but I'm had a barbecue with Kanye.
Yeah, yeah.
It can't be totally felt.
Yeah.
What about the inverse?
When you look at a CEO and you're like, oh, they have just, like, hit this fork in the road.
Now confidence is going to go horribly, is going to go down.
and it's going to be their demise,
what decisions do those people make?
Like, what are the commonalities
between the people who lose it that way?
Sort of like the Charlie Munger,
like, tell me where I'm going to die
so I know not to go there, right?
What would be the decisions I would make
to take me off the path?
I would say the big thing is
it's almost like a lack of decision, right?
Like, it's a hesitation.
In football, they always say,
like, you have to trust your eyes
because you could be really fast,
but if you don't start running
when you see the thing,
if you wait, then you're not fast.
and that's kind of what it's like for CEOs.
Like, you could be really, really smart,
but if you wait too long before you pull the trigger,
you're not smart anymore.
It's too like, and there's all kinds of like excuses
people tell themselves to not make a decision.
So, for example, like one of the biggest ones
on an executive, like, is, well,
if, you know, we made such a big deal when we hired him,
like what is the press going to say?
or what are the people in the company going to say?
Or, you know, I don't have time to hire a new person
to do the job that this guy's fucking up.
You know, like these kinds of,
there's all these reasons not to make the decision.
And they're all just, if you think about him for more than like five minutes,
you go, well, that doesn't make any fucking sense
because this guy's like fucking up the whole org.
Like, who goes the fuck what the press says?
Like, you just get rid of him, like start rebuilding.
now, you know, like, it's not, if he's doing a bad job, like, no job is better than a bad
job. Like, I think we all know that. And everything kind of ends up like that. I don't know
enough to make the decision. Like, I didn't give him enough of a chance, this and that the other.
So it's kind of that lack of confidence that generally causes a no decision where there really
needs to be a decision is the main, I would say that's the common pattern.
Yeah. So in the two examples you gave, the first one,
was like, ah, the CTO, blah, blah, blah.
That's kind of like, avoiding the conversation
would be the mistake there.
And then in this one, like, avoiding the decision
would be the mistake.
Yeah, you have to, you know,
I wrote a post a long time ago.
So I called, you know, run out the pain in darkness.
You have to run at the pain in darkness.
You can't run away from it.
If you run away from it, it's all bad.
You're pretty good at a titling blog post and books.
I think, you know, the hard thing.
I thought, like, badass.
But I think you said that, I think,
In the publishing industry, typically the author's title is not the winning title.
And I think you were like bragging that, you're like, that's my title.
I came up with it.
Yeah.
Well, I didn't, well, you know, because I didn't need a book, like I didn't actually want to write the book.
They asked me to write the book, the publisher.
So I felt like I did do what I wanted.
So I called it what I wanted, yeah.
What do you excite you?
So this, you know, a lot of the stuff we talked about is like the hard stuff, the pain.
And but nobody gets into this for just the pain, right?
Nobody gets into this to do the pain is just a sort of necessary that we go through to do the good stuff.
I'm just curious, what are you really excited about right now?
Like, what are either rabbit holes are going down, cool stuff you've seen that you haven't been able to forget?
Like, what's really cool and interesting to Ben Horowitz?
Well, so one of the most exciting things that's going on now is, you know, like kind of it's well known that the United States has kind of fallen behind in defense,
manufacturing, rare earth minerals, all these kinds of things.
But what's been very exciting is like there are startups that are like,
I'll solve that for America.
And so like we have a company that we just funded recently,
Periodic Labs, which is using AI to do like novel material science
to kind of enable better kind of design of everything from like rockets to missiles to,
you know, all sorts of things.
And then we have a company,
cobal metals that is basically using AI.
So they take a dirt sample and they use AI to analyze the dirt sample
and they can tell you, oh, yeah, there's going to be like, you know,
copper below that, you know, whatever, a mile down into the earth.
And so, you know, these kinds of techniques where you're kind of using tech to go,
no, we're going to catch up fast has been like very, very exciting, I would say.
My view as a founder on the ground
is just that sometimes you see something
and like I said it breaks like an imaginary wall you had
and sometimes things become cool
and cool although we tried to not like follow trends
sometimes you could use your psychology for you
rather than against you
and so the idea you know seeing what Elon is done
where it's like oh he goes into these really hard spaces
and does these like hardware hard tag
literal rocket science right
and sort of unafraid of that or you know
Anderil going in and doing, you know, weapons and defense tech
and making that cool to be kind of patriotic in that way.
