Rick Heitzmann

Venture capitalist - Founder and Managing Director at @FirstMarkcap, Entrepreneur, avid Philly sports fan

[Rick Heitzmann @rick]

We are fortunate to have partnered with some of the best entrepreneurs in the world and had the support of world class LPs who share our long term vision. Appreciate the opportunity to continue our mission.

[FirstMark @FirstMarkCap]

1/ We're proud to announce our newest funds, FirstMark VI and OF IV, with $1B+ in commitments

[Rick Heitzmann @rick]

Agree @jlanzobe - great at CEOing & developing at fantasy football #drakelondonexperience

[Josh Elman @joshelman]

Some think of Yahoo! as an old business, decaying.

But somehow @jlanzone and team are doing the unexpected - and really turning it around into a relevant modern juggernaut.

Kudos to my friend Jim even if he sucks at fantasy football.

great ROI for its investors too.

[Rick Heitzmann @rick]

Super excited for this one!

[Baba @BabaHQ]

Today, Baba raised a $40M Series A.

We give each Medicare member and their family a dedicated team of advocates and behavioral health experts to keep every part of their care moving forward. In a world obsessed with AI personal assistants, it’s never been more important to have expert humans in the loop to go the last mile, particularly in healthcare.

Our advocates have moved mountains for their patients - finding safe housing for the near-homeless, recertifying Medicaid for those about to lose their benefits, and getting financial assistance for people cutting their pills to afford groceries.

In the process, we’ve used AI to scale the impact this special team can have. And to truly teach AI to reason and execute like the best care coordinators, we’ve built the largest learning environment for the type of work that we do everyday.

There is still a lot to do: we’ve served fewer than 1% of the 70 million Americans on Medicare.

Baba does not lack capital or customer demand. Our ability to seize this opportunity is now limited by the capacity of our team. If you’re an exceptional engineer or operator in New York, come build with us: https://t.co/iNUpe3Zd6U.

Our Series A was led by @FirstMarkCap , with @CVSHealth, @valtruis, @generalcatalyst, @geniusventures, and @GroundUpVC investing alongside them.

[Rick Heitzmann @rick]

Excited to partner to help provide high quality care for those in needs

[Connor Sweeney @_ConnorSweeney]

Today, @BabaHQ raised a $40M Series A.

We give each Medicare member and their family a dedicated team of advocates and behavioral health experts to keep every part of their care moving forward.

In a world obsessed with AI personal assistants, it’s never been more important to have expert humans in the loop to go the last mile, particularly in healthcare.

[Ivan Burazin @ivanburazin]

We just raised a $60M Series B at a $1B valuation to build @daytonaio into the Agent Cloud.

@FirstMarkCap led the round, with all key existing investors and angels doubling down.

We're also thrilled to welcome the founders of some generational companies aboard, including @patrickc (Stripe), @tobi (Shopify), @AravSrinivas (Perplexity), @BrendanFoody (Mercor), @oliveur (Datadog), @adamdangelo (Quora) and @ericsyuan (Zoom)

We're a 35-person team. But that's about to change; we're hiring across the board, and we'd love for you to join us.

[FirstMark @FirstMarkCap]

FirstMark CEO Summit today feat the iconic @harleyf of @Shopify, Mark Ebert of @profound, Alex Buder Shapiro of @clay, and @glencoates of OpenAI 🚀

Always an incredible day bringing the FirstMark family together under one roof!

[Rick Heitzmann @rick]

@donsteele As were you my friend

[Rick Heitzmann @rick]

Appreciate our team and the have tremendous gratitude to the entire #NYCTech community

[FirstMark @FirstMarkCap]

Thank you to all of the wonderful founders and friends of FirstMark who joined us at Dante last night for the 2026 Founder Dinner. It was a fantastic night for all of the FirstMark community. See you next year! 🗽

[Rick Heitzmann @rick]

Similarly most of the value did then and will continue to differentiated players at the application layer

[Eric Hippeau @erichippeau]

Since I lived through it, I am often asked if the current AI infrastructure frenzy is similar to the https://t.co/aGbLB6MZ3w era of the late 90s when the infrastructure of the internet was built.

In the late 90s, telecoms such as Global Crossing (I was on the Board) and AT&T spent over $500 billion laying fiber optic cable in anticipation of rapid internet adoption. At its peak, the telecom bubble reached about $226 billion a year (in 2025 dollars), or 1.2% of GDP.

