Marc Andreessen says being controversial gives his VC firm an 'incredible competitive advantage'

• Marc Andreessen said that his venture capital firm benefits from his willingness to be controversial.
• The Andreessen Horowitz cofounder said the ability to be "outspoken" is a draw for founders.
• "It teaches them who we are before they even meet us," he said on the VC firm's podcast.

Most executives wobble at the thought of controversy. Marc Andreessen embraces it.

The venture capitalist and cofounder of Andreessen Horowitz has been a lightning rod for Silicon Valley, voicing his opinions loudly and publicly. That includes drawing a fair share of backlash — something he seems unfazed by.

"Generally speaking, the more out there we are, and the more outspoken we are, and the more controversial we are, the better for the business," Andreessen said on "The A16z Show."

Andreessen's controversies are a pull for founders, he said, because they want to work with investors who are "brave" and "articulate things clearly."

Quiet venture capitalists leave founders in the dark, he said. A16z has taken the opposite approach.

"It teaches them who we are before they even meet us," Andreessen said. "That has proven to be this incredible competitive advantage."

Andreessen and his firm have made waves in recent years. After backing every Democratic presidential candidate from Bill Clinton to Hillary, Andreessen did an about-face in the 2024 election and threw his support behind Donald Trump — a move that proved controversial in liberal-leaning San Francisco circles.

The month after Trump's victory, Andreessen said that he spent roughly "half" his time at Mar-a-Lago discussing policy issues with the president-elect.

A16z also hired Daniel Penny, the Marine veteran acquitted in the subway killing of Jordan Neely, a 30-year-old homeless street performer.

What was A16z's most controversial investment? Cofounder Ben Horowitz pointed to Flow, the real estate startup founded by WeWork's Adam Neumann.

They're not alone. Venture capital has become a high-stakes "fame game," industry veterans told Business Insider. When Sequoia Capital partner Shaun Maguire called then-New York mayoral candidate Zohran Mamdani an "Islamist," he did not apologize and kept his job amid a social-media uproar.

The strategy seems to be working for Andreesen Horowitz. The firm announced that it raised over $15 billion in new funds on Friday, a massive sum that far surpasses those of competitors like Lux Capital and Lightspeed.

On "The A16z Show," Andreessen acknowledged that the approach was "generally true across the industry." Andreessen talks about the company's public footprint often with Horowitz, possibly because he's "second-guessing" himself, he said.

"He and I do go back and forth a bit," Andreessen said. "How many third rail topics should we touch?"