Is that what it was?
Is that what it took or was there something else to it?
You know, there's a lot.
They're very challenging companies to build in some ways.
But on the other hand, you know, it's a good time to do them
because people, because Elon has, I mean, God bless Elon for showing that it was possible.
So now, whereas, like, only Elon could have financed Tesla.
Normal people can start to finance these things now
because Elon has shown that it's possible.
So it's a little bit like the four-minute mile on that way, I would say.
But, yeah, I mean, like, you know, the things that, yeah,
and even in, like, public safety, you look at something like, you know, flock safety.
In a way, technologically, it's not nearly as complicated as some of the other
as an andrel or something like that.
But it's very, very powerful.
I mean, you know, they really make both kind of policing,
being a citizen, and even being a criminal, more safe
because all of a sudden you're using AI to provide real intelligence.
So, you know, for example, in Las Vegas where we deployed it,
a huge problem, a huge problem in, like, police violence,
police getting killed, are traffic stops.
And a big reason for that is somebody reports
there's a, you know, a 1998 Honda Accura
that's driving, that's brown, that kidnapped a baby.
Okay, so that's a real situation.
But, like, that description is usually wrong.
Like the description of the actual car is usually wrong,
so you have flex safety, you have the exact match.
So the difference between a cop going into a situation
where they may have the wrong guy,
and if they have the wrong guy,
the guys could get very agitated,
and then you have a bad situation.
Or they know 100% this guy, he is in a car
that we know is the car,
and there's a baby in the back that's not his.
Okay, you're going in with a hole,
you're not sending a single person in there with a gun.
coming off their motorcycle, like, you've got a whole team
that's going to make sure that that person is apprehended safely
and correctly, and the baby is saked.
I've heard Flox, this amazing thing.
Is it drones? Is it cameras? What are they doing?
Yeah, you know, so it's primarily like a camera system
where AI will basically, so somebody does something,
you know, they grab the car on the camera,
that car shows up on another camera anywhere in the city,
and they're like, oh, there it is.
And actually, that's how they caught, interestingly,
the Tesla terrorists who set the Tesla ship on fire in Las Vegas
was he came in earlier to case the place.
Flax safety pick up the car.
They saw the car come back at night,
and they were like, oh, we know whose car that is,
and they just went arrested him.
Did you guys see that ad?
I think it was like two weeks ago.
I was trying to find it.
It went viral on Twitter,
but it was basically, I believe it was a solar company?
Was it a solar company where they're recruiting employees
and they had a whole website just dedicated to the recruitment aspect
of just they needed more staff?
And they bought an ad in the New York Times, I believe,
or some newspaper.
And it was like an old man sitting with like,
it looked like his grandson overlooking a mountain.
And they were like overlooking.
I think it was solar panels.
I'm not exactly sure.
But it was like, do you really want to tell your grandkids
that you spent your entire 30s and 40s building
just B2B software, it was great.
And there's this whole trend amongst
young people on Twitter of being more
traditional and things like that.
And I think that to answer your question, Sean, about Andrew
and Elon, I think that it's kind of been
like a perfect spiral or a perfect
mix of like people seeing
Elon and Palmer do these interesting
things. And also just like
getting sick of just building
B2B software or something, you know, that's just
a stereotype for what's boring. It may or may not be
true. But like, you know, like seeing this
and like there could be more out there.
I think that the software had to get good enough
to, of course, make these other things possible,
which is, you know, and it's amazing that we're at that time
where you can really imagine changing the world
in all kinds of ways.
You get to see a lot of pitches
of the smartest people in the world
telling you what the future is going to look like in five years.
And so you have this like element of your job
that's a little bit like a time traveler.
So you probably have a better sense of what the world looked.
Nobody has a perfect sense,
but you have a better sense of what the world looks like
five, seven, ten years from now.
You don't know exactly when,
you don't know who's going to do it.
What's broken your brain,
either from a demo or a story pitch that you've heard
sometime in the last year or so
that the rest of us will experience, you know,
sometime in the future.
Yeah, so I think, you know, one of the things that,
I mean, you know,
everybody's talking about embodied AI and robots
and so forth and rightly.
but I would say, like, in the creative space,
I'm starting to realize, like, this AI video and so forth,
it's not like making the old thing more efficient.
It's a new medium.
