American venture capital firm Andreessen Horowitz plans to restructure by registering all of its employees as qualified financial advisers.
Andreessen Horowitz is a Silicon Valley company that specializes in investing primarily in technology and financial services startups and has invested around 1.5 billion euros in seven funds. The company told Forbes that it would register its 150 employees as a financial advisor, thereby completely relinquishing its venture capital status.
About the restructuring
The restructuring is designed to allow Andreessen Horowitz to make riskier bets on certain lines of business, including digital currencies. “If the company wants to invest $ 1 billion [around $ 890 million] in cryptocurrency or tokens, or wants to buy unlimited shares in public companies or other investors, it can easily do that, and it will probably do it for other companies Feeling that they have tied a hand behind their back, “the company continues.
Andreessen Horowitz is said to have this spring abandoned his exemptions in connection with venture capital and have registered as a financial adviser. This move required that its investors were forbidden to speak openly about their portfolios or the performance of their funds in public. There are also other conditions, such as the examination of each individual employee.
Therefore, the partners of the company can now easily participate in business together
An example of this is a Blockchain startup for home buying, where a real estate expert works with a crypto currency expert on a deal.
Last September, Andreessen Horowitz invested the equivalent of 13.3 million euros in the blockchain startup MakerDAO (MKR). Andreessen Horowitz acquired via its investment fund a16z 6 percent of all outstanding MKR tokens. The purchase was designed so that a16z MKR and the Dai Credit System can manage. It will become “the first” decentralized autonomous Stablecoin organization.
Specific cases
In June of last year, Andreessen Horowitz hired Katie Haun as the first female wholly-owned partner to manage the company’s newly established € 267m cryptocurrency fund. The company’s crypto-fund will invest in a number of companies. These include Blockchain projects or Initial Coin Offerings.