Andreessen Horowitz (a16z) has determined to close down its London workplace, retreating from its much-publicized UK enlargement to focus on the US crypto market.
The agency’s determination is basically based mostly on the pro-crypto regulatory actions being established underneath Donald Trump’s administration.
a16z crypto is Heading Again to the US Market
The enterprise capital agency entered the UK market in 2023 with its first workplace exterior the US. This transfer was motivated by the extreme regulatory pressures and crackdowns on crypto underneath the earlier administration.
Nonetheless, the agency has knowledgeable native entrepreneurs and policymakers that it’s going to not dedicate vital assets to the area. Its London workplace is about to shut fully.
Sriram Krishnan, the companion initially appointed to steer the UK initiative, left his function in London final 12 months and not too long ago joined the Trump administration.
Additionally, the agency’s founders, Marc Andreessen and Ben Horowitz, have aligned themselves with Trump, providing recommendation on know-how coverage.
“We’ve got chosen to deal with the US given the brand new administration’s sturdy coverage momentum and can subsequently be closing our UK workplace. This doesn’t change our confidence within the UK’s rising function in crypto and blockchain. We’ll proceed to put money into nice entrepreneurs regardless of the place they’re on this planet, together with the UK,” wrote Anthony Albanese, COO of a16z Crypto.
The choice comes after President Trump signed his first crypto-related government order yesterday. The order established a brand new Working Group for the digital property market. The working group can even assess the potential scope to create a nationwide digital asset reserve.
On the identical time, the SEC has revoked its controversial SAB 121 coverage, making it simpler for Banks to custody Bitcoin.
These main pro-crypto actions throughout the administration’s first week have been seemingly a catalyst behind a16z’s determination to deal with the US.
Andreessen Horowitz’s London workplace opened two years in the past with vital consideration. On the time, the agency, managing $43 billion in dedicated capital, emphasised its investments in UK crypto corporations resembling Arweave, Aztec, and Inconceivable.
“Because the US turns into extra business-friendly once more, different international locations should work more durable to retain its enterprise attractiveness. a16z cuts UK crypto plans because it shifts focus to Trump-era US alternatives,” Binance founder CZ wrote on X (previously Twitter).
The agency stays closely concerned in shaping US crypto insurance policies. In November, a16z crypto dedicated $23 million to Fairshake PACs to help bipartisan efforts for crypto regulation forward of the 2026 midterms.
Earlier in April 2024, a16z introduced $7.2 billion in funding for tech investments, together with gaming and infrastructure. This highlights its rising deal with the gaming trade with the launch of a devoted Video games Fund.
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