Andreessen Horowitz (A16z) will open its first Asian office in Japan to strengthen its investor network and focus on investments in startups and growth-stage technology companies in the country, according to Nikkei Asia. It will be the Silicon Valley-based venture capital firm’s second overseas outpost after opening its first international office in London in 2019.
This will not be A16z’s first foray into the Japanese market. Earlier this year, the firm secured $7.2 billion in new funds, around 5% of which was reportedly sourced from major Japanese corporations like NTT Group, Nichido Fire Insurance, and Tokio Marine, the only one that confirmed its participation.
Nikkei Asia reports that Andreessen Horowitz’s move aligns with a broader trend among venture capital firms to shift their focus from China to Japan because of the country’s low interest rates and substantial cash reserves held by Japanese firms.
American venture capitalists had largely favored China but tension between the two countries over trade, particularly over AI and semiconductors, have prompted many investors to reduce their funding in Chinese startups and distance themselves from Chinese investors.
Given the current situation, Japan has become an ideal alternative, especially as American institutional investors tighten their venture capital allocations because of rising interest rates.
With $43 billion in assets under management, Andreessen Horowitz is a prominent name in California’s venture capital scene. It has invested in a wide range of sectors like AI, healthcare, fintech, crypto, games, and consumer goods and backed now household brands like Facebook and AirBnB.