It's an actual new thing in the same ways that, like, movies weren't plays.
You know, AI video is not video.
The stories that you can tell are completely different
because you can do things that you just, you know,
without a $200 million dollar,
budget, you had no chance to doing. And now it's like no problem. And I think that's going to be
like very, very, very interesting. And then the, how well it's working on like existing stuff. So people,
you know, the people who are on the cutting edge of the movie industry are now, you know, they're able to do
like whole movie scenes or edit or change their movie. Have the AI actor do the, do the third cut
at a level of quality
that even the actor doesn't know
it wasn't them doing the acting
and that kind of thing.
So I think it's going to change dramatically again
and there's going to be kind of white space
for not only new creatives
but new entertainment entrepreneurs and so forth
that nobody is really imagining now.
Is there any AI content that you consume as a fan?
Yeah, I don't know.
Well, like, you know, I've been watching
that the one with the cat
was pretty good over the weekend
the cat playing all the instruments
and the lady coming out,
and the lady coming out,
you got to get that racket out
to you guys see that one.
Was that on Sora?
That was pretty good.
Yeah, I think it's a Sauric video.
Ben, do you mess around on Suno at all
with AI music?
Yeah, Suno and 11 Labs has a model
and UDio's got a very good model.
So there's a few different, really good models.
Like, I feel like I could have a music
career again. That's going to be very, very interesting to me because it's sort of, like one thing
that hip-hop showed was, so people don't really realize this, but this is something Quincy Jones
pointed out to me before he passed. He said, you know, Ben, like hip-hop started like exactly
when they canceled all the music programs in schools. Like, it was the same, the exact same time
when people didn't learn to play instruments in schools, that's when that is a good. That is a
exactly when hip-hop began.
And hip-out kind of freed you as somebody who was like a musical talent
from actually having to learn to play an instrument.
Which, you know, and even for the producers, right,
like you had a drum machine, you had samples.
So you could hear what you liked and play it,
but you didn't need to be a virtuoso.
And that kind of opened up a world that we didn't have before.
and I think AI music is kind of that on steroids.
I don't know if you guys know,
the number one song in the country right now
is an AI country artist.
So walk my walk.
Oh, yeah.
The first, I think the first AI artist
that got a record deal recently.
So this is definitely what the future looks like
is people who, non-musicians,
it's just like, you know,
repel it and others make it so that
you don't have to be a coder to make apps.
And now you don't have to be a musician to make music.
And I don't think people really understand
how big of a deal that is.
Like, my personal trainer who's been in the fitness world his whole life.
Yeah.
Has been in a rabbit hole making, he's probably in the top 0.1% of AI creators in the world right now.
Oh, that's amazing.
And he's, like, got, like, a full band.
He's like his own record label.
And every day he's up until 2 in the morning.
And he knows these programs inside it out.
And because it wasn't really accessible to somebody who didn't have, you know,
musical talent before to be able to make music.
Right.
There's a big difference between taste.
and creativity and being a virtuoso violinist, right?
Like, those don't necessarily have to be the same thing.
And it's great that, you know, people, you know,
whatever, practice violin for three hours a day
and, like, get amazing out of it and all that kind of thing.
But it's pretty neat to have a world where, like,
okay, if you can just do this part, you can still play.
Sean, can you ask, you have this really cool light about the rules of culture and making them memorable.
Well, yeah, so when I'm doing the research, one thing that stands out is like, you talk about culture, you talk about like, which is normally culture is like, I just fall asleep because it's so over talked about in the business world.
Just like, you've got to really tell me something new.
Over talked about without anybody saying anything.
Yeah, exactly.
Culture, culture, right.
And it's like, oh, so cool.
Tell me your values.
Like, integrity.
Like, all right, great.
Glad to hear it.
I was worried it was going to be the opposite, right?
Like, it doesn't really tell you anything.
And, you know, when you go walk into the company,
the stuff on the wall doesn't match the stuff you see happening within the four walls.
So it's just, you get sort of disillusioned in a way.
But when you see somebody doing something interesting or somebody actually pulling it off,
which, of course, there are examples, I get interested.
And so one thing that I thought was cool, a nuance that I hadn't really heard before was
you were talking about how at A16C, Z, you kind of take time to drive the culture.
Like, I think in the new onboarding you, like, I do a culture session, one hour,
or they sign something at the end.
And one of the nuances,
I thought that was interesting
was you said,
my rule for writing the kind of like
the culture rules is it has to have
some shock value.
