For a16z, AI gives foreign founders an advantage
a16z’s Borderless Founder network initiative supports immigrant and international founders. 'Having one foot in your home country, and one foot in Silicon Valley," is an advantage, the firm believes.
Andreessen Horowitz, a prominent U.S.-based venture capital firm, is expanding its investment focus beyond American entrepreneurs. According to partner Gabriel Vasquez, who guides the firm's AI investments, 44% of the investments in their Apps Fund One and Two are from international founders. This shift is attributed to a belief that great companies can emerge anywhere, but foreign entrepreneurs now possess an edge over their American counterparts in the AI-dominated market.
Vasquez and partner Angela Strange, who spearheads a16z's Borderless Founder network, argue that having a foot in both the home country and Silicon Valley provides an advantage. This advantage has become so significant that the firm has spent "more than one million air miles" pursuing international dealflow, rather than expecting founders to relocate to the U.S.
Traditionally, U.S. startups struggled to secure major clients outside the country, but this has changed dramatically in recent years. As AI agents become commonplace in customer service and other sectors, startups can now secure contracts with Fortune 500 companies worldwide. This shift has been driven by the realization that legacy players must adopt third-party solutions to remain competitive, even in markets with affordable human labor.
Vasquez notes that while American startups may lack the speed to serve the entire market from day zero, local founders can still tap into the growing demand for AI solutions in their home countries. This approach allows them to split their time between their home base and Silicon Valley. Additionally, the increasing accessibility of top AI talent outside the U.S. has made international founders more attractive to investors.
Talent clusters in Europe, for example, have become a key factor in attracting investments. European academic spinouts and startups are increasingly becoming unicorn candidates, attracting venture capital. This trend has been facilitated by AI, which has made legacy players recognize the need to acquire third-party solutions, even in markets where human labor remains affordable.
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