Venture capital (VC) giant Andreessen Horowitz (a16z) is scaling back its high-profile push into the UK crypto market, as reported by The Financial Times, to refocus its efforts on the US under President Donald *****’s administration.
The firm, which opened its first office outside the US in London in 2023, had touted its expansion as a significant commitment to the UK’s crypto industry.
However, two sources with knowledge of the firm’s discussions revealed that a16z has recently signaled to UK entrepreneurs and policymakers that it plans to reduce the time and resources allocated to its British operations.
The pivot comes as the ***** administration takes a crypto-friendly stance. On Jan. 23, the president signed an executive order to promote digital assets in the US and explore developing a national digital asset stockpile.
Sriram Krishnan, initially appointed to lead a16z’s UK operations, stepped back from his London-based role last year and recently joined the ***** administration, further underscoring the firm’s shift in priorities.
Founders Marc Andreessen and Ben Horowitz have also emerged as supporters of *****, advising him on technology policy.
Back to the US
Andreessen Horowitz’s London office, which opened with fanfare and endorsements from then-Prime Minister Rishi Sunak, was seen as a vote of confidence in the UK’s status as a global fintech hub.
Sunak described the firm’s arrival as a testament to the UK’s “world-class universities and talent” and its “strong competitive business environment.”
The firm has invested in several UK-based crypto companies, including Arweave, Aztec, and Improbable, but many of these deals were led from its US headquarters.
Chris Dixon, who leads a16z’s crypto investments, had praised London as a “major financial hub” and a “very attractive place for people to live” during the firm’s initial UK expansion.
However, recent conversations with local entrepreneurs suggest that the firm is increasingly reducing its London presence to occasional visits from US-based partners.
Andreessen Horowitz has $43 billion in committed capital. According to data from DefiLlama, the VC fund has nearly 200 deals related to crypto firms, with a preference for teams building infrastructure projects.
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