Andreessen Horowitz, the Silicon Valley-based venture capital giant, is planning a withdrawal from the UK crypto investment market, the Financial Times reported.
According to the report, crypto arm a16z is closing its London office, in a bid to see the venture capital firm refocus on the US crypto investment market.
A16z has announced that it will open a UK office in 2023, amid the UK government’s efforts to position the country as a crypto and blockchain hub.
UK-based crypto projects that have received support from Andreessen Horowitz include decentralized storage network Arweave, Ethereum-based zero-privacy stack Aztec, and web3 platform Improbable. Artificial intelligence-focused startup Gensyn AI also received support from the company.
Andreessen Horowitz’s move comes as the venture capital platform’s UK business partner takes on a new role. Sriram Krishnan left office in 2024 and joined President Donald Trump’s administration.
The US crypto market is bubbling with optimism after Trump’s crypto executive order added to a series of pro-crypto developments since his election victory and inauguration. Andreessen Horowitz, whose crypto investment unit has backed some of the biggest projects in the ecosystem, is looking to shift its focus back to the United States.
As the Silicon Valley company scales back its investments in the UK crypto market with the closure of its London office, it will monitor the growth potential flagged by the Trump administration.
Earlier this week, a16z Crypto published an article highlighting the changes in the United States as a “new dawn” for the Securities and Exchange Commission.
The article notes that the SEC has the opportunity to take key steps to establish clear regulations for crypto as well as “balancing innovation and consumer protection.” Among these measures are efforts to provide guidance on airdrops, crowdfunding rules, and custody and settlement.
