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Andreessen Horowitz, a $35 billion US VC firm, will open its first international office in London, led by general partner Sriram Krishnan. The office will promote crypto, blockchain, and web3 startups. a16z invested $7.6 billion in crypto startups worldwide.
“London is a major financial hub, a major tech hub, and frankly it’s a very attractive place for people to live,” said a16z crypto investment leader Chris Dixon. You just need a critical mass to really get it going, and we’re hoping we can become a part of that and nudge [London] into being a more active technology hub.”
VCs and unicorns that have emerged from the city in the past 15 years may be surprised by his comments. He said the decision followed a “productive dialogue” with the U.K. prime minister, HM Treasury, policymakers, and the Financial Conduct Authority.
The SEC has been cracking down on the crypto industry, suing Coinbase and Binance for alleged violations. London’s long history in finance, large fintech center, and softer crypto regulations likely influenced a16z’s strategic move.
Dixon contrasted the UK’s “thoughtful approach” to crypto with the US’s legal uncertainty, but the firm reaffirmed its commitment to US crypto companies. “The UK is ahead of the curve and instituting [crypto] policies that will eventually become a global standard,” he added.
After losing so much EU-based finance business, the UK government wants to reestablish London as a fintech hub and has talked about making web3 more welcome than in the US.
London has lost public listings, blocked mergers, and been criticized by exiting entrepreneurs like Monzo founder Tom Blomfield, while Paris has gained popularity. Compared to the first half of 2022, tech investment in the UK has dropped 57 percent, according to Atomico.
However, the UK is developing a regulatory framework for digital asset trading that is closer to securities like stocks and bonds than in the US to attract crypto businesses.
UK prime minister Rishi Sunak called Andreessen Horowitz’s arrival “thrilled” and a “testament to our world-class universities and talent and our strong competitive business environment.” Sunak said the “right regulation and guardrails” to “foster innovation” helped a16z grow.
Andreessen Horowitz joined the European party over a year after Sequoia and other US firms opened London offices.
In addition to the new office, a16z will launch a London “Crypto Startup School” (CSS) program in March–June 2024.
Sunak also said he wanted the UK to be the “geographical home of global AI safety regulation” in a speech to open London Tech Week. London will host a global AI watchdog.
Gensyn, a blockchain-based AI computing resource provider, raised $43 million in a16z-led Series A funding.
