I got to sit down with David Ulevitch (
@davidu) for E31 of We The Builders (
@WeThe_Builders). He is a General Partner at
@a16z where he cofounded the $1.776 billion American Dynamism practice with
@KTmBoyle about 4 years ago. Since then, it has taken over the timeline and become the language many use to describe frontier, deep or hard tech. Friend of the show
@lochhead calls this Category Design, where you don’t necessarily have to be the first to become a category leader, you need to frame the problem and do it better than everyone else.
We talk about investing strategy, founding story of American Dynamism and what made it a sticky brand, what he has learnt about how the world works from his anthropology background, surveillance concerns with public safety technologies, his best mentor who is not
@pmarca and more.
American Dynamism focuses on investing in areas such as public safety, aerospace, logistics, national security, defense, manufacturing, industrialization, logistics. Some of the companies in their portfolio include
@anduriltech , Amca,
@AppliedInt , Apex Space,
@AstroMechanica ,
@Astranis ,
@basepowerco ,
@CAForever ,
@Castelion ,
@HadrianInc ,
@NorthwoodSpace ,
@RadiantNuclear and of course
@SpaceX. Founders of many of these will be featured in upcoming episodes or are friends of the show.
David was previously the founder and CEO of OpenDNS, a cloud-delivered security service that was acquired by Cisco in 2015 for $635 million. While at
@Cisco , David was Senior Vice President and General Manager of Cisco Security — a $2.4 billion annual revenue business with more than 5,000 team members — where he oversaw the company’s global cybersecurity strategy, product portfolio, and business (via A16Z).
Timestamps:
00:00 - Introduction
01:57 - Defining American Dynamism
05:43 - Project Maven and Rebuilding the Arsenal of Democracy
07:24 - Competing with General Catalyst for Anduril
08:49 - Category creation and defining the market
10:57 - The marketing engine of “The American Dream”
15:20 - Replicating Silicon Valley
18:22 - Robot Dogs and General Catalyst
19:47 - 1776 Million: Building the American Dynamism Practice
20:59 - Why Hardware Outperforms Software Over Time
22:38 - Coupling Defense, Energy, and Space
26:28 - Investing in Public Safety
33:01 - Investment Committees are “stupid”
35:39 - Long-term partners over short-term bets
39:23 - Policy, Regulations, and navigating relationships in DC
43:11 - How regulations are slowing us down
46:54 - The Industrial Supply Chain Divergence
51:29 - Global Maritime Dominance and Expanding TAM
53:39 - Venture-Backable Bets in Critical Industrial Infrastructure
1:00:24 - Applying Anthropology: Study of People, Culture, and Political Power
1:04:08 - What Drives Innovation Across Nations?
1:11:49 - Regional Talent and State Incentives
1:15:48 - Moving from Benevolent Dictator to Minority Investor
1:20:42 - Life is Checkers, Not Chess: Agency and Knowing When to Sell
1:26:57 - OpenDNS and the Pivot to Enterprise: Letting Markets Dictate Your Revenue
1:30:13 - The High Bar for Talent: Grittiness, Grind, and Magnetic Leadership
1:33:09 - Attracting Capital via Narrative: Storytelling vs. Lying
1:35:07 - Toastmasters and Single-Topic Debates: Sharpening Communication
1:37:20 - Modern Credentials: Domain Expertise and Sourcing True Signals
1:44:23 - Government Sales 101: Enterprise Sales on Steroids
1:46:34 - Closing