Why does a16z need its own Y Combinator?

Image Credits: TechCrunch/Bryce Durbin

Today, the firm announced the program's official debut, after quietly piloting it for over a year.

In exchange for an undisclosed percentage of ownership, the company will give early-stage founders up to $1 million in venture capital. The checks are backed by a $400 million seed fund.

Andreessen Horowitz unveils piloted program for early-stage entrepreneurs

The remote-first program wants to connect people with partners for advice, potential customers or investors, and of course, other entrepreneurs.

American dynamism, consumer, enterprise, fintech, games or other are some of the categories a16z names on the application form for START. Investment terms will be discussed with final candidates.

The idea stage or the pre-quitting-your-day-job part of startup life is the earliest step of an entrepreneur's journey. The company has invested in solo founders before their companies existed, but this program appears to be a more formal effort to bring people into entrepreneurship. There is no mention of a diversity mandate.

The list of early participants in the program shows that a16z is interested in international entrepreneurs, similar to how Y Combinator has grown its global presence over the past few years. Executives from Rappi are some of the first entrepreneurs.

Bryan Kim and Anne Lee Skates, the two partners running the program, have not yet responded to a request for comment. I want to walk through my biggest question for the duo: Why does a16z need its own Y Combinator?

I know that it's not fair to compare the two institutions because of their focus on empowering early-stage founders with capital, networks and advice in exchange for equity. Over the years, a16z has often led some of the buzziest rounds coming out of Y Combinator.