Like it has to give the other person
like, oh, what the hell are you talking about
type of reaction if it's going to be memorable.
I think that idea was if it's not memorable,
it's never going to be remembered or used.
So you have to do something to make it memorable.
Can you talk about your theory around this?
Yeah.
So, I mean, it kind of comes down to what you do every day,
right?
Like it's a daily habit.
So, you know, this idea that you put cultural values on the wall
and then once a year at a performance tree,
you say, do you follow the culture?
It's like, that means absolutely nothing, right?
It's nothing.
And so it's like, well, what do you do every day?
And so, like, one of the things we do every day
is, like, we meet with entrepreneurs.
So, like, what's a rule that sets the culture around that?
So it's like, well, if you're late for that meeting,
it's $10 a minute.
And it's like, well, $10 a minute.
like, well, what if I have to go to the bathroom?
You owe me $50.
I don't care.
You know, what if I had an important phone call?
You owe me $100.
Like, I don't care you had an important phone call.
Well, like, why am I paying to work here?
You know, well, because building a company is extremely hard,
and culturally we want to have the ultimate respect for that,
and we don't want to waste any entrepreneurs' time.
And so that's your most important thing.
So you have to plan to do that.
You guys have a fine now.
You're talking, this is a real A16C?
Yeah.
So every time I have to, like,
go to the meeting, you know, like I have to think about that
because I've got to be on time.
I got to fucking plan my day.
So like there's not, I'm not back to back on that one.
I got to be on time.
Otherwise, you know, I'm going to be embarrassed
and all that kind of thing.
And so, well, why am I doing that?
And then that, okay, if you do that,
that's a habit that makes you go,
okay, like, no, I'm going to respect what this is.
I know how hard it is to build a company.
I may not even know how hard it is,
but I know that, like somebody here,
thinks it's hard enough that I have to show up on time.
So can you tell some more of those interesting?
Like, you know, the tardiness paying thing, that's pretty cool.
What does some other...
Yeah, so as well, a second one is like if you talk smack about an entrepreneur on X, you're fired.
It doesn't matter if they're in the portfolio or not, you're just, that's it.
And why is that, you know?
Well, culturally, first of all, we're dream builders, we're not dream killers.
If you want to do something bigger than yourself and make the world a better place,
I don't care what it is.
I don't care if I think it's stupid.
I'm for that.
I'm not against that.
I am for that.
And I don't care if, like, Sequoia funded you or a benchmark funded you.
I'm for that.
Like, go get up.
Like, we're a pro entrepreneur.
And then, you know, kind of related to that,
I don't want to give anybody credit for making themselves look smart by making somebody else
like stupid.
Like, I don't want to give anybody like a goal.
old star for saying that guy's, you know,
selling dollars for 85 cents.
Oh, I'm so clever.
You know, like, fuck you.
Like, no, we're not doing that here.
And so it's that kind of thing where it's like,
oh, that seems like a harsh punishment,
but I get it.
I get it because I've heard it and I understand it.
And so then that's like a way to kind of show up
behaviorally, daily, as opposed to, you know, like, here's a problem with integrity.
What does that mean?
Like, integrity only matters when it's tested.
Everybody has integrity.
Everybody's honest until it's tested.
And then when it's tested, very few people are, right?
Like, when it costs you money, when it costs you a deal, when it costs you your marriage,
are you honest then?
because that's the actual thing.
And so you can't just have it in the abstract.
You have to say, like, what behaviors do you have to have to work here?
You know, how responsive do you have to be?
These things end up making the culture much more so than, like, a value or, like, one thing I really like is the samurai called them virtues.
They ain't called them values.
It's like, these are the virtues.
Like, this is your way of being.
This isn't like some fucking, it's not a set of ideas.
It's a set of actions.
A culture is a set of actions.
Listen to this, Sean.
So if you go to A16Z.com slash about, you'll see their values.
And I just want to read, like, I've never seen this before.
So I'm just going to read a couple of them.
But the six out of seven, it's we play to win.
Our culture only matters if we're important.
And in order to be important, we must win.
we are the best firm in the world so we expect to win
it's just like that's fantastic
I love that and that's I don't know
if controversial is the right word but it's polarizing
right not a lot of people are into that
but that's that's badass then you say
you have another one that I really like we only do
we only do first class business
and only in a first class way
I think that's a really I actually stole out phrasing
from JP Morgan
he said it in court they were accusing him
was some kind of like crazy like market manipulation.