In the AI era today, the Big 4 (Alphabet, Amazon, Microsoft, Meta) and others (Nvidia) are projected to spend about $750 billion in AI capex in 2027, or about 2.2% of GDP. This is higher than 1.2% of GDP in the 90s but well below railroads’ 6% peak.

What is different is that fiber is still in use 25 years later but AI spending goes mostly to chips which might have a useful economic life of 5 years.

In the internet era, excess fiber capacity could eventually be used at a relatively low incremental cost. In 1998 almost no one could have predicted the eventual economic value of YouTube, Netflix, Facebook or modern cloud services.

No matter if the hyperscalers recoup their investments at the current pace, the most interesting historical parallel may be that the internet and mobile revolutions produced their biggest winners after the essential infrastructure was in place.

The best is yet to come!

[Rick Heitzmann @rick]

Yes. 💯

[David Wehrs @davidwehrs]

Ask any founder. Building a company is a herculean effort. In health, very few have the formidable combination of deeply authentic, patient first leadership and sweeping, objective, and data driven domain knowledge. @ZReitano is a force.

[Rick Heitzmann @rick]

Seems very correlated with agency and optimism

[Nicholas Fabiano, MD @NTFabiano]

Life satisfaction is highly consistent with personality traits.

The top trait was "Have a lot of fun".

[Rick Heitzmann @rick]

💯… also it’s all about your relationships and integrity

[Gokul Rajaram @gokulr]

I would tell my 25 year old self three things:

1. Build relationships with people and don't be transactional.
2. Have high agency, be an independent thinker, build your own conviction and don't wait for consensus or approval.
3. Focus on the small set of things (in both work and life) that do actually matter.

[Rick Heitzmann @rick]

100% cc: @NateTepper

[Jeffrey Katzenberg @jeffreykWNDR]

The World is Changing: AI For Creativity

By Jeffrey Katzenberg

A few months ago, I sat in my office in Silicon Valley and watched as a tech founder showed me something extraordinary. On the screen was a fully realized, beautifully lit, well-composed animated scene. It was stunning and it made me feel exactly what I felt in 1986 watching Luxo Jr. That was the first time I watched a computer-animated 3D character take a breath and seem, against all reason, to have life. It left me in awe.

Later that day, I received a text from an artist I've known for thirty years, 350 miles to the south, in the city where I spent most of my career. After seeing a similar video, she texted: "Is this the end of us?" My answer was, "Certainly not.”

I have spent the better part of the last decade in Silicon Valley, but the heart of my career has been in Hollywood. Being deeply connected to both worlds means I have deep loyalties to each and a responsibility to speak honestly to both.

In 2023, I said that these new AI tools would cut the time and cost of producing world-class animation by as much as ninety percent within three years. Some colleagues were alarmed, many were furious.

There is growing fear and resistance surrounding AI within the creative community. I deeply understand it, because I've spent countless hours walking through animation studios watching gifted artists bent over their desks, rebuilding a single second of film for the tenth time because the ninth version wasn't quite right. I've sat in screening rooms where four years of people's labor played out in minutes, and I knew the name of every person that had spent countless hours bringing those images to life. The creative process is a calling, there's really no other way to describe it. From the outside some see resistance. From the inside, it is love.

People do not fight this hard for things they don't care about. The pushback coming out of Hollywood represents the collective effort of people who are deeply passionate about their craft.

Is History Repeating Itself?

The history here is more complicated than either side may realize. In 1906, the most famous composer in America, John Philip Sousa, published an essay titled “The Menace of Mechanical Music." He warned that the phonograph would become "a substitute for human skill, intelligence and soul."

Sousa's fight was not really about the machine, it was about money. The machines were playing his compositions, and the men who built them weren't paying him a cent. His campaign helped create the Copyright Act of 1909. He did not stop the technology. He changed the terms under which it could use his work.
A hundred years ago, sound came to the movies. We remember it now as a miracle, and it was. What we forget is who paid for it. Before sound, tens of thousands of musicians made their living in the orchestra pits of movie houses, scoring every film live, every night, in towns all over the world. When the soundtrack arrived, the work of one composer and one orchestra was recorded for a film that went into thousands of theaters. The union fought back with everything it had, taking out newspaper ads across the country warning against the menace of "canned music," one of them showing a mechanical man tearing the strings out of a harp while an angel wept.

