Andreessen Horowitz Expands to London Amid Hostile U.S. Crypto Environment
Venture capital firm Andreessen Horowitz announced its first non-U.S. office and branch of a16z crypto fund in London, UK on Sunday. This move came as a response to the increasingly hostile environment towards crypto in the U.S which includes a lawsuit by the SEC against Coinbase, Andreessen Horowitz’s one-time portfolio company. Chris Dixon, the influential general partner at a16z and leader of its crypto fund, believes the Biden administration is trying to kill off the crypto technology in the US. He stated in an interview with Fortune that the UK “just has all the ingredients that you want to see for an emerging tech hub.”
Gensyn Investment and Blockchain-Based Marketplace Creation
The London office, set to launch later this year, will be led by Sriram Krishnan, a general partner at a16z. The venture firm also announced a $43 million investment in Gensyn, a U.K.-based startup that combines crypto and AI. Dixon referred to the project as the “Airbnb for GPUs” that creates a blockchain-based marketplace for companies seeking computing power. Andreessen Horowitz has previously invested in other U.K.-based crypto firms, including Arweave, Aztec, and Improbable.
Relation with Universities and Foster Talent in Crypto Space
Andreessen Horowitz also plans to collaborate with universities to establish blockchain clubs and foster crypto talent. The Crypto Startup School accelerator program is also aimed at supporting entrepreneurs to build their Web3 startups, which received mentorship and investment from a16z. Over 8,000 applicants and 26 companies had recently completed the program.
UK as a Safe Haven and Global Leader for Crypto
The expansion to London signals Andreessen Horowitz Crypto’s confidence in the UK becoming an emerging crypto powerhouse. UK lawmakers, led by Prime Minister Rishi Sunak, are pushing to regulate the industry. Sunak, a proponent of crypto and blockchain as finance minister, intends to cement the UK’s place as a science and tech superpower by embracing new innovations like Web3, which is powered by blockchain technology. Brian Quintenz, the head of policy at a16z crypto, said that the UK is considering a regulatory regime that resembles a draft bill recently released by the Republican chairs of the House Financial Services and Agriculture committees.
Conclusion
Despite the expansion overseas, Dixon stated that Andreessen Horowitz remains a US firm, expressing optimism that the US lawmakers would change their minds on the need for crypto regulation, as they did with early internet legislation. He stated that the crypto industry would continue, and he believes that the US would eventually “get it right.”
GIPHY App Key not set. Please check settings