US venture capital giant Andreessen Horowitz picks UK for overseas HQ 

City minister 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 it is also a major backer of cryptocurrency companies.

The decision to open an office in the UK comes as the firm seeks a more hospitable environment for crypto and the blockchain technology behind it amid a regulatory crackdown in the US.

But it is also the latest sign of global firms alighting on Britain as the Government seeks to boost its tech credentials – offsetting some of the recent doom and gloom about London’s status as a financial centre as firms up sticks for New York.

UK office: Andreessen Horowitz, founded by Chris Dixon,(pictured), has invested in some of the world biggest tech 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 choosing it for a European headquarters.

California-based Andreessen Horowitz, which manages £28billion of assets, said it would work with universities in the UK and support the development of blockchain technologies and start-ups. It will also run a crypto start-up school in London next spring.

Chris Dixon, founder and managing director of the firm’s a16z crypto fund, which is setting 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: ‘Fantastic news that Andreessen Horowitz – one of the world’s most successful tech investment firms – has decided to open their first international office in the UK.

‘And that part of the reason to locate in London is the strength of the UK’s 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 that the UK is on the right path to becoming a leader in crypto regulation. 

The UK also has deep pools of talent, world-leading academic institutions and a strong entrepreneurial culture.’

Britain is also, Dixon said, home to more ‘unicorns’ – start-up companies valued at $1bn or more – than Germany, France and Sweden combined.

The positive noises on crypto contrast with some of the scepticism expressed by the Financial Conduct Authority, which revealed last week that 5m 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 been cracking down on the industry, last week filing lawsuits against cryptocurrency exchanges Coinbase and Binance for allegedly breaching its rules.

This post first appeared on Dailymail.co.uk