This VC is Impressive, Delivering $25 Billion in Net Returns to LPs

 

Other people’s VC!  

 

Recently, a 12-page internal report from renowned VC firm a16z (Andreessen Horowitz) was leaked.  

 

The report reveals that since its founding in 2009, a16z has delivered a total of $25 billion in net returns to its limited partners (LPs) as of June 30, 2025.  

Other People’s VC, $178 Billion in Net Returns

The PPT highlights several key milestones:  

 

In 2013, a16z surpassed $1 billion in returns, largely due to Microsoft’s acquisition of Skype, where a16z’s 2% stake contributed $100 million in net returns.  

 

In 2018, it crossed $5 billion, driven by GitHub’s sale to Microsoft, turning a16z’s $100 million investment into a $1 billion payout.  

 

In 2021 alone, returns surged by $11.2 billion, accounting for about 45% of the cumulative total.  

 

The PPT breaks down the $11.2 billion from 2021 into five major exits:  

 

1. Coinbase (NASDAQ:COIN): a16z invested in the 2013 Series B. On its April 2021 IPO day, a16z cashed out $4.475 billion, with its remaining 7% stake valued at ~$3 billion, included in returns.  
2. Robinhood (NASDAQ:HOOD): a16z joined the 2013 seed round, cashing out and holding shares worth ~$2 billion after the July 2021 IPO.  
3. Roblox (NYSE:RBLX): a16z invested $150 million for a 5% stake in the 2020 Series G, yielding ~$1.8 billion after the March 2021 IPO.  
4. Marqeta (NASDAQ:MQ): June 2021 IPO generated ~$1.2 billion in returns.  
5. Affirm (NASDAQ:AFRM): January 2021 IPO brought ~$1 billion in returns.  

 

The PPT also discloses two key details:  

 

1. Of the “paper returns” from 2021 IPO exits, 38% were locked in via secondary market or hedging transactions before the 2022-2023 SaaS valuation pullback, avoiding losses from the 2022 tech stock crash.  
2. The 2013 Fund has achieved a DPI (distributed to paid-in capital) of 4.1x, making it a16z’s fastest-returning flagship fund.  

The Maverick a16z: “Invest Early, Hold Big, Shout Loud”

In 2009, Marc Andreessen and Ben Horowitz launched a16z with $160 million in seed capital.  

 

Its first fund was $310 million, investing in just 2 deals in year one, 25 in year two, 59 in year three, and 95 in 2012. With a strategy of “invest early, hold big, shout loud,” a16z quickly built its brand.  

 

In 2013, leading Coinbase’s Series B marked a16z’s first “70x single-ticket” breakout success.  

 

In 2015, a $100 million bet on GitHub made a16z the biggest external winner in Microsoft’s $7.5 billion acquisition.  

 

Since 2018, a16z has made “media operations” a standard, with an 80-person content team producing weekly articles, podcasts, and YouTube videos to gain entrepreneurs’ priority selection—mirroring the playbook of China’s Matrix Partners.  

 

Internally, a16z divides its “full-cycle” strategy into three stages: Seed ($0.5M-$5M per deal, ≤5% of fund size); Venture (Series A-C, $10M-$100M per deal, ≤10% of fund); and Growth (Pre-IPO, $100M-$500M per deal, ≤20% of fund).  

 

This approach secures early low valuations and allows later-stage top-ups to maintain ownership. The PPT shows 63% of 2021’s $11.2 billion returns came from follow-on gains on 2013-2017 “early investments,” validating the “early + top-up” strategy.  

 

Currently, a16z manages ~$58 billion in assets (AUM), with ~$42 billion in primary market funds and the rest in secondary markets, crypto hedge funds, and RIA accounts.