a16z Sets United Kingdom As First Overseas Location, Cites “Outcomes-Based Regulation”
Venture capital firm Andreessen Horowitz (a16z) has made a significant move by choosing London as the location for its inaugural office outside the United States. A16z cited the U.K. government’s commitment to fostering decentralized startups as a key factor in its decision.
Based in Menlo Park, California, A16z plans to establish the London office later this year under the leadership of Sriram Krishnan. This strategic move will enable the firm to make investments in the thriving crypto and startup ecosystems in the U.K. and Europe, as announced on Sunday.
A16z’s decision to expand to London follows its recent investments in several U.K.-based companies. One notable investment is the firm’s leadership in a $43 million Series A funding round for Gensyn, an AI platform provider specializing in blockchain-based computing resources.
The move aligns with the U.K.’s evolving regulatory landscape for cryptocurrencies. The government aims to bring crypto within the ambit of existing financial services regulations, a stance supported by the All Party Parliamentary Group (APPG) for crypto assets. However, the House of Commons Treasury Select Committee disagrees, suggesting that crypto should be treated as gambling, which has sparked criticism from industry insiders.
“While there is still progress to be made, we have confidence that the U.K. is on the right track to becoming a global leader in crypto regulation,” stated A16z. “The U.K. boasts more ‘unicorns’ than Germany, France, and Sweden combined, houses some of the world’s largest financial markets and pools of capital, and boasts highly sophisticated, world-class regulators.”
U.K. Prime Minister Rishi Sunak warmly welcomed A16z’s decision, emphasizing the importance of embracing innovative technologies like Web3, powered by blockchain, to stimulate startup growth and bolster the economy.
“While there’s still work to do, I’m determined to unlock opportunities for this technology and turn the
UK into the world’s Web3 centre,” Sunk said in a statement.
A16z, however, said it will remain deeply committed to its investments in the United States, adding that it is “committed to working with U.S. policymakers and regulators to push for more regulatory clarity for crypto startups here.”
In its State of Crypto 2023 report published earlier this year, the venture capital firm emphasized that the United States was losing its advantage in Web3. The fraction of crypto developers based in the US declined by 26% between 2018 and 2022 when compared to the rest of the globe.
“Banning new business models or technologies undermines American values and drives innovation and jobs elsewhere,” the report states. “Legal businesses and their customers deserve access to financial services and lawful protections, from banking relationships to data privacy.”
The emphasis on regulation coincides with a crypto crackdown in the United States, where regulators such as the Securities and Exchange Commission and the Commodity Futures Trading Commission have increased their scrutiny of digital asset enterprises.
Information for this briefing was found via Coindesk and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
