Boost for the city as US venture capital giant Andreessen Horowitz selects the UK as its overseas headquarters
City Secretary Andrew Griffith hailed the “fantastic news” that a US venture capital giant is opening its first international office in the UK.
Andreessen Horowitz has invested in some of the world’s biggest tech names, including Facebook, Twitter, and Skype, and is also a major backer of cryptocurrency companies.
The decision to open a UK office comes as the company looks to create a more welcoming environment for crypto and the blockchain technology behind it, amid a regulatory crackdown in the US.
But it’s also the latest sign of global companies settling on Britain as the government seeks to bolster its tech credentials – offsetting some of the recent doom and gloom over London’s status as a financial hub as businesses scramble for New York.
UK office: Andreessen Horowitz, founded by Chris Dixon (pictured), has invested in some of the world’s biggest technology names, including Facebook and Twitter
Last week, the boss of US artificial intelligence firm Palantir hailed the UK as a “bastion” of top talent after selecting it for a European headquarters.
California-based Andreessen Horowitz, which manages £28 billion in assets, said it would partner with UK universities and support the development of blockchain technologies and start-ups. It will also run a crypto startup school in London next spring.
Chris Dixon, founder and general manager of the company’s a16z crypto fund, which sets up the office, said it has become “clear that the government sees the promise of web3” – a transformation of the nature of the internet, based on blockchain.
Griffith said: “Wonderful news that Andreessen Horowitz – one of the world’s most successful technology investment firms – has decided to open their first international office in the UK.
“And part of the reason for settling in London is the strength of the UK financial sector and our balanced approach to the proposed regulatory frameworks for web3 and crypto assets.”
Dixon said, “While there is still work to be done, we believe the UK is on track to become a leader in crypto regulation.
The UK also has large talent pools, leading academic institutions and a strong entrepreneurial culture.”
Britain is also, Dixon said, home to more “unicorns” — start-ups worth $1 billion or more — than Germany, France and Sweden combined.
The positives on crypto contrast with some of the skepticism of the Financial Conduct Authority, which revealed last week that 5 million adults owned crypto assets last year, but continues to warn that those who invest should be prepared to lose all their money.
In America, the Securities and Exchange Commission has cracked down on the industry and last week filed lawsuits against cryptocurrency exchanges Coinbase and Binance for allegedly violating the rules.