US Justice Department reportedly investigating Andreessen Horowitz board seats
UKPulse News Desk
The US Department of Justice is reportedly investigating Andreessen Horowitz over two partners holding board seats at competing companies, using a rarely applied 112-year-old antitrust law.
- The US Department of Justice has reportedly been investigating Andreessen Horowitz for almost a year.
- The investigation concerns two Andreessen Horowitz partners, Ben Horowitz and Martin Casado, who sit on the boards of Databricks and Fivetran, respectively.
- Databricks and Fivetran are now competing companies, and the probe involves a 112-year-old antitrust law rarely used against venture capitalists.
The US Department of Justice (DOJ) has reportedly been investigating venture capital firm Andreessen Horowitz (a16z) for nearly a year. The probe focuses on two a16z partners, Ben Horowitz and Martin Casado, who hold board seats at Databricks and Fivetran, respectively.
Databricks and Fivetran are now considered competing companies. The DOJ is reportedly utilising a 112-year-old antitrust law, which is rarely applied to venture capitalists, to examine this arrangement.
While board conflicts are not new, and the companies were not necessarily direct competitors when a16z initially invested, the DOJ's scrutiny raises questions for venture firms regarding how to manage board seats as portfolio companies expand into each other's markets.
Why this matters: The investigation could set a precedent for how venture capital firms manage board seats in companies that become competitors, potentially impacting investment strategies.