a16z now wants to manage the money of the entrepreneurs it backs – TechCrunch

Andreessen Horowitz’s hiring of former Jordan Park Group Investment Director, Michel Del Buono shows venture capital company is engaged in startup founder wealth management.

Outfit, commonly known as a16z, confirms Del Buono’s hiring as CIO to oversee those types of services for founders, as first reported by Bloomberg.

TechCrunch has reached out to a16z for comment but has not received a response at the time of writing.

Andreessen Horowitz is not the first to venture into this arena. Both Iconiq Capital and Sequoia capital provides money management services.

Iconiq is manage more than 80 billion dollarsup from $23 billion in 2020 and list of customers consists of Mark Zuckerberg, Sheryl Sandberg and Jack Dorsey.

Meanwhile, Sequoia’s business unit, Sequoia Heritage, was founded in 2010 and currently manages $16.4 billion, according to Bloomberg. This is just one of those many internal programs that the venture capital giant offers its founders.

Like Bloomberg Note, wealth management can be a hugely profitable business when the money comes in. Managers charge a percentage of the assets they oversee, and profit margins can reach 50%.

Andreessen is no stranger to breaking standards in the world of adventure. In 2019, Andreessen officially become a registered investment advisorwhich means that the company no longer has to limit its shares, including in its general fund.

The A16z made headlines for another reason recently when it was announced that in the future, headquarters will be “in the cloud.“In addition to eliminating a centralized headquarters, a16z announced new offices in Miami Beach, New York and Santa Monica in addition to the existing Menlo Park and San Francisco headquarters.

That move is notable as the elite venture company was founded in 2009 in Menlo Park and has a history of affiliation with the Bay Area. It also reflects how much has changed since the COVID-19 pandemic as more and more companies and ventures work remotely.

The company earlier this year also announced that it is build an accelerator for early stage entrepreneurs, this can also be a sign that they want to expand their offering.

Source link


Kig News: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button