Venture capital powerhouse Andreessen Horowitz (a16z) is closing its London office, less than a year after its ambitious launch in the UK. The move comes as a surprise to many, given the firm’s stated intention to establish a strong foothold in Europe’s burgeoning tech ecosystem. The decision reflects shifting priorities and potential challenges in navigating the UK market. [Link]

Under Biden administration, the crypto world was a bit in trouble as the administration was hostile to them and to tech in general. Post Trump’s reelection, tech is much more enthusiastic and appointment of David Sachs as Crypto boss. This means the Trump admin is much more favourable to Crypto and tech in general. This move has probably made a16z decide to close its London office and focus more on US opportunities.

David Sacks will be the “White House A.I. & Crypto Czar” and lead the Presidential Council of Advisors for Science and Technology, the president-elect announced Thursday in a social media post. [link]

Albanese added:

“This doesn’t change our confidence in the UK’s growing role in crypto and blockchain. We will continue to invest in great entrepreneurs no matter where they are in the world, including the UK. We also remain ready to help the UK with its ongoing crypto efforts.”

Marc Andreessen has publicly stated that he decided to back Donald Trump for President following a disappointing meeting with the Biden administration. He has also noted that during the Biden administration, many of the crypto firms they have supported were debanked due to regulatory pressure.

In a blog post last week, a16z welcomed the change in government stating that as tech evolves so must the Securities and Exchange Commission (SEC) a regulator that has been decidedly anti-crypto the past four years.

“New leadership — plus the formation of a new crypto task force — gives the agency an opportunity to take meaningful action and adapt. The time for that action is now: The market for crypto assets has grown in size and sophistication such that the SEC’s recent harmful approach of enforcement and abdication of regulation needs urgent updating. There is no other way to promote efficient markets, encourage innovation, and ensure investor protections are adopted as professional investment services begin to operate within this new industry. The principles underpinning the relevant securities laws — disclosure, fraud prevention, and market integrity — should remain sacrosanct. However, applying these principles in a way that reflects the distinct characteristics of crypto assets requires targeted regulatory changes.”

This has sent however a bit of shockwave in London where tech sector is already struggling due to over-regulations and lack of talent. Europe is lagging behind in tech innovation and appears to have rather crippled by regulators who show very little understanding of technology.