They were not fools, and they were not Luddites. They were right. Those pit jobs did not come back. And yet (this is the part we have to be brave enough to admit), sound gave us the movie musical, the modern score, sfx, sound design, audio engineering, and an art form vastly larger than the one it disrupted. And it helped keep Hollywood in the forefront of world entertainment for the rest of the century and into the next. The loss was real. And yet the art form expanded.

This is a story that has been told over and over again. To resist technology is to risk irrelevance. Just look at Kodak or Blockbuster. To embrace technology is to open doors of new possibility. Just consider Apple and Netflix.

What I Learned From Walt Disney

In the mid-1980s, I was tapped to lead Disney's animation division at a moment when the studio was at an inflection point. Animation wasn't just another business unit. It was the soul of the company, a medium revered because of Walt's genius and his passion. But the production system was cumbersome and unforgiving. A single movie was 125,000 individual hand-drawn and painted cels, photographed one frame at a time. Every revision carried a cost measured in months. These degrees of difficulty shaped the kinds of stories we could tell.

We found our way forward in an unexpected place: Walt himself. The Disney archives held astonishing recordings of Walt explaining his creative process. His own writings. His notes and storyboards. Work product captured at every stage of his process. This was truly a gift. Listening, reading, sitting with the work itself, we heard him talk about character, about emotion, about how an audience feels when a character truly comes alive. He talked about making bold choices and refining a scene until it genuinely moved people. We didn't hear a word about pencils or paintbrushes. In fact, Walt was famous for being a technologist, forever hunting for state-of-the-art tools, often inventing them himself to achieve the images he saw in his head. But he never defined animation by the tools. He defined it by whether the audience believed the character. His principles were timeless. The tools were not.

That realization changed everything. We co-developed the Computer Animation Production System (CAPS) with a young Northern California company called Pixar, replacing hand-painted cels with CGI. In The Little Mermaid, the final scene shimmered with a dimensionality and light that the old process simply couldn't achieve. In Beauty and the Beast, the ballroom sequence moved with a cinematic sweep that placed the audience inside the emotion of the moment. In Aladdin, the Cave of Wonders felt vast and alive, and the Magic Carpet became an intricate, compelling character all its own. In The Lion King, the stampede carried a scale and intensity that raised the emotional stakes beyond anything we'd done before. Technology didn't diminish the craft, it expanded the canvas. It gave artists more room to create.

A decade later, the canvas expanded again. When Disney released Pixar's Toy Story, it wasn't simply a technical milestone. It was proof that a fully computer-animated film could carry real emotional weight, that it could make audiences laugh, cry, and believe. At DreamWorks, we made the difficult decision to sunset hand-drawn animation and become a fully computer-animated studio. It was the right thing to do, but it was not without pain. It cost talented people their place in an industry where they had worked their whole lives. Some made the leap to the new tools and did the finest work of their careers. Some never did.

Tools are never the point. The instruments change with every generation. What endures is taste and imagination. The magical ability to make an audience feel. One of the greatest storytellers of our generation, George Lucas, succinctly captured the eternal essence of this issue: “It’s not the how, it’s the why.”

A Distinction With a Difference

I asked one of the leading AI models a question that has been challenging me for months. What is the difference between reasoning and creating? Its answer changed how I think about almost everything happening in this industry. It said . . .

Reasoning and creating are two distinct cognitive modes, though they also work together. Reasoning is fundamentally evaluative and analytical. It operates on what already exists: facts, premises, evidence. It moves toward a conclusion that was in a sense already implied by the input. Reasoning is constrained by logic and truth. Its goal is to arrive somewhere correct, not to invent somewhere new.

Creating is fundamentally generative. It produces something that didn't exist before. And crucially, there's no single right answer waiting to be found. A blank page has infinite valid responses. Creation involves choices that can't be fully justified by logic alone. Taste, intuition and vision fill the gap where deduction runs out.

Reasoning is what Silicon Valley has been perfecting. Creating is what Hollywood has been practicing for more than a century. AI today operates almost entirely on the reasoning side of the line. It can deduce, evaluate, optimize, and pattern-match brilliantly. And while it can create, there is a real distinction to being creative. What it doesn’t yet have is those things that make us human: empathy, devotion, serendipity, the kind of creativity that comes from a person trying to say something only they could say. When the bot generates a piece of art, it is not trying to communicate anything. It is statistics, not soul; it is emulating things that have been done. By contrast, human creativity isn’t about repeating patterns of zeros and ones; it is about doing something new.

One day, AI may close this gap. Three years ago, the leaders building AI would have called what they are achieving today, improbable, if not impossible. Impossible is no longer improbable.