You're talking about the JP.
Yeah, yeah, yeah, yeah.
James Fair.
The PRJP, Morgan, yeah, yeah.
Yeah, I think that was, I think I read about that line in the,
Andrew Sorka's got that like 1928 or 29 book, and I think he says that, but that's
great.
So, but, okay, so, but like, when I go to this site and I see these, I'm like, okay,
this is kind of like, these are like the high level principles, but you, what you were
saying just now was a little bit different.
You were like, hey, look.
Well, there's got me behaviors that support the principles, yeah.
Yeah, so you, you basically.
we're like, what are the daily situations and actions where we have a choice?
We either show up this way or we show up this way.
And we're going to show up this way.
And sometimes with a penalty, a punishment, or a praise, based on, like, the extreme
version of that behavior with the no tolerance policy, right?
And I think there's this great military quote that you have in your book.
Oh, yeah.
Well, if you see something below standard and you don't correct it, you set a new standard.
And that's a very.
true. And that's why they have to be specific because if they're not specific, you can't enforce it.
How do you enforce, like, you don't have integrity? That just gets weaponized. It's like,
that guy doesn't have intel. He's not following the cultural value. You know, he doesn't,
why doesn't have integrity? Well, he lied to me. Well, let's go talk to him. Oh, no, I didn't lie to you.
You did it. So it's not that. Whereas, oh, you just put out that tweet. Like, that's clearly against
the cultural value. Like, uh-uh, there's no backing off that. So, like, you know, Facebook famously
had move fast and break things, which I think that was really good, by the way.
Hall of Fame.
Yeah, you know, that's a Hall of Famer, but like, that's kind of the, you know, one of the few that I know.
I thought about that for months.
Like, I'm like, move fast and break.
Because it's so counterintuitive.
It's like, well, you know, you want me to break things?
I'm an engineer.
I make things.
I don't break things.
But it was just his way of saying, like, there is no excuse for not fucking shit.
Like, we're going fast.
But they don't have that anymore, do that?
Is that something?
Well, you know, they got bigger.
and then, you know, I think speed wasn't their main thing
that they were trying to achieve.
I think they literally changed it to, like, move fast,
it's move fast, visibility and stable,
like with stable infrastructure and reliability.
Yeah, exactly.
Somehow lost its edge.
Yeah, yeah.
So have you seen anything like that,
move fast, and break things,
or just a behavior when you walked into the Airbnb office
or you noticed something?
Yeah, I mean, so, and, you know,
Amazon had this thing where they used to make the desks
out of, like, doors and two-by-fours,
I tried doing that, by the way.
It's way cheaper to get a desk.
It's way cheaper to get a desk.
But, like, I think the idea back in whatever, the late 90s when they did that was, like,
like, we're not wasting anyway, you know, and that kind of thing, which is, you know,
those markers are very, very powerful.
Like, one of my favorite one, this was actually from the Haitian Revolution when Toussaint-Lovitcher basically made a role.
He's like, you can't shoot on your wife, which was, like, so absurd because
here they are, they're in a colony, you know, a French colony.
They're, you know, the British, the Spanish, the French,
they're all raping and pillaging and doing all this stuff, all these armies.
And these guys, like, can't cheat on their walks.
But that little cultural idea that said, look, this is about trust.
I got to be able to trust you.
And, like, the people have to be able to trust you,
ended up basically really influencing the war.
So one of the things that, um,
was very surprising, I think, to people who read about the Haitian Revolution was, you know,
here's the slave army taking on these European colonies. And the white women in the colonies
supported Toussaint against, like, the French. And you go like, well, why did they do that?
Because they didn't rape. They didn't pillage. Like, to sound like, these guys were like half-naked
soldiers or slaves, and they weren't doing any of that. They were super polite. They were
They behaved in a certain way.
And the legend is, so he was Toussaint, Loverture,
but slaves didn't have last name.
So where did Loverture come from?
And so the story is Napoleon, who really was pissed at him,
brought his generals together.
And it's like, how in the fuck can you not get this slave?
Like, how can you not defeat this slave?
And they're like, well, we get them backed up.
We get him surrounded.
And then all of the sun, there's an opening.
And he became Toussaint, Laverture, Toussaint, the opening.
And the opening, a lot of people say, was created by these townspeople, these women
who were just like, oh, fuck, we're for him.
Where for that army?
I don't give a fuck about your army.
