Andreessen Horowitz Switches from Venture Capital to Advising
One of Silicon Valley’s most prolific venture capital firms, Andreessen Horowitz, has switched to investment advising and no longer considers itself a VC.
Originally reported by Forbes, the ten year old firm filed in March to become an RIA, or registered investment advisor, which gives it more flexibility when maintaining different currencies, such as cryptocurrency. VC’s do not have the ability to invest outside of the usual startup landscape, and the landscape for VC’s has become more crowded as firms jockey to fund unicorn and IPO minded startups. AH will have to wait 45 days for the Securities and Exchange Commission to sign off on the change.
In 2018, AH was launching a $300 million crypto fund, as part of its move to be a player in crypto currency funding. This played a role in AH’s decision to switch to investment advising from being a venture capital firm.
The firm will continue to invest in startups, even with the change in focus. Forbes reports that AH is launching a new fund that will have $2-2.5 billion in the bank.
AH was launched my Marc Andreessen and Ben Horowitz in 2009. Since then it has help move numerous startups to IPO status, including Lyft, Airbnb, Penterest and Slack.