AI Summary
5 min readAndrew Chen, a16z general partner and head of the firm’s Speedrun program, describes the companies he works with as “truly little tech.” The average team is two to three people, often working out of a kitchen table, not an office or co-working space. They are so mission-focused and trying to survive that they simply don’t have time to participate in broader debates about rules that could directly affect them. In this conversation with Matt Perault, Chen explains what life looks like for founders at this stage, how regulation shapes where they choose to build, and what it takes to create an environment where the next generation of companies can get started.
What "Little Tech" Actually Looks Like
Speedrun is a12z’s program for investing in companies on day one—often before they are even incorporated. Chen says the goal is to get as close as possible to the moment founders are created. In the most recent batch of 70 companies, about a dozen founders had full-time jobs and had to turn in their laptops and badges before a16z could wire the money, because they didn’t yet have a legal entity to receive it.
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What you'll learn
- 1 (00:28) **What is Speedrun?** - Andrew Chen defines his program, which invests up to $1M in brand-new, pre-incorporation startups.
- 2 (02:47) **How Speedrun Picks Founders** - Andrew explains that they invest in people, not polished ideas, because the best initial concepts often change completely.
- 3 (04:48) **The Reality of "Little Tech"** - The average Speedrun team is just two to three people, running their company from a kitchen table.
- 4 (07:05) **Why a16z Invests at the Very Beginning** - Andrew explains the mission is to get as close as possible to the moment a founder is created, not just to wait for mature businesses to show up.
- 5 (09:14) **A Day in the Life of a Speedrun Founder** - Andrew paints a vivid picture of two founders, often from outside the Bay Area, arriving in San Francisco with their first big check.
- 6 (14:01) **What Happens When Startups Fail** - Andrew is candid about the venture math: half of companies fold outright, and all the money is made on the "top decile" grand slam.
- 7 (18:20) **How Little Tech Thinks About Policy** - Matt Perault pivots to policy, asking how these tiny teams view the regulatory landscape.
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Show Notes
a16z’s Matt Perault sits down with General Partner and Speedrun lead Andrew Chen on the a16z AI Policy Brief to explore what “Little Tech” actually looks like at the earliest stages, and why the realities of building a two- or three-person startup are often missing from policy debates.
Andrew takes us inside Speedrun, where founders are often starting companies from kitchen tables, working with tiny teams, and trying to determine in a matter of months whether their idea can become a viable business. He explains why these founders rarely have the time or resources to engage with policymakers, even as regulation can have an outsized impact on whether and where they build.
Matt and Andrew also discuss how regulatory burdens accumulate for young companies, why startups can choose where to put down roots, the role of ecosystems like Tech Week, and what policymakers can do to hear directly from the founders who may otherwise be absent from the conversation.
This episode originally appeared on the a16z AI Policy Brief.
Resources:
Follow Andrew Chen on X: https://x.com/andrewchen
Follow Matt Perault on X: https://x.com/MattPerault
Learn more about a16z Speedrun: https://speedrun.a16z.com
Listen to more from the a16z AI Policy Brief: https://a16zpolicy.substack.com/
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Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.
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