Marc Andreessen joins the VC ranks

Not everyone is has been scared off by weakening returns on venture capital: Marc Andreessen, best known for co-founding Netscape and serving as the chairman of social network builder Ning, is creating a new venture fund. He first announced that he’s “creating a fund” on the Charlie Rose Show yesterday, and he confirmed to peHUB that it’s going to be a venture capital fund.

Of course, Andreessen is already an active investor who has backed Facebook, Digg, Twitter, and many others; and he has been running an angel fund with former Opsware executive Ben Horowitz since 2007. Andreessen told Rose the venture fund will “preserve and extend” the angel model; investments will range from $200,000 to $1 million, with $500,000 as the “typical size.”

“What we’re seeing is a whole generation of startups that actually don’t need very much money to get started, so the cloud computing example, or a mobile application, an iPhone developer doesn’t need very much money to get started,” he said.

I’ve emailed Andreessen asking for more details, and will update if he responds. TechCrunch has a transcript of Andreessen’s Charlie Rose appearance, which is full of good stuff, including his statement that Facebook could be making a lot more money if it were willing to run giant banner ads, but is choosing not to.

http://video.google.com/googleplayer.swf?showShareButtons=true&docId=-4837435862114260403%3A112000%3A3249000&hl=en

Trackbacks

  1. [...] Netscape founder and angel investor Marc Andreessen is partnering with long-time co-investor and Opsware executive Ben Horowitz to launch a fund to focus on venture investments of about $500,000. Andreessen and Horowitz have been co-investing as angels for years, with average investments of around $100,000 per deal; they formed the new fund to make more significant initial investments, citing the fact that many startups now need only about $500,000 to $1 million to bring their product to market. Since founding Netscape, Andreessen has remained active in the internet space and was one of the original angel investors in such buzzy startups as Digg and Twitter. The new fund was announced on the Charlie Rose Show and later reported by peHUB [...]