We're for that army.
So, like, culture can be, like, super influential.
That's a great story.
That's really cool.
You mentioned Amazon.
Do you see Jeff Bezos got a new startup?
Oh, yeah.
Did Jeff got a new startup?
Yeah, you didn't see this announcement.
Project Prometheus, they raised an initial.
seed round of $6 billion to bring a...
Is that really? Is that true?
They called that a seed round?
Well, yeah, it's the first round of funding.
So $6 billion raised, and they got 100 people,
and they're building AI for, like, the physical world.
So it's not just robots, but basically like the manufacturing of airplanes and ships
and things like that.
So they're basically saying, how do we use AI in, like, sort of advanced manufacturing?
I think is the idea, but obviously they're a little tight on details.
But that's pretty cool.
He's like back in a operational role for the first time, which is cool.
Yeah, no, I think that, by the way, like, how great is it that the logistics genius of our time is back at it
and going to help us, like, get back in the manufacturing game like that?
Yeah.
You know, those things are just incredible to me.
And I think all of us were a little sad when Jeff was just living his best life just because he is so talented.
So this is very great news.
I loved it.
I was like,
ha, this guy's having fun.
He's getting jacked.
He's showing a different, you know,
a new North Star also,
which like has kind of also taken over the tech industry.
And by the way, like whatever, like,
you know,
people always make you into a cartoon when you get to that level.
He is, you know,
for sure, like a top two or three best CEO in the last 40 years.
You're a bit surprising to me
because I've read all your books.
I know about your background.
Basically, like, you have, like, guided the people who have shaped destiny.
You have also shaped destiny yourself, but, like, you're...
You've done all these amazing things, and you're a shockingly fun hang.
Normally, I think...
And, like, you know about hip-hop and all this stuff.
Normally, the people who have outsized results typically have very strange personalities.
And they're, like, a little quirky, and I'm sure you have your quirks,
but you just seem shockingly well-balanced for how not...
normal your successes. Is there anything in your day-to-day life that you think that would surprise
probably like the average person or are there any tendencies that you have that you recognize
probably aren't at all normal? Well, you know, I would say probably the thing, the thing that my
daughter always says that is unusual about me. And I think it came from like the beginning of
my, you know, like I had, I am different than the modern people.
Like, I was married when I was 22.
I had three kids by the time I was 25.
Like, I kind of had to grow up fast.
And, you know, and then I had the company.
I was trying to raise the kids on the company.
And, you know, I didn't have money for nannies or anything.
So, like, it was a lot of that.
But what she says to me is she's like, dad, like, you're, like, at the top of Maslow's hierarchy.
Like, you're very zen with all this.
And, like, I take things for what they are.
I don't, like, I'm pretty good at not being unemotional, but not,
letting, like, my emotional reaction control my behavior.
Were you always that way, or did you become that?
No, no, no, no, no.
It was definitely not.
Like, I think it was just all the trauma that, like, forced me to learn that.
What made you calm down?
Was it age?
Was it kids?
Was it success?
Was it like, look, I've made it.
Everything else is just icing on the cake.
I don't care.
Well, I think it was the combination of the kids and the company, you know,
the first company I found it,
Love Cloud, which then became ops where it was so difficult that I never, like in life since
then, like, we've had difficulties building the firm, whatever, but like they never got like a rise
out of me that could compare to, you know, what I'd already been through. So it's almost like I feel
like it's almost like I know guys, my friend Oliver Stone was in Vietnam.
And, like, you could tell everything about him was,
I'm not in Vietnam anymore.
So much of his life is defined by not being in Namf.
And, like, I do feel like, I don't want to compare it to war
because people always criticize me for my war metaphors.
But it's kind of like that feeling where it's like, okay, I've been through that.
I'm just looking at the world differently now.
And I bet it.
And, like, I'm sure you had some sense of, like, all right, I've accomplished something.
Like, I feel good.
Maybe I'm playing with house money a little bit.
with everything else.
Yeah, it's a little house money,
and then it's a little like,
all you can do is deal with the thing that it is.
You can't stop it from having happened.
It happens,
and now you have to deal with it.
Were there any other sort of wisdom accelerator?
So you have these formative experiences, right?
You got three kids and three years or whatever,
and you're talking about the time of 25,
and then you're trying to build this startup
and everything you face kind of like the back against the wall moments.
Were there any other formative things?
Like, you know, for example, in my life,
I went to like a Tony Robbins seminar.
