AcquiredAmerican Dynamism (with Katherine Boyle)
CHAPTERS
- 0:00 – 1:42
Hotel-room recording setup and episode preview
Ben and David open from adjacent hotel rooms, setting the scene for a special episode format. They tee up the conversation with a16z GP Katherine Boyle and her “American Dynamism” investing focus.
- •Recording logistics for better audio while on the road
- •Framing the episode as a previously recorded conversation
- •Introducing Katherine Boyle and her role at Andreessen Horowitz
- •Promise of a deep dive into “American Dynamism”
- 1:42 – 6:52
Sponsor segment: Solana Foundation + Metaplex and the Solana NFT ecosystem
A sponsored interview introduces Metaplex, a protocol/framework for building NFT apps on Solana, highlighting rapid ecosystem growth. The discussion contrasts Solana’s fee/latency advantages with other chains and frames a multi-chain future.
- •What Metaplex is and the NFT standards/tooling it provides (e.g., Candy Machine)
- •Ecosystem growth metrics: collectors, mints, and creator-led projects
- •Creator economics: primary sales and crowdfunding for artists/studios
- •Solana vs. Ethereum: low fees, low latency, consumer UX considerations
- •View that the metaverse will be multi-chain with specialization
- 6:52 – 7:18
Community notes, disclaimers, and transition to the main interview
Ben shares the Acquired Slack invite and the standard investment/disclosure disclaimer. The hosts then formally introduce the interview with Katherine Boyle.
- •Slack community invitation and participation
- •Not-investment-advice disclaimer and conflict-of-interest note
- •Setting up Katherine Boyle interview as the core content
- 7:18 – 10:34
Defining 'American Dynamism' and the sectors it covers
Katherine defines American Dynamism as companies that support the national interest—often intertwined with government, regulation, and core civic needs. She explains why many major companies fall outside classic “consumer” and “enterprise” VC categories.
- •Core definition: businesses supporting national interest
- •Includes defense/aerospace plus education, housing, transportation, infrastructure
- •Software’s last 30 years left many physical/civic domains untouched
- •Government may be customer, competitor, or regulator—but impacts everyone
- •Thesis shaped by portfolio observations of big outcomes in these sectors
- 10:34 – 13:31
Why this thesis is contrarian: hard sectors, deeper J-curves, and 'holding company' dynamics
The hosts probe why the thesis isn’t universally embraced. Katherine argues these sectors are difficult due to regulation, incumbents, capital intensity, and long timelines—yet can produce enormous outcomes with fewer true competitors.
- •Counterarguments: not pure software, regulatory capture, entrenched incumbents
- •These companies often look unattractive at Series A (deep J-curve)
- •SpaceX as exemplar of long, risky early years and technical uncertainty
- •Finite talent in aerospace/defense reduces copycat competition
- •Winners often consolidate talent early and compete mainly vs. legacy incumbents
- 13:31 – 17:36
How a16z built the practice: 'It’s Time to Build' and re-engaging with government
Katherine traces the practice’s roots to Marc Andreessen’s 'It’s Time to Build' and the post-COVID world shift. She explains Silicon Valley’s long avoidance of government, despite its defense-built origins, and why that separation has become untenable.
- •COVID as a catalyst for rethinking what Silicon Valley should build
- •Venture’s modern taboo: government procurement is too hard
- •Historical irony: early Silicon Valley grew from DoD relationships
- •Growing recognition that tech already does “government-like” work
- •Tension points like employee activism and public-sector tech contracts
- 17:36 – 22:41
Government as the 'last holdout' for modern software and the cost of not adopting tech
The conversation shifts to procurement and modernization: government workers live modern consumer lives but use outdated systems at work. Katherine connects lack of tech adoption to rising costs in healthcare, housing, and education.
- •Government workflows often resemble decades-old computing environments
- •Build-vs-buy mindset persists due to internal development and procurement norms
- •“Don’t do stuff that doesn’t make your beer taste better” applied to gov
- •Cost curves: many goods got cheaper—except healthcare/housing/education
- •Regulatory and institutional constraints slow tech penetration into civic sectors
- 22:41 – 29:05
Why now: COVID tailwinds, changing founder archetypes, and the 'culture meets counterculture' shift
Katherine argues timing is driven by a changed world post-COVID and a new kind of founder. Tech-building is no longer limited to engineers; teachers, operators, and government insiders are starting companies, empowered by cheaper startup tooling and abundant capital (now being tested by the downturn).
- •Different “why now” drivers across sectors, with COVID as umbrella catalyst
- •Founder profiles expanding beyond classic engineer archetypes
- •The Social Network era helped mainstream founder ambition
- •Abundant capital lowered barriers; downturns may sharpen execution
- •Peacetime vs wartime Silicon Valley and the self-correcting role of markets
- 29:05 – 37:29
Katherine’s journey: from The Washington Post to Silicon Valley culture shock
Katherine recounts leaving a struggling journalism industry and moving west to study and join the tech story shaping institutions. She contrasts DC’s hierarchy and zero-sum incentives with Silicon Valley’s openness, positive-sum networking, and aligned incentives.
- •The Washington Post pre-Bezos era: layoffs, buyouts, and industry decline
- •Motivation to understand and participate in tech’s impact on institutions
- •Silicon Valley surprise: people respond to cold outreach and want to meet
- •DC vs Valley incentives: information/power trading vs building/founding
- •Early career in scarcity vs later work in abundance shapes risk appetite
- 37:29 – 48:30
Media’s transformation: from institutional neutrality to identity-driven activism and creator brands
They discuss how journalism changed after Katherine left: social media, especially Twitter, reshaped reporting incentives. Katherine explains the shift from institutional authority to individual brands and how that parallels the broader institutional breakdown that enables creator platforms like Substack.
