US VC large Andreessen Horowitz, whose property beneath administration are about $35 billion. USD, will open its first (sure, first) worldwide workplace in London, led by one of many agency’s basic companions, Sriram Krishnan. The workplace will deal with the event of cryptocurrencies, blockchain applied sciences and associated Web3 startups. a16z allotted 7.6 billion USD for cryptocurrency startups around the globe.
Chris Dixon, head of crypto investments at a16z, stated: βLondon is a significant monetary middle, it is a main expertise middle and, frankly, it is a very engaging place for folks to stay. You simply want to succeed in a essential mass to essentially take off and hopefully we will be part of that and push (London) to develop into a extra lively tech hub.
His feedback might come as a little bit of a shock to the numerous VCs and unicorns which have exploded out of the town over the previous 15 years. However he stated the choice adopted a “productive dialogue” with the UK prime minister, the US Treasury, UK policymakers and the Monetary Conduct Authority.
The transfer comes because the SEC cracks down on the cryptocurrency trade, suing crypto exchanges Coinbase and Binance for allegedly violating its guidelines. London’s lengthy historical past within the monetary world, a big FinTech hub and a extra lenient method to cryptocurrency regulation nearly actually influenced a16z’s enthusiastic about this strategic transfer.
Dixon stated the UK’s “considerate method” to cryptocurrency contrasted with authorized uncertainty within the US, though the corporate reaffirmed its dedication to US crypto firms. “In our view, the UK is forward of the curve and setting (cryptocurrency) insurance policies that can finally develop into the worldwide normal,” he added.
The UK authorities has already been clamoring for a extra welcoming atmosphere for Web3 in comparison with the US because it seems to re-establish London as a fintech hub after shedding a lot EU finance enterprise.
London has misplaced public listings, blocked mergers and been criticized by exiting entrepreneurs resembling Monzo founder Tom Blomfield, whereas rival European capitals resembling Paris have grown in enchantment. In line with VC agency Atomico, UK tech funding has additionally fallen by 57% this yr, the largest decline amongst main European markets in comparison with the primary quarter of 2022.
Nonetheless, the UK seems to be on a mission to draw crypto firms and is growing a digital asset buying and selling regulatory framework that’s extra according to the requirements of securities resembling shares and bonds than the US.
British Prime Minister Rishi Sunak stated in an announcement that he was “thrilled” by the arrival of Andreessen Horowitz, which he stated was “a testomony to our world-class universities and expertise and robust aggressive enterprise atmosphere”. Sunak added that the event of the a16z resulted in “appropriate regulation and guardrails” to “encourage innovation.”
However Andreessen Horowitz is comparatively late to the European celebration, arriving greater than a yr after Sequoia, amongst different US corporations, arrange its London workplace.
Along with the brand new workplace, a16z additionally introduced its plan for 2024. to launch a brand new Crypto Startup College (CSS) program in London within the spring (March-June).
In a speech at London Tech Week, Sunak additionally added that he needed the UK to be “the geographic location for international AI security regulation”. He plans to arrange a worldwide AI monitoring middle in London.
Individually, Gensyn, a blockchain-based supplier of computational synthetic intelligence assets, secured $43 million. USD Collection A funding spherical led by a16z.
