Andreessen Horowitz (a16z) has announced plans to close its London office and refocus its efforts on the US cryptocurrency market following the re-election of President Donald Trump.
In 2023, a16z made headway into the London market when it opened its first office outside the United States in the UK. At the time the firm made this move, the US was cracking down on digital assets and forcing firms like Andreessen Horowitz to explore alternatives like the UK.
During its time in the UK, a16z invested in several UK-based crypto companies, including Arweave and Aztec.
Sriram Krishnan, led the UK effort previously before the election, and he stepped away from his role last year.
Andreessen Horowitz (a16z) returns to the US market
a16z becomes the latest company to re-evaluate its position and strategy following the November US presidential elections that saw Donald Trump return to office. While the firm pulled the plug on its UK expansion, it appears to be going all-in on the United States crypto market.
President Trump has already demonstrated his strong support for the digital assets market in the early days of his presidency, delivering on his campaign promises.
The president has signed executive orders to make cryptocurrencies an integral part of the US economy, with committees set up to propose policies that are expected to promote the use and development of cryptocurrencies in the country.
The President and First Lady even launched their own memecoins days before the inauguration.
These recent developments appear to be enough to convince a16z to refocus its efforts on the US, where it sees more investment opportunities.
Marc Andreessen and Ben Horowitz, the firm’s founders, have become supporters of Trump, while advising him on tech policy, Financial Times reports.
The exit from the UK market
When Andreessen Horowitz opened its London office two years ago, the firm received a warm welcome from the then Prime Minister Rishi Sunak, saying he was “thrilled” at the group’s arrival. The prime minister also called the move a testament to the talent and competitive business environment in the UK.
The firm was also quite satisfied with its move to the United Kingdom. Two years ago, the leader of Andreessen Horowitz’s crypto investments said in an interview with the financial times; “London is a major financial hub, it’s a major tech hub and frankly it’s a very attractive place for people to live.”
Now that the firm is exiting stage left, its ambitions and impacts are being downplayed. “They were never really here,” one UK official said. “The UK [Andreessen Horowitz] investments I know of were all led from the US.”
Andreessen partners are not opposed to dealing with companies in the UK, but their operations will be focused in the US going forward.
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Source: https://www.cryptopolitan.com/andreessen-horowitz-a16z-withdraw-from-uk/