U.S. venture capital firm Andreessen Horowitz is restructuring by registering all of its employees as qualified financial advisors

American venture capital firm Andreessen Horowitz is restructuring by registering all of its employees as qualified financial advisors, Forbes reported on April 2.

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.

At the same time, the company’s partners can now openly share deals in cases like a blockchain startup for home buying wherein a real estate expert tag-teams a deal with a cryptocurrency expert.

Also read: U.S. crypto exchange Coinbase has revealed details of its insurance coverage for its hot wallet crypto holdings, covering a $255 million limit via a Lloyd’s of London broker

Source: https://cointelegraph.com/news/andreessen-horowitz-restructures-registering-entire-staff-as-financial-advisors