What’s Behind the DOJ’s Probe into Andreessen Horowitz’s Board Appointments?
Andreessen Horowitz (a16z) finds itself in a unique situation as two of its partners serve on the boards of rival firms: Ben Horowitz at Databricks and Martin Casado at Fivetran. While this might seem innocuous at first glance, the Department of Justice has been allegedly investigating this arrangement for nearly a year, reviving a century-old antitrust statute seldom applied to venture capitalists.
Conflicts of interest related to board memberships are not new, and when a16z first invested in these companies, they weren’t necessarily viewed as direct competitors. However, as their business ventures begin to overlap, the DOJ’s investigation brings to light a larger issue for venture capital firms: how can they appropriately manage board memberships when the lines between their portfolio companies are increasingly blurred?
In a recent episode of TechCrunch’s Equity podcast, hosts Kirsten Korosec, Anthony Ha, and Sean O’Kane discuss the a16z investigation, its implications for venture capitalists, and address other significant news from the week.
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