Technical Moat

    Andreessen Horowitz

    "Software is eating the world"

    Andreessen Horowitz looks for companies with deep technical moats—technology that is genuinely difficult to replicate. They believe software is transforming every industry, and they invest in founders who understand this transformation at a technical level. a16z evaluates whether a company can become a platform, not just a product.

    Founded
    2009
    Location
    Menlo Park, CA
    AUM
    $35B+
    Stage
    Seed to Growth

    "In the future, every company will be a software company."

    MA
    Marc Andreessen
    Co-founder, Andreessen Horowitz

    Key Investment Principles

    Technical Differentiation

    The technology itself should be defensible and difficult to replicate.

    Platform Thinking

    The best companies become platforms that others build on.

    Network Effects

    Products that get better as more people use them have sustainable advantages.

    Full-Stack Support

    a16z provides extensive operational support beyond just capital.

    What They Look For

    • Deep technical moat or proprietary technology
    • Platform potential with ecosystem opportunities
    • Network effects that compound over time
    • Founders with strong technical backgrounds
    • Software-driven transformation of traditional industry
    • Scalable architecture and infrastructure
    • Clear path to becoming category leader

    Red Flags

    • Technology easily replicated by competitors
    • No clear technical differentiation
    • Founders without technical depth
    • Products without platform potential
    • Missing network effect dynamics
    • Incremental rather than transformative tech

    Scoring Dimensions

    Technical Depth
    30%

    Sophistication and defensibility of core technology

    Platform Potential
    20%

    Ability to become a platform others build upon

    Network Effects
    20%

    Product improvement dynamics as usage scales

    Founder-Market Fit
    15%

    Technical founder's unique advantage in market

    Market Transformation
    15%

    Potential to transform industry through software

    Investment Profile

    Ideal Founder

    Technical founder with deep expertise building defensible, platform-potential technology

    Typical Check Size

    $2M-$100M+ (seed to growth)

    Notable Portfolio Companies
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