- •Old-school journalism norms: neutrality, even abstaining from voting
- •Rise of activist identity in journalism and culture-shaping motivations
- •Twitter’s influence on newsroom incentives and reporting behavior
- •Individual journalist brand surpassing institutional power
- •Substack and the broader shift toward individual audience ownership
- 48:30 – 51:53
Sponsor segment: Mystery and reinventing team events/engagement
Ben and David describe Mystery, a service that plans and runs company events (especially hybrid/virtual), while measuring engagement outcomes. They highlight its customer list and a special offer for Acquired listeners.
- •Outsourcing planning/execution of employee engagement events
- •Hybrid work creating a need to reinvent team bonding
- •Measurement/analytics for engagement and ROI of events
- •Notable customers across big tech, consulting, and startups
- •Acquired offer: three events for the price of one
- 51:53 – 56:46
Decentralizing Silicon Valley: building major companies anywhere (Miami, Atlanta)
Katherine frames geographic decentralization as core to American Dynamism: talent and company-building are spreading beyond SF/NYC. She uses Flock Safety as a case study of a community-driven startup that scaled into government sales and broad public impact.
- •Post-COVID shift: founders can build from anywhere, not just hubs
- •Reversing brain drain and enabling hometown entrepreneurship
- •Case study: Flock Safety’s license-plate camera network and crime reduction
- •Start with HOAs/neighborhoods, then expand to police departments and states
- •Second/third cities (Atlanta, Austin, Provo, SLC, Miami) gaining momentum
- 56:46 – 58:41
Online-first relationship building and how fundraising/boards work in a remote era
They explore how internet-native networking became legitimate (and inevitable) with COVID, mirroring Gen Z community formation. Katherine then illustrates how modern deal flow happens through online networks and reputation, not just in-person Sand Hill circuits.
- •Internet-based communities replacing cocktail-party networking as default
- •Gen Z as proof that durable relationships form online
- •Fundraising no longer requires extended SF tours; geography matters less
- •Reputation and repeated referrals drive conviction in founders
- •Board/working relationships adapting to remote-first collaboration
- 58:41 – 1:03:43
Case study: Hadrian and the manufacturing renaissance (automation + workforce upskilling)
Katherine details Hadrian, an American Dynamism investment building automated machine shops for aerospace/defense. The story highlights rebuilding domestic industrial capacity, overcoming legacy constraints, and creating new pathways for skilled work outside the college-only narrative.
- •Hadrian’s mission: automated machine shops for aerospace/defense supply chains
- •Founder shift from PE roll-up idea to building new factories from scratch
- •Structural industry issue: retiring owners, outdated shops, hard-to-modernize infrastructure
- •Strategic advantage of proximity to LA aerospace/defense customers
- •Upskilling a new generation of machinists and validating trades as high-status work
- 1:03:43 – 1:08:17
Small tech, the creator-driven middle class, and what American Dynamism is (and isn’t)
The discussion broadens to how technology enables a “small business revolution,” from creators to Shopify/Substack entrepreneurs. Katherine argues Washington wrongly treats tech as monolithic “big tech,” while the more important story is small tech solving real problems—including civic ones.
- •American Dynamism often includes a physical component but not exclusively
- •Internet tools enable individuals to build durable, scalable small businesses
- •Policy/media fixation on “big tech” misses the dynamism of early-stage startups
- •Venture vs private equity: creation and job growth vs consolidation/cost cutting
- •Thesis: “nothing is not a tech business anymore”
- 1:08:17 – 1:11:11
Sponsor segment: Modern Treasury and API-driven money movement
Ben and David explain Modern Treasury as an API and software platform that automates payment operations and abstracts banking rail complexity. They cite rapid scaling in volume processed and a wide customer base across fintech and web3.
- •APIs + web apps to manage payment operations programmatically
- •Abstracting complexity: ledgers, bank accounts, and reconciliation workflows
- •Marketplace/fintech pain points and how Modern Treasury replaces manual ops
- •Growth from millions to billions in monthly processed volume
- •Customer examples across fintech and crypto ecosystems
- 1:11:11 – 1:16:42
Patriotism, defense investing, and 'America as the greatest experiment' (Anduril and Ukraine context)
Ben asks a moral/philosophical question about why advancing the American project is inherently good. Katherine uses Anduril as an example of initially unpopular defense investing that gained clarity amid geopolitical realities, then grounds her belief in the American dream and immigrant-founder dynamism.
- •Anduril as a contrarian defense bet that became validated over time
- •Geopolitical wake-up call: Ukraine and renewed understanding of deterrence
- •Need for modern defense contractors vs legacy 20th-century primes
- •America as a misfit/immigrant-driven engine of reinvention and mobility
- •Desire to spread Silicon Valley’s incentive alignment across the whole country
- 1:16:42 – 1:22:00
Closing vision: making American Dynamism a standard VC category + how to reach Katherine
Katherine predicts American Dynamism will become as standard as consumer or enterprise investing, emphasizing it’s not ESG or “impact-only,” but a major source of returns and national progress. She shares contact details, and Ben and David wrap with community announcements and thanks to sponsors.
- •Goal: normalize American Dynamism as a core venture practice across firms
- •Claim: major innovation and returns will come from these civic/industrial sectors
- •Founder outreach channels: Twitter and Substack
- •Acquired community plugs (Slack, LP Show, jobs board)
- •Sponsor thank-yous and episode sign-off
