Why a16z Bet on Daniel Penny
If it’s darkness we’re having let it be extravagant. — Taking Down the Tree, Jane Kenyon
AN: I’m trying my best to not cast any judgement on Daniel Penny. I refuse to believe that anyone, perhaps Daniel Penny most of all, is happy about what happened on May 1st.
The Daniel Penny Incident
On May 1, 2023, Daniel Penny, a 24-year-old former U.S. Marine, placed Jordan Neely, a 30-year-old homeless man, in a chokehold on a New York City subway train. Penny held Neely in the chokehold for several minutes, resulting in Neely's death. On December 9, 2024, after several days of deliberation, the jury found Penny not guilty of criminally negligent homicide.
I’m not writing this to make a claim about whether or not he should’ve been found guilty. I’m interested in exploring how and why he was hired and what his hiring says about our politics, the state of venture capital, and our current notions of “meritocratic hiring practices.”
Daniel Penny on the “Merits”
Meritocracy as defined by Merriam-Webster is: "A system in which the talented are chosen and moved ahead on the basis of their achievement."
By most traditional measures, Penny’s background is solid but not extraordinary. He is a Marine who served honorably for four years and has a bunch of medals to show for it. While this is “good” experience, there are literally tens of thousands of folks with the same experience. Achievement, yes, but not exactly outstanding or remarkable.
The incident on the subway, however, was remarkable. It was exceptional. He put himself in harms way out of fear for his own and fellow passengers safety and ultimately killed a man. A generous interpretation of the incident is that it required large amounts of bravery and courage and that he saved his fellow travelers from physical harm.
The only aspect of his hiring that compelled me to write this is one specific fact. It’s been haunting me since the hiring was first announced, and it’s difficult to come to terms with: If Jordan Neely doesn’t die, Daniel Penny doesn’t have a job at Andreesen Horowitz.
The Politics of Penny and Why a16z Wanted Him
David Ulevitch, GP at Andreesen Horowitz’ American Dynamism fund, gave a short explanation behind the hiring in his comments to The Free Press. From the article:
“He [Ulevitch] added that he envisions Penny, a former Marine, helping to strengthen the firm’s relationships with the Department of Defense and public safety sector. Penny will work in New York for the firm’s American Dynamism practice, a branch of the company that “invests in founders and companies that support the national interest.” (emphasis my own)
Fair, but I am struck by the sick irony of the situation. By the truth of David’s comments on the hiring. Daniel Penny was hired because he will strengthen the firm’s relationships with government institutions. On paper, that sounds fine until you really consider why Penny is uniquely able to do that.
Regardless of Daniel Penny’s own politics, he was immediately been sucked into a toxic political battle wherein, broadly, the Right hails him as an absolute hero for bringing order to the city and protecting his fellow citizens while the Left bemoans a broken justice system and disregard for the lives of homeless and Black people.
He was hired to strengthen government relationships; he wasn’t hired for heroism. Acts of heroism small and large and uncontroversial happen in American more often than one can imagine. He’s being hired because he is a cultural lightning rod, not in spite of it. Not for the courage of the act on the subway, but the fame and notoriety that followed. He’s being hired because of what “having Daniel Penny on your team” signals to the decision-makers in government and defense who control billions of dollars in public spending.
The Secretary of Defense is a Fox News anchor steeped in this very culture war, a true frontline warrior on the anti-woke, anti-DEI, law & order side of the battle. If this is the person at the top of hundreds of billions in spending, then how, as a venture firm can you get a leg up?
This is why it’s Daniel Penny and not [insert random Special Forces/Navy SEAL veteran with a more decorated war, academic, and professional record] who was hired. If Andreesen Horowitz has a meritocratic hiring process then it follows that Daniel Penny deserves his role because he has achieved more. From my point of view, his crowning achievement is stumbling onto the right side of a culture war.
Have any other VC associate hires gotten a retweet from the sitting Vice President of the United States?
What You Do is Who You Are
Andreessen Horowitz is unapologetically capitalizing on this volatile sociopolitical climate to maximize portfolio returns. This isn’t the first instance of Andreesen Horowitz greasing the wheels a bit in an unconventional manner. Ben Horowitz has given millions of dollars to the Las Vegas PD so that the police department has the budget to buy products from existing and potential portfolio companies (Flock Safety, Skydio, Prepared). “Philanthropy” is different from hiring controversial figureheads, but there’s the same murky, domineering, techno-anarchist vibe. Both this “philanthropy” and the hiring of Daniel Penny are manifestations of a “play to win” mentality that the firm is bringing to the venture capital business. A bit amoral for my tastes, but alas!
Daniel Penny doesn’t need to do a single thing and he will be enormously valuable to Andreesen Horowitz. The fact that this is true is bad. The story of Daniel Penny’s hire is not about outstanding military service or impressive intellect or demonstrations of courage. It is about harnessing his political currency to tip the scales in contract negotiations, open the right doors, and solidify influence over policies and deals that shape the future of defense and public safety spending.
Andreesen Horowitz is making a bet that the people currently in government who make massive funding and policy decisions want an ally that aligns with their cultural worldview. For the worse, I think it’s a good bet.