US VC big Andreessen Horowitz — which has about $35 billion in property underneath administration — is to open its first (sure, the first) international office in London, led by one of many agency’s basic companions, Sriram Krishnan. The office will give attention to supporting the event of crypto, blockchain applied sciences and related web3 startups. a16z has dedicated $7.6 billion to crypto startups globally.
Chris Dixon, who leads a16z’s crypto investments, mentioned: “London is a major financial hub, it’s a major tech hub and frankly it’s a very attractive place for people to live. You just need to get it to a critical mass to really get it going and we’re hoping that we can become a part of that and nudge [London] into being a more active hub of technology.”
His feedback might come as a slight shock to the quite a few VCs and unicorns which have exploded from the town within the final 15 or so years. That mentioned, he mentioned the choice got here after a “productive dialogue” with the U.Okay. prime minister, HM Treasury, U.Okay. policymakers, and the Financial Conduct Authority.
The transfer comes at a time when the SEC has been cracking down on the crypto trade, suing cryptocurrency exchanges Coinbase and Binance for allegedly breaching its guidelines. London’s lengthy historical past within the finance world, giant fintech centre and softer regulatory method to crypto has virtually definitely performed into a16z’s considering on this strategic transfer.
Dixon mentioned the UK’s “thoughtful approach” to crypto contrasted with the authorized uncertainty within the US, though the agency reaffirmed its commitments to US crypto corporations. “Our assessment is the UK is ahead of the curve and instituting [crypto] policies that will eventually becoming a global standard,” he added.
The UK authorities has already made noise about making a extra hospitable local weather for web3 in comparison with the US, eager as it’s to reestablish London as a fintech centre after the lack of a lot EU-based finance enterprise.
London has misplaced public listings, blocked mergers, and been criticised by exiting entrepreneurs resembling Monzo founder Tom Blomfield, whereas the enchantment of rival European capitals, resembling Paris, has grown. According to VC agency Atomico, the UK has additionally suffered a 57 p.c drop in tech funding this 12 months, the sharpest decline amongst huge European markets, in contrast with the first half of 2022.
However, the UK seems to be on a mission to draw crypto companies, growing a regulatory framework for digital property buying and selling that falls nearer to requirements for securities resembling shares and bonds than within the US.
Rishi Sunak, UK prime minister, mentioned in a press release that he was “thrilled” at Andreessen Horowitz’s arrival, which he mentioned was “testament to our world-class universities and talent and our strong competitive business environment.” Sunak added that a16z’s growth was right down to having the “right regulation and guardrails” to “foster innovation.”
Andreessen Horowitz is, nevertheless, fairly late to the European social gathering, coming over a 12 months after Sequoia arrange its London office, amongst different US corporations.
In addition to the brand new office, a16z has additionally introduced its plan to launch a brand new “Crypto Startup School” (CSS) program in London within the spring (March to June) of 2024.
In a speech to open London Tech Week, Sunak additionally added that he wished the UK to be the “geographical home of global AI safety regulation.” He plans to determine a world AI watchdog in London.
Separately, Gensyn, a supplier of blockchain-based computing sources for AI secured a $43 million, Series A funding spherical, led by a16z.