It's like, you know, I sort of got five years of wisdom in a weekend type of thing.
Yeah, he's very good at like dealing with your own psychology.
Yeah, or you spend the summer doing something or you read a book at the right time
or you get the right message with the right time and you have a moment where you just decide like from now on X.
I guess like I'm just curious.
Was there any, if I just think about like formative moments besides the kids and besides LoudCloud,
what else would there have been?
Okay, so when I was a kid, I was in this relay race.
and it was like it was a very big deal for me
you know like it was whatever the track meet
and we came in second in the relay race
my father wasn't at the race
but we came in second because
and the team that came in first
dropped the baton and like didn't pick it up
the guy just ran without the baton
and they gave in first place and they didn't penalize it
and so I was
you know my father said how'd you do in the race
and I was like well we came in second
but it wasn't
fair and I was going to explain to him why, and he said, stop right there. He said, life isn't
fair. And that shocked me so much at the time, but it really stuck with me. And it's the single
best lesson that I ever got in my life was life isn't fair. And I see young people wrecked themselves
so much because they have an expectation that something about life is going to be fair. Like,
nothing about life is fair. It's not fair where you're born. It's not fair what race you are.
It's not fair like what your parents did. It's not fair. Like the job interviews aren't fair.
Like nothing, the tests aren't fair. Nothing is fair on life. And so the way you succeed is you don't have that
expectation. You just deal with it as it is. And I think that everybody who tries to or who like
thinks, well, like, I wasn't treated fairly, or this isn't fixed.
Like, that is devastating.
You know, like, for sure, I mean, the whole time, you know, when loudclad and the
dot com crashed and half our customers went out of business, I never crossed my mind
to go, this isn't fair.
It was just like, okay, I have to deal with it.
And that is, I would say, the single best piece of advice and way of looking at life
that you can have is just
it is what it is
and now do what you can do
with it being as it is
very important
you've referenced a lot of really cool stuff
the Haiti story
I've heard you talk about history a lot
outside of work
work related stuff
what interests you right now
Sean and I we like to talk about
just fun stuff that you were into
I'm constantly reading about World War II
I like that what about you
is there anything that you're kind of like
being obsessed about.
Yeah, so I do have this, I'll give a plug for it.
So I have this charity that I created with my wife called the Paid and Fall Foundation,
which basically, you know, is kind of this idea on a whim, but we give pensions to the old hip-hop guys.
So, you know, they got $100,000 a year.
And then we have this award show for them, you know, where we name them grandmasters and so forth.
and, you know, so the first winners were Rakim and Scarface,
and then, you know, we had Grand Master Kaz and Chanté and Kumodhi and so forth,
and then Grand Puba and Colgi Rapp.
And this year, you know, we added this thing the Quincy Jones Award to the guys who got
sampled the most, and we gave it to George Clinton.
And the event was so, I'm still thinking about it, it was so amazing because,
So George Clinton knows all the words to follow the leader.
And so he's on stage, and Quincy John says,
can you rap, follow in?
He's rap, follow the leader.
And Rakim came out and wrapped it with him,
so he got George Clinton and Rakim.
And then Dr. Dre bought a table to the event.
And he, like, couldn't help himself.
He goes up on stage just to say,
look, I have no career without George Clinton.
And it was just so amazing to have, like, all these guys
that were so important,
and that influenced so many people.
Just being that appreciative of each other was, I was like, you know,
and it's kind of, and, you know, hip-hop, of course, is so competitive.
And, you know, they're always going out of each other and so forth.
But for them to be at that point where they could just go, man, you guys meant so much to me.
And that kind of thing was, it was just very special.
That's so cool.
that idea of pensions for the OGs is so great.
Did that just come on a whim?
Or you're just at lunch one day?
And you're like, why don't they?
You know, how does that idea?
Because that one liner gives you the clarity, right?
It gives you the clarity of where to go.
So I was listening to the H-To-J-Z son where he says,
I'm overcharging for what they did to the cold crush.
And it got with that, it's like, who was the cold crush?
And it turns out, right, it's Grandmaster Kaz.
and Grandmaster Kaz wrote Rappers' Delight, basically,
and they stole it from him.
And they stole it from him so nasty
that they didn't change the word.
So Big Bank Hankraft,
except I'm the G-R-A-N-D, Rai-R-N-D-A-S-C-E-R,
that's Grandmaster.
He's rapping about his name,
not Big Mac Hank.
