Why is the DOJ investigating Andreessen Horowitz’s board seats?
Andreessen Horowitz has two partners sitting on the boards of companies that now compete with each other: Ben Horowitz at Databricks and Martin Casado at Fivetran. Nothing too scandalous on the surface, except the Department of Justice has reportedly been investigating the arrangement for almost a year, dusting off a 112-year-old antitrust law that’s rarely used against VCs. Board conflicts…
The Department of Justice (DOJ) is currently investigating the board seats held by two Andreessen Horowitz (a16z) partners - Ben Horowitz and Martin Casado - according to sources. The probe has been ongoing for nearly a year and involves dusting off an antitrust law that is often not used against venture capitalists (VCs).
Board conflicts are not uncommon, and at the time a16z invested in these companies, they were not necessarily direct competitors. However, as portfolio companies grow and expand into each other's markets, the DOJ's scrutiny raises significant questions for venture firms about managing board seats in such a dynamic environment.
The investigation has sparked a broader discussion on TechCrunch's Equity podcast, where Kirsten Korosec, Anthony Ha, and Sean O'Kane delve into the a16z probe, its potential implications for VCs, and other recent headlines in the tech industry. The podcast can be found on YouTube, Apple Podcasts, Overcast, Spotify, and all other major podcast