Today, the line between reasoning and creating is real. Even the leading technologists acknowledge we are not there yet. There is no scientific path to crossing this divide that anyone in the field can articulate today. Understanding that gap is where we will find common ground.

A Path Forward

In 2016, I closed one chapter in Hollywood with the sale of DreamWorks and opened another in Northern California, co-founding WndrCo. We’ve backed more than 50 founders building the next generation of technology and watched how breakthroughs in Silicon Valley emerge, first as experiments, then as platforms, and finally as infrastructure that reshapes entire industries. It's worth remembering that the last great revolution in animation also came from the north. Pixar was a Northern California company, forged not in the conventions of the Hollywood studio system, but in the technological breakthroughs of Silicon Valley. I've spent years on both sides of this bridge. For sure, I don’t have all the answers (take Quibi, for one!). But, from my past and present vantage points of my long career, here is what I see . . .

Brilliant people in Northern California building this technology have made something extraordinary. They have earned the right for the rest of us to be, if not believers, at least optimistic that what comes next will be remarkable. But they have not made an artist. The tools are powerful, but they are not what makes a story matter. That knowledge lives 350 miles to the south, inside people whose life's work has informed the very models you are building. The right path forward includes them by design, with credit, with consent, and with compensation. Build this with the storytellers. Not on top of them. Taste is not something that can be synthesized, it is uniquely human.

At the same time, Hollywood needs to accept that AI is not going away. The energy they are spending trying to make it disappear is energy they are not spending deciding the terms on which it will exist. And the terms are everything. The north needs something from it that they cannot build and cannot buy: creativity. The kind that takes a blank page and conjures a single right answer where there was none and has held audiences for a century. Without it, the most powerful reasoning engine ever invented will still be missing the only thing that makes a story worth telling.

The artists who learn to wield these new instruments will do things the engineers never dreamed of. They always have. Edison invented the motion picture but made terrible movies. It took Chaplin, Lloyd, Keaton and so many others to make movies emotional. Now, the canvas is about to expand yet again. We should decide now that we intend to paint on it.

There are so many valuable lessons in history. This has happened many times before, and it was never settled by the technology. It was settled by the terms. Sousa did not stop the phonograph; he helped write the law that made sure composers got paid. And two years ago, when the writers and the actors walked out, they were fighting for the very things Sousa was fighting for in 1906. Consent, compensation, the basic recognition that human creative work has a price that must be paid. The terms of that fight are still being negotiated, but the principle is older than any of us.

The tools-versus-no-tools argument is a trap. First, we must all agree that there should be terms. Then we can have the crucial debate about what fairness requires.

What I Learned From Steve Jobs

Years ago, Steve Jobs said, "It's in Apple's DNA that technology alone is not enough. It's technology married with the liberal arts, married with the humanities, that yields us the result that makes our hearts sing." He was describing a device. But he could just as easily have been describing this tale of two cities.

What I See Coming Soon

As the barriers and the costs come down, more films will get made, not fewer. Studios will get to take more risks. There will be more seats at the table, and very soon entirely new forms of storytelling. In the 1980s, animation was dismissed as a niche corner of the business. Today it is one of the most beloved and profitable forms of storytelling in the world. In live action, filmmakers like Steven Spielberg, James Cameron and Peter Jackson embraced new visual tools not as shortcuts, but as instruments, and expanded cinema in the process. Every time storytelling has met a genuine technological shift, from synchronized sound to color to computer animation, it has redefined the boundaries of the medium and grown larger in the process.

Assuredly, I don’t have all the answers, but I am confident that the creative opportunities will expand yet again. How we come through this is a choice. The north has the new tools. The south has the creative soul. The best future will draw on the best of both worlds.

[Rick Heitzmann @rick]

current state of the venture markets ... very thoughtful by @venkyganesan

[Venky Ganesan @venkyganesan]

A few thoughts on the current state of venture capital.

When the Music Is Playing

In July 2007, a few weeks before the credit markets seized up, Chuck Prince, then the CEO of Citigroup, gave an interview to the Financial Times. The line everyone remembers is this one: "As long as the music is playing, you've got to get up and dance." He was mocked for it for years afterward, and he lost his job a few months later. But I have come to think he was saying something honest. He wasn't claiming the music would play forever. He was admitting that he couldn't sit down while it was still going, and neither could anyone else in his seat.

I've been thinking about that quote a lot lately, because right now is the most disorienting period in venture capital I can remember, and I have been doing this for a while.

Here is what makes it disorienting. It's not that things are bad. Some things are spectacular. We have companies in our portfolio growing faster than anything I have seen in my career, and I don't say that lightly. At the same time, we have companies with no revenue, no product, and a founding team you could fit in a conference room raising billions of dollars at valuations of $10 to $50 billion. Both of these things are true at once, and if you try to reason about them with the same framework you will drive yourself crazy.

Two ideas have helped me make sense of it. Neither is mine.

The first is reflexivity, which George Soros has been writing about since the 1980s. In most of life, perception follows reality: the weather is what it is, and your opinion of it changes nothing. In markets, it runs the other way too. Prices change what participants believe, and what participants believe changes the prices. The feedback loop can run for a long time, and while it's running it looks exactly like progress.

Here is how reflexivity is playing out in AI. Full disclosure: Menlo is an investor in Anthropic, so read the following with that in mind. People watched a frontier lab go from a $4 billion valuation to $18 billion, then $60 billion, then $180 billion, then $380 billion, and now something close to a trillion. They drew the obvious conclusion: that is what a neo lab looks like. So the next neo lab gets priced off that path, not off anything it has built. Then it gets marked up in a subsequent round, and the markup itself becomes the proof. Look at Thinking Machines. Look at Reflection. At that point valuation has stopped being an output of the metrics and has become the metric. Nobody is discounting cash flows. They are discounting the last round.

Soros is very clear about one thing, and it's the part people skip: you cannot know when or how a reflexive process ends. You only know that it does. Every one of them has.

The second idea is Chuck Prince's, and it explains why smart people keep dancing even when they can see the loop for what it is. As far as I can tell, there are two groups on the dance floor.

The first group got in early. Firms like ours were in some of these AI companies before the numbers got silly, and the paper gains are enormous. When you are sitting on gains like that, you start to feel like you're playing with house money. I have been around long enough to know that house money is the most dangerous kind, because you don't respect it the way you respect money you had to earn.

The second group missed the early rounds and knows it. Their LPs know it too. So they are trying to make up for lost time by writing very large checks very late, which is the one strategy almost guaranteed to turn a missed opportunity into a real loss.

House money on one side, FOMO on the other, and reflexivity feeding both. That's the whole story. Everyone has a reason to keep dancing, and the reasons are different, which is why nobody can talk anyone else off the floor.

So what do you do? The instinct in our business is to answer with company identification: just pick the right neo lab and you'll be fine. I think that's the trap. When price has become the signal, being right about the company is not enough, because you can be right about the company and still be wrong about the price by a factor of ten. The public-market investors I admire figured this out a long time ago. They spend as much time on how much to own as on what to own.

The winners in venture over the next decade will be the firms that treat portfolio composition and position sizing as seriously as they treat sourcing. How much of the fund is in companies whose valuation rests on the last round rather than on revenue? What happens to the portfolio if the reflexive loop breaks next year instead of in five? Those are not exciting questions. They are the ones that will matter.

The music will stop. It always does. Dance if you must, but know where the chairs are.

[Adam Nelson @adamn]

Compute has plenty of prices, but it doesn't have a Price.

Ask five vendors for an H100 hour and you'll get five quotes. Same silicon. The market clearing the largest infrastructure buildout in history still runs on Slack and handshakes.

Thrilled to co-lead @LiquidCompute's $15M seed with @ChemistryVC to build the financial infrastructure for this market.

[Rick Heitzmann @rick]

The best gift for your children - an internal locus of control or, in other words - agency. 💯

[The Economist @TheEconomist]

If you could bestow any quality on your children, which one would you pick? Great intelligence? Much greater respect for their parents? One economist has an unusual answer

[Rick Heitzmann @rick]

What are the Staten Island pizza must trys?

[Ilir 🍕 @IlirSela]

The best pizza in New York City is on Staten Island

[Rick Heitzmann @rick]

Important framework

[Matthew Harbaugh @themattharbaugh]

Michael Mauboussin on the 6 forms for increasing returns

[Rick Heitzmann @rick]

@villi Momentum investing is a cyclical business

[Massimo @Rainmaker1973]

Today, two firefighters were seen running across the Mackinac Bridge carrying heavy gear and American flags. A heartfelt tribute to the 343 fallen first responders from the NYFD on 9/11,

[mark pincus @markpinc]

Amazing story. Must read for breakout consumer ai