Andreessen Horowitz (a16z) has observed a significant shift in the AI landscape, with international founders now holding an advantage over their American counterparts. Gabriel Vasquez, a partner focusing on AI apps and global investment strategy, noted that 44% of investments in the firm's Apps Fund One and Two have an international founder.
This belief has led a16z, through its Borderless Founder network initiative, to actively seek out international dealflow. Vasquez stated that the firm has spent over one million air miles to pursue these opportunities, moving away from the previous expectation for all teams to relocate to the U.S.
The change is partly attributed to a dramatic shift in buying patterns over the last three to five years, particularly outside the U.S. Vasquez explained that international companies, including those in less cutting-edge markets, are now securing major customers early on. This contrasts with an older pattern where buyers outside the U.S. were slow to adopt and had low willingness to pay for software.
AI is identified as the key driver for this change, as it has made legacy players realise the necessity of buying third-party solutions to remain competitive. This is evident even in regions where human labour is affordable, such as Latin America, where AI agents are becoming commonplace in areas like customer service.
Furthermore, international founders often have access to diverse talent pools outside Silicon Valley, where recruiting is highly competitive due to the presence of companies like Anthropic and OpenAI. Vasquez highlighted that this access to talent is a key differentiator.