Venture capital firm Andreessen Horowitz has refuted claims of opening an office in India, labeling the reports as “fake news” while shifting its focus back to U.S. investments and artificial intelligence growth.
Andreessen Horowitz, commonly known as a16z, has publicly denied reports suggesting that it plans to establish an office in India. The firm characterized these claims as “fake news,” following a wave of speculation from several Indian media outlets.
Reports surfaced on Thursday, citing unnamed sources, that a16z was preparing to set up a physical presence in India, specifically in Bengaluru. These reports also indicated that the firm was in the process of hiring a local partner to facilitate its operations in the region.
Anish Acharya, a general partner at a16z based in the Bay Area, took to social media platform X to dismiss the rumors. He stated, “As much as I adore India and the many impressive founders and investors in the region, this is entirely fake news!”
This denial comes as a16z is scaling back its international ambitions. Earlier this year, the firm announced the closure of its London office, which had opened in 2023. The decision was attributed to a strategic shift and more favorable regulatory conditions in the United States. Despite this, a16z has indicated that it will continue to invest internationally through remote teams and local networks, with reports suggesting that several of its scouts remain active across Europe.
Historically, India has not been a primary focus for a16z, especially when compared to other U.S. venture capital firms like Accel, General Catalyst, and Lightspeed Venture Partners. The firm’s most notable investment in India has been in the cryptocurrency exchange CoinSwitch, which it backed during a $260 million funding round in 2021. Although there were discussions about a potential $500 million investment in Indian startups, a16z has not made any further investments in the country since that time.
In a previous discussion at Stanford Graduate School of Business, Marc Andreessen, co-founder of a16z, acknowledged the allure of investing in startups within emerging markets. However, he also pointed out the challenges that come with expanding a venture fund’s reach into multiple countries. He emphasized that venture capital is a “very hands-on process” that requires a deep understanding of the people involved, both for evaluating companies and for working alongside them.
Earlier this year, a16z sought to capitalize on the growing momentum in artificial intelligence by aiming to raise approximately $20 billion. The firm communicated to its limited partners that this fund would focus on growth-stage investments in AI companies, appealing to global investors interested in American enterprises.
Additionally, a16z has garnered attention for its significant spending on federal lobbying, reportedly investing $1.49 million this year alone. Records indicate that the firm has outspent its own industry trade group, the National Venture Capital Association, as well as other venture capital firms.
As the venture capital landscape continues to evolve, a16z’s recent statements underscore its commitment to focusing on U.S. investments while navigating the complexities of international markets.
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