Why American Dynamism Is Just Getting Started

This a16z podcast discusses the origins and rapid growth of the "American Dynamism" thesis, a venture capital investment strategy focused on bolstering critical sectors within the United States. The discussion features Katherine Boyle and D'Arcy Coolican, partners at a16z known for their expertise in this area.

The Rise of American Dynamism

• If you had told me three years ago that we would be where we are today as a thesis, as a fund, as a group of Founders who are building in the national interest, I wouldn’t have believed you.
• The fact that this movement moved faster than any of us anticipated says something about the organic nature of Founders wanting to build in the physical world.
• The American Dynamism thesis gained traction much faster than expected, indicating a strong desire among founders to build impactful companies within the United States. This shift reflects a growing interest in addressing real-world problems rather than solely focusing on software and digital applications.
• The war in Ukraine and the increasing awareness of national security concerns accelerated the adoption of this investment approach.
• There's a sense that the movement is still in its early stages, with significant potential for continued growth.

Rebranding National Interest

• The fact that we said America, I do think was shocking. I still think it shocks people. For decades, it was very taboo to say you were building only for one country.
• Tech was by its nature Global… the idea that you would say no, actually there are companies by law that can’t sell to other countries, and we have an entire regulatory regime around how those companies are built… we actually need to build a practice because those companies are going to be the next phase of innovation.
• Explicitly focusing on "America" was initially controversial in Silicon Valley's traditionally globalized tech culture.
• The American Dynamism framework acknowledges and embraces the unique regulatory landscape and national security considerations relevant to certain industries.
• The term "American Dynamism" carries positive connotations, making it more palatable than previous attempts to define this investment focus (e.g., "deep tech," "frontier tech").

Beyond Defense: The Breadth of American Dynamism

• If there’s an executive department in Washington that exists to regulate or oversee an industry, that is likely American Dynamism.
• Anybody that thinks that they're building in the national interest can take a really broad lens as to what that means, and we welcome those people.
• American Dynamism encompasses a wide range of sectors beyond defense, including energy, public safety, healthcare, education, manufacturing, logistics, and agriculture. These are areas where government regulation and national interests play significant roles.
• This broad scope reflects a recognition of the interconnected nature of these sectors and their importance to overall national competitiveness and well-being.
• The a16z team actively encourages founders across these diverse fields to consider how their work contributes to the national interest.

Key Takeaways:

• The “American Dynamism” thesis highlights a shift in founder priorities towards tackling complex, real-world challenges.
• This movement reflects a growing intersection of technology, national security, and domestic policy, creating new opportunities for innovation and investment.
• The breadth of "American Dynamism" underscores the importance of a holistic approach to national competitiveness, considering interconnected sectors beyond just defense.

Actionable Insights:

• Founders are increasingly drawn to ventures that align with national interests and address tangible problems.
• Investors are recognizing the potential of these sectors and adapting their strategies accordingly.
• The long-term impact of American Dynamism will depend on the continued collaboration between Silicon Valley, Washington D.C., and founders across diverse industries.

For further insights and detailed discussions, watch the full podcast: Link