Keeping up with the times and staying current, super venture capital firm Andreessen Horowitz says it will not be a venture capital firm anymore. The firm has decided to become a Registered Investment Advisor in order to be more flexible and invest in digital assets, cryptos and other new sectors. The firm filed last month to become a RIA to specifically target opportunities in cryptocurrencies since venture capital firms are pretty limited in their ability to invest in things other than traditional start-ups. Competition in the traditional venture capital sector has also heated up with competitors like SoftBanks’s Vision Fund which has, like, $100 billion to “overpay” for deals and crowd others out. So, Andreessen Horowitz obviously sees great opportunities in the crypto/digital asset sector and is willing to change its whole business model to adapt to the new world. Read more in depth below.
Bill Taylor/Fintek Capital
“Andreessen Horowitz will soon cease to be a venture capital firm, veering away from the majority of its Sand Hill Road neighbors in Silicon Valley to instead become a registered investment advisor, or RIA.
The 10-year-old firm, founded by Marc Andreessen and Ben Horowitz, filed in March to become an RIA, as it seeks greater flexibility in its investments, particularly when it comes to cryptocurrencies, said Margit Wennmachers, an operating partner at the firm. Forbes first reported on the change.
Venture capital firms are limited in their ability to invest outside of the traditional start-up landscape, a market that’s become inundated with record amounts of cash, thanks to massive funds like SoftBank’s $100 billion Vision Fund. By becoming an RIA, Andreessen can put more money into areas like crypto, which often involves the purchase of tradeable coins as opposed to equity, and can more freely allow analysts in different areas to communicate with each other, rather than being walled off…”