Larry Summers to join VC firm Andreessen Horowitz

Former U.S. Treasury Secretary Larry Summers is joining Andreessen Horowitz as a part-time special advisor, the Silicon Valley venture capital firm announced this afternoon.

One of the nations most respected policymakers, Summerwill both advise the firm and work directly with its portfolio companies from Foursquare to Rockmelt - as they seek to restructure existing markets and expand globally.

Companies today tend to want to operate globally, much more so than 10 or 15 years ago in both the developed and developing world, saidfirm co-founder Marc Andreessen.We are fortunate enough to be working with companies that are seeking to transform individual markets here and abroad intelecommunications, advertising, entertainment, real estate and health care. AndLarrys deep insight into global economics and geopolitics will be highly useful.

Summers was director of the National Economic Council under President Obama, and before that, president of Harvard University and President Clintons Treasury Secretary.This is the second high-profile Silicon Valley job Summer has taken on since saying goodbye to Washington D.C. in late 2010. Just last week, Summers announced hed joined the board of directors at mobile payment company Square, which just today receiveda $100 million boost.

So why is he doing this, exactly?

For Summers, its all about being where the action is.Anybody who studies the Americaneconomywhen the history of our times written, technology and whats going on here right now its going to be the major story, he said.But Summers isnt trading in his New England tweed for Silicon Valley hoodies; hell stay Boston-based. Though, judging by all the emails Ive been getting ! from Mar c every night before bed, I feel virtually present, in the Silicon Valley, he said.

Speaking with Summers over the phone this afternoon, I couldnt help but ask the economist to weigh in on all the bubble talk in social media.Ever the politician, he started by expressing total confidence with his new employers financial prudence in all investments. As for theindustryas a whole, he was a bit non-committal, but erred on the side of no bubble.

Some of the statements that are made conjuring up images of the late 1990s rather misleading, he said. Most importantly, the scale, intensity and magnitude of Internet connection had changed so much since the days of Pets.com, he said.Im surprised when people treat it as an obvious judgment of bubbles in whats present today, he said. But Ive seen too much to ever preclude possibilities.

After all, the four most dangerous words in venture capital, he says are: Its different this time.

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