This is false. If anything they can get lower prices than other investors due to their prestige.
(If you're wondering why a VC would say such a thing, it's the one thing a competitor could say that could raise doubts in the minds of LPs, the people who invest in VC funds. AH's successes are obvious, so the only way to spread FUD about them with LPs is to imply that they're paying too much to get into those successful deals, and that their returns will thus be proportionately lower.)
AH is trying to get into the very few Big Deal companies that are created every year. That does probably mean they're willing to "overpay" relative to other investors to get into them, if need be. But if they pick well this is only "overpaying" in the sense that Accel overpaid for Facebook in 2005. So far they seem to be picking pretty well.
I think most VCs are just intimidated by AH's conviction. It takes guts to make the moves they've made in such a short period of time. They do big things faster than most VCs do small things.
That's ironic - I read the same article you did, and came away thinking that it was a puff piece on A16Z.
There are lots of negative things you can say about Ben, Marc and the others in the name of "Balance" - and other than saying "They are paying a lot for companies" (which isn't even an indictment on them, just a description of their strategy) - I didn't see it.
I'm surprised they didn't mention Instagram/PicPlz in the article, that was a bit of a stumble (though for honorable reasons)
This is false. If anything they can get lower prices than other investors due to their prestige.
(If you're wondering why a VC would say such a thing, it's the one thing a competitor could say that could raise doubts in the minds of LPs, the people who invest in VC funds. AH's successes are obvious, so the only way to spread FUD about them with LPs is to imply that they're paying too much to get into those successful deals, and that their returns will thus be proportionately lower.)