Andreessen Horowitz Raises New $1.5B Fund

Re:Andreessen Horowitz Raises New $1.5B Fund by imjk on Thursday March 27, 2014 @02:13PM (#7482147)

You're forgetting money that they can leverage from banks with the money they raised.

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Re:Andreessen Horowitz Raises New $1.5B Fund by HockeyPlayer on Thursday March 27, 2014 @03:06PM (#7482614)

I've never heard of a VC leveraging up with borrowed money. Who would be on the hook if the fund loses money?

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Re:Andreessen Horowitz Raises New $1.5B Fund by ganeumann on Thursday March 27, 2014 @03:14PM (#7482678)

VCs' portfolio companies often raise debt. This is called venture debt and the lenders are banks like Silicon Valley Bank.

VCs tend to have a love/hate relationship with venture debt. On the one hand, it means they suffer less dilution as the company grows; on the other hand, it means their investment gets riskier just at the point where they are finally de-risking the company.

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