Andreessen Horowitz — a Silicon Valley company specializing in investing mostly in technology and financial services startups, having raised $1.7 billion across seven funds — told Forbes that it is registering their all 150 employees as financial advisors, which renounces the company’s status as a venture capital firm entirely.
The restructuring will purportedly enable Andreessen Horowitz to take riskier bets on certain business areas, including digital currencies. “If the firm wants to put $1 billion into cryptocurrency or tokens, or buy unlimited shares in public companies or from other investors, it can. And in doing so, the thinking goes, it’ll again make other firms feel like they have one hand tied behind their back,” it further explains.
This spring, Andreessen Horowitz reportedly gave up its venture capital exemptions and registered as a financial advisor. The move required a ban on its investors speaking plainly about their portfolios or funds performance in public, among other things like auditing each employee.