Andreesen Horowitz, a venture capital firm located near Silicon Valley, has been undergoing a metamorphosis in Silicon Valley. They recently hired Kathryn Haun who is the first female general partner since Andreesen Horowitz was conceived 9 years ago. This, coupled with her previous role at the Justice Department, has instantly made her one of the most powerful investors in Silicon Valley. Second, Andreeson Horowitz is making a radical shift by reregistering as a financial adviser and renouncing their status as a venture capital firm entirely.
Kathryn was one of the Justice Department’s foremost prosecutors for Bitcoin-related felonies. Now she’s jumping ship, her goal is to find the next herd of unicorns in the crypto space. Her experience with law enforcement will also be a valuable asset in keeping the founders on the right side of the law.
Why is Andreeson Horowitz registering as a financial adviser when they’ve been doing quite well as a VC? Well, they think they’ll be able to make even more money by investing in crypto. Currently, their hands are tied when it comes to investing large amounts of cash in this industry. They believe that we’re still in the dial-up days of crypto and when combined with blockchain technology, it’s going to affect our society in ways we haven’t even begun to understand. This move will also keep them one step ahead of the competition.
The firm was started by Marc Andreesen and Ben Horowitz. Marc is the co-author of Mosaic, the first widely used web browser and co-founder of Netscape. Ben Horowitz is the co-founded of Opsware, which was sold to Hewlett-Packard for 1.6 billion in cash. He is also the author of several well-known books.
Some of their investments include Skype (sold to Microsoft for $8.5 billion), Twitter, Facebook and Groupon. They have already made some big investments in crypto. Ripple, Coinbase and OpenBazaar are a few well known projects that have been funded by the firm. Other venture capitalists have been quietly investing in crypto as well.
As the crypto space matures, we are seeing more and more businesses raise money through ICOs and STOs. Raising startup capital can be difficult with the amount of regulations in place. You also don’t have to sell shares of your company if you raise money through an ICO/STO. Investors who’ve gained enough shares in a company are able to make decisions that influence the direction of the company. These decisions are usually based on maximizing profit which may not align with the original mission of the company. Raising money via ICOs or STOs can circumvent some of these issues.
This will also allow people from all over the globe to invest in any company of their choosing. As long as you have a wallet and an internet connection (and some technical know-how in case you need to circumvent government firewalls) you can own a piece of your favorite crypto company. The US government has been careful not to be too restrictive with their regulations. They realize this technology is going to benefit the economy and its citizens. However, many ICOs have abused this liberal approach to regulation. As we see more governments and corporations get involved we are going to see this technology evolve rapidly.