Big Bank Hank is not named Grandmaster.
Why is he calling himself Grandmas?
Because he stole his fucking wrong.
And he never got paid and he never got credit for it.
And everybody in hip hop knows this.
And Grandmaster Kaz, by the way, like, if you meet him, he's a stalk.
Like, he's the coolest guy in the room.
He dresses amazing.
He's, like, super articulate.
He can still rap like crazy today, 66 years old or 65, something like that.
And I was like, well, like, we ought to go back and fix that.
And then, you know, Rakim was, like, on tour at these little clubs and so forth.
like, that's Rakim.
Like, how are people treating them like that?
So that was the idea.
I was like, we ought to just do it.
You know, I'm like getting it set up with the IRS
and all that stuff is like extremely complicated.
But yeah, it's been really, really, I would say, amazing.
And like just like an unbelievable epilogue.
So Cass at the last one tells me he's like, Ben, I bought a house.
I was like, oh, that's amazing, Cass, you've got a house.
He's like, no, Ben.
It's the first time in my life
I haven't lived in the projects.
Like, Grandmaster Caz,
the guy who wrote the first great hip-hop song
has never not lived in the projects.
Like, how crazy is that?
And now here he is with the house
in Pennsylvania here.
And he's got berries in his backyard
and the whole thing.
He's got berries in his backyard.
It is pretty nuts.
The people who are like invent the shit
don't get it.
Like, for example, Sean and I love UFC.
And like we see like the early UFC events.
These guys are badass.
anything, yeah.
And they're getting $2,000 to show up.
And they still come to, like, the Legends Awards and they still are talking.
And you're like, damn, dude, this guy probably is selling insurance or something like that.
Like, you know, he probably got made $15,000 that year.
No doubt.
No doubt, yeah.
This happens in the NBA, too.
This is why, like, the culture gets kind of messed up because the old heads keep criticizing all the new players.
Yeah.
And it's like, oh, why are you doing that?
It's like, well, they make $70 million a year.
And that guy didn't make seven in his whole career.
And he's like, I'm better.
on that guy and that guy, you know, so
this resentment and then they get on
and then they're the guys doing the halftime
shows and it's bad for the product, right?
It's bad for the lineage, right? Because
everything is a creative lineage like
on top of what it was before, right?
So it's really cool to kind of almost
like economically fix the,
you know, try to improve that ecosystem
because it's like the whole thing. It's kind of
like, you know, it's funny.
It's also kind of this thought
I have about capitalism, which is
Capitalism is definitely the system that lifted the world out of poverty
and, like, kind of created the modern world we live in.
You know, it's incredibly powerful, but right over time, it does get corrupted and so forth.
And even if it wasn't corrupted, it's not perfect.
And, like, certain things happen, like, oh, you create a musical art form
and are the guys who actually made it happen,
and it becomes the biggest musical art form in the world,
and you never got paid.
Like, capitalism, shit work like that,
but it's just kind of the way it works, right?
Like, and it's somebody's fault.
And so, like, if you can go back and say,
well, we'll just correct those things.
I think that, I think you are so cool.
Like, you're, on one hand,
you're, like, a pretty, like, hard-hitting capitalists
where you're getting after it,
and you're talking about making really tough decisions
of having to fire people, whatever.
But then you're also like,
but also we can do good by doing all this other stuff.
And I think that, like, particularly in tech,
I don't think that people's interests
are particularly that wide.
Yeah.
Well, I think people
get very into tech.
Yeah, like tech
is so deep and vast
that people can get stuck in it
for sure.
Yeah.
Well, Ben,
we thank you for coming on,
man.
I know you got a lot of things going on,
but this is a lot of fun.
I appreciate it.
Yeah, no, it was a good time.
Thanks, guys, definitely.
All right, appreciate you.
That's it.
That's a pod.
Thanks for listening to the A16Z podcast.
If you enjoy the episode,
let us know by leaving a review
at rate this podcast.
We've got more great conversations coming your way.
See you next time.
This information is for educational purposes only and is not a recommendation to buy, hold, or sell any investment or financial product.
This podcast has been produced by a third party and may include pay promotional advertisements, other company references, and individuals unaffiliated with A16Z.
Such advertisements, companies, and individuals are not endorsed by AH Capital Management LLC, A16Z, or any of its affiliates.
Information is from sources deemed reliable on the date of publication, but A16Z does not guarantee its accuracy.
