Andreessen Horowitz, commonly known as a16z, has explicitly and adamantly denied those local media reports. These reports indicated that the venture capital firm plans to launch a new office in India. The firm called the coverage “totally fake news,” all of this while industry insiders speculated that the firm was pivoting in its investment strategies throughout the territory.
According to Indian media reports, a16z would be the first venture capital firm to set up a permanent base in Bengaluru. They plan to invest up to $500 million in Indian startups, raising hackles. The firm’s plans are ambitious, but it has yet to make a single big bet in India since supporting crypto exchange CoinSwitch. In 2021, the two joined a $260 million funding round for that startup.
Anish Acharya, general partner at Andreessen Horowitz, answered the direct question of the rumors right here, saying,
“As much as I adore India and the many impressive founders+investors in the region, this is entirely fake news!”
In a recent talk at Stanford Graduate School of Business, co-founder Marc Andreessen acknowledged the appeal of investing in emerging markets like India. He recognized the appeal of investing in the startups from these territories. He acknowledged that creating a single market is difficult for a venture fund looking to scale its investments across multiple countries.
Andreessen Horowitz has become one of the most powerful players in Silicon Valley. This in addition to the fact that earlier this year, the firm shuttered its London office, which had been open just 18 months. The closure came after a global strategic re-evaluation and was aided by increased positive regulatory shifts in the United States. Indeed the U.K. government chased the firm for five years. Finally, in 2023, the practice opened its London office.
The decision not to pursue an office in India aligns with Andreessen Horowitz’s broader strategy, as it has not prioritized the Indian startup ecosystem compared to other U.S. venture firms like Accel, General Catalyst, and Lightspeed Venture Partners. The firm is understandably reluctant to set a base in India. This decision highlights the evolving challenges of international investment strategies and assessments of market entry.
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