Andreessen Horowitz will open an office in London and could become a crypto hub

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Andreessen Horowitz partners Marc Andreessen.

Justin Sullivan | Getty Images

LONDON Andreessen Horowitz is opening its first office outside the United States in London, the venture capital firm announced on Monday.

Andreessen Horowitz, a Silicon Valley venture capital firm that has backed leading tech companies from Airbnb to Coinbase, said it was looking to leverage what it sees as a more welcoming environment for crypto entrepreneurs in the UK. The company believes the UK will become a global leader in crypto, blockchain and digital currencies.

The US has been cracking down on the crypto industry recently, with the US Securities and Exchange Commission announcing lawsuits against crypto titans Binance and Coinbase last week. Essentially, the SEC argues that many crypto tokens should be classified as securities, which would subject them to much stricter oversight and transparency requirements.

Earlier this year, the UK also proposed its first formal crypto industry regulations, seeking to clamp down on practices following the collapse of FTX, a $32 billion crypto exchange. dollars. Many crypto investors say this would bring more clarity, especially as they face heightened uncertainty in the United States.

“The Prime Minister’s leadership is essential, but we’ve seen a wonderful openness to the promise of technology, as well as a strong interest in any regulatory regime that comes online, focused on consumer protection,” said Brian Quintenz, head of politicians at Andreessen Horowitz. , told CNBC in an interview.

“Frankly, I don’t think this current administration in the US is doing either, this is a time when the UK is moving with agility and speed, but with strength.”

Sriram Krishnan, a former Twitter employee who joined Andreessen Horowitz as a general partner, will move to London to run the company’s office there, Quintenz said.

Andreessen Horowitz also plans to launch his first crypto startup school in the UK with the aim of identifying future talent in the crypto and Web3 space. The company launched a school to mentor entrepreneurs in building blockchain and cryptocurrency businesses in 2019.

Andreessen Horowitz has been one of the most active investors in crypto and Web3, backing startups ranging from crypto-based sports collectibles trading game Dapper Labs to non-fungible token market OpenSea.

But it has felt the chilling effects of a downturn known as “crypto winter” over the past 18 months, following major meltdowns such as the spectacular bankruptcy of FTX. Andreessen Horowitz was not an investor, but several rival companies, including Sequoia, were.

The company’s commitment to opening a presence in the UK suggests long-term confidence in the crypto market, at least outside of the US.

“As far as the United States goes, there’s huge uncertainty here, that’s a nice word, there’s a lot of opportunity to create more uncertainty that hasn’t been embraced,” Quintenz said. at CNBC.

“We are seeing regulation by application that does nothing to understand the benefits of technology or to embrace entrepreneurs, innovators trying to build the next iteration.”

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