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Scott Weiss, Andreesen Horowitz General Partner, on how his company chooses to invest in technology ventures at all stages in the game.
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Now the 64 million dollar question what's the next really big thing coming out of Silicon Valley chances are Scott -- not only knows the answer.
But it's firms probably already investing and it's -- as the general partner at venture.
Firm and -- far what's.
He's joining us -- out of Fox Business exclusive good to see you could see to the that way you when vested interest figure almost turning the VC model upside down in the olden days it was sort of put seed money into these tiny little opportunities but now you're not only doing that you're also putting money into establish -- more mature companies that's -- -- You know I'll tell -- -- we we firmly believe -- affirmed that there are ten to fifteen companies a year that return 90% of venture capital returns and we can find those companies at seed at the mid stage north late stage and whenever we find we find these true franchise players.
That's when we invest in some of the time where we find ways.
You're no stranger to Silicon Valley you started your own company -- port and -- -- to Cisco years ago and and now you're on the other side that's right try to fight that that the.
The people in whom you believe and wanna give money to what do you look for well you know it's funny the firm itself was a -- the venture capital from them was formed from six.
Former CEOs and and punch -- her so I guess we know we're looking for.
We're looking for people that that have a lot of passion and their ideas and can present them so simply and with with a lot of fire in the belly.
And and are going after markets that are just huge and and I I think now more than ever is a time where new franchises are emerging I kind of think of -- franchises being a a company of a ten billion dollar market cap -- more and we believe is a firm.
The next five years will be twenty new franchises built here are some names of companies you've invested in tiny -- Tiny -- very beau coup and then names like groupon Skype.
And Twitter and -- -- more mature businesses that -- are -- making money already on -- more -- -- -- that model -- well so far the only one that is so I don't even think it's closed -- Skype -- Microsoft has agreed to buy Skype but but so far all of -- hello about welfare I mean it feels -- You know -- is it -- is another one of those number one franchises you know that when you think of -- what -- there's really one big brand -- how much should you put into it.
We put in sixty million dollars and what's gonna -- about 3COM you know I did something like that it was a really good hit for the firm.
But it again it's just when we find these entrepreneurs we find these opportunities where it looks like they're gonna be the number one player in the market.
We jump ball okay if I'm standing before you saying it's dude I have a great idea for start up for a company what do you look for in a -- give me three things is it unique going in doing incredibly large market.
Is the entrepreneur credible and really passionate about what they're doing.
And did they see a way to really compete effectively something unique about what they're doing that no other competitors to ask stupid questions to that come in and assume or did they just dress like you with no -- -- does any of that matter it doesn't matter I would say most of the partners that we see do not come in and suits.
On but you know that they in enterprise companies I mean you're almost expected to come in and be a little bit more formal I think it's just got a Goldman Sachs without a certain time yet you be a problem yeah definitely another world it's it's totally it's a different -- but I think.
You know one of the things about the people talk about how casual Silicon Valley is it's all about.
I think teams being CEOs and leaders being approachable.
Let me just quickly -- -- before -- people say there's a cash crunch in Silicon Valley is there I think that there is that you know.
I don't think -- cash crunch for companies that really matter what the number one franchise companies used the will still get money any top good time to invest right now at the best.
Are you just -- well I mean.
Right now the Internet is working if you think about ten years ago there were fifty million browsers another two billion browsers.
And when you launch a company I was at Hotmail back ten years ago.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Scott Weiss is looking for the next big thing thank you so much thanks for having Scott as a venture capitalist to partner with entry some horror of what -- this is what Silicon Valley is all about real optimism and looking for great ideas closing bell ringing at 27 minutes.
Dow Jones industrial stock down about 202 points we're watching it closely with the markets three days of the valley just getting started to.
