I suspect this is more of a PR move about their focus than anything else. We'll have to see how it plays out, but as a16z grows, I'm sure a ton of Series A deals are trying to get an intro, this leads to overhead and a mass of companies that a16z doesn't feel are a good fit for the exponential returns they are looking to get. Get rid of those companies by saying we don't do series A. But they'll still get deal flow through their contacts, and I'm sure if an amazing Series A opportunity comes through, they'll jump on it. Nothing here is stopping them from investing, they're just saying "if you're looking for Series A, don't come to us".
My question is how does investing in YC companies at seed stage, but then blanket refusing to invest in those companies Series A deals reflect on those companies? Or is this another reason to state loudly that they don't do Series A deals? That way it doesn't reflect badly on the early stage companies that existing investors aren't re-investing. Then, if they do decide to invest in a YC company series A, it's a positive response, rather than the expected.
I think Scott's interview is being overinterpreted. We aren't blanket refusing to do Series A investments -- in fact, we are working on multiple Series A investments right now (both consumer and enterprise). Scott was describing our framework for thinking about consumer vs enterprise in the current environment, not laying down the law on what we will and won't do.
My question is how does investing in YC companies at seed stage, but then blanket refusing to invest in those companies Series A deals reflect on those companies? Or is this another reason to state loudly that they don't do Series A deals? That way it doesn't reflect badly on the early stage companies that existing investors aren't re-investing. Then, if they do decide to invest in a YC company series A, it's a positive response, rather than the expected.