a16z re-cut offer to $210M
After agreeing verbally to $375M, a16z's Mark Andreessen came back to dinner and told Kalanick the partnership would only support $210M, costing them the deal.
Snapshot · The a16z Show
Travis Kalanick Is Back | Building the Future of Industrial AI
Explore episode
Jul 22, 2026
Where this was said
The Uber Series B Auction That Almost Went to a16z
At 6:01 · chapter starts 2:32
The story of Uber's Series B is a masterclass in venture deal dynamics, told from both sides of the table for what feels like the first time [1] — Travis Kalanick "Kalanick ran a masterclass in venture auction dynamics for Uber's 2011 Series B, using an 'uncapped anchor' technique to drive competing of…" 02:32 . Kalanick describes his 'uncapped anchor' method — setting a valuation floor, never a ceiling, and walking competing investors through successively higher numbers until the market clears. At $375M pre-money, a16z was in. Then came dinner with Andreessen, who revealed the partnership wouldn't support the number and came back at $210M. For Kalanick, having built that much momentum and having it collapse was a reputational crisis he had to scramble to repair — ultimately landing the deal with Shervin Milner through Menlo Park. Horowitz's version is stripped of the auction mechanics but heavy on the regret: he knew the deal was his, handed it off because he had too many board seats, and then spent a decade watching Uber win while sitting on the Lyft board as consolation.
The a16z Deal That Got Away: Uber's Series B Auction
Kalanick ran a masterclass in venture auction dynamics for Uber's 2011 Series B, using an 'uncapped anchor' technique to drive competing offers from $210M to $375M pre-money. Then a16z blinked at dinner, offering only $210M, and the deal went to Shervin Milner at Menlo Park — beginning a decade of what Ben Horowitz calls 'torture.'
Series B auction cleared at $375M pre-money
Kalanick ran a high-momentum auction for Uber's Series B in 2011, clearing at a $375M pre-money valuation before a16z pulled back to $210M, forcing him to restart the process.
Ben's Regret: 'I Was in Torture for a Decade'
Ben Horowitz had a front-row seat to one of venture's greatest missed deals. He passed the Uber pitch to Mark Andreessen due to too many board seats, then watched Shervin Milner capture the deal. The punishment? Inheriting the Lyft board seat to help a struggling competitor fight the company he should have funded.
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