There's a power struggle underway in Silicon Valley. At stake: Power itself.
One of the most influential venture-capital firms in Silicon Valley, Andreessen Horowitz, is turning the usual rules of start-up investing on its head as it's telling entrepreneurs it prefers situations where the founders, such as Facebook's Mark Zuckerberg, have controlling stakes. Spencer Ante reports. (Photo: AFP/Getty Images)
Over the past two years, one of the most influential venture-capital firms has turned the usual rules of start-up investing on its head. Andreessen Horowitz is telling entrepreneurs it prefers situations where the founders have controlling stakes, reckoning that they'll be better able to resist outside distraction and focus on making great products.
The firm—which controls a $2.7 billion war chest and invested in Facebook Inc., FB -2.92% Zynga Inc. ZNGA -1.80% and Groupon Inc., GRPN -6.20% —has naturally won support from entrepreneurs. One of its champions includes Jason Goldberg, the co-founder and CEO of online design retailer Fab.com Inc., which raised $40 million in an investing round led by Andreessen in December.
To read the full, original article click on this link: In Silicon Valley, Founders Fight for Control - WSJ.com
