Andreessen Horowitz is blowing up the venture capital model (again) by Alex Konrad

Title - “”

TL;DR - Andreessen Horowitz is renouncing its venture capital status to free up its ability to pursue riskier bets such as cryptocurrencies, potentially charting a new way forward for VC.

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Tags - notable investors, andreessen horowitz, legal issues, new models for VC

Questions addressed:

  • How are the major VCs adapting for the future?
  • What are the next trends in VC?
  • How does this change the fundraising landscape?

Summary:

  • The SEC limits investments in cryptocurrencies to 20% of traditional VC funds because they are deemed “high risk.”
  • For that reason, the firm decided to renounce its VC exemptions and register as a financial advisor.
  • The firm plans to launch more specialized funds in the future to stay competitive.
  • Current VC landscape is divided into small, specialized seed funds and larger generalist funds.
  • Recent years have seen increased pressure on traditional VC from above (e.g. SoftBank) and below (e.g. experienced angel investors).

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