According to a recent report, a16z, a venture capital firm known for its large fund sizes, is developing a new strategy to potentially increase its deal flow. The firm is creating a fund-of-funds to invest in smaller venture capital pools, which will give it visibility on the next generation of breakout tech companies. The trend of large funds attempting to get involved in earlier-stage companies is not new, and a16z's effort is logical if it pans out as expected.