Andreesen Horowitz Just Made a Big Move for Crypto

Andreessen Horowitz, aka a16z,is the Silicon Valley venture capital firm founded by Marc Andreessen and Ben Horowitz.

That was 2009. By 2011 it was the #1 rated venture capital firm.

These guys made all the right moves. Notable investments include Skype, Facebook, Groupon, Twitter, Zynga, Coinbase, Lyft, Oculus VR, and Ripple. Recently they started a16z crypto.

a16z crypto is the crypto/blockchain arm of Andreesen Horowitz. It’s a $350M venture fund that will invest in crypto companies and protocols.

Now the firm is making another big move which bodes well for cryptos.

Detailed in Forbes, Andreessen Horowitz is restructuring by registering all of its employees as qualified financial advisors.

By going RIA (Registered Investment Advisor) Andreesen is giving itself more investing options, but at a cost.

As a VC Andreesen has faced what’s usually 20 percent cap on investments outside of traditional VC deals. That’s due to the limited partner agreements in place. That means they can only put so much money in certain investments, like cryptocurrency tokens.

As an RIA they will no longer have those limits.

The tradeoff is two-fold. First, investments have to be reported, so they lose privacy. And second, it’s more expensive to be an RIA than a VC.

So Andreesen must be confident the benefits of going RIA are much greater than the trade-offs.

I think it means they’ll be buying crypto directly… time will tell.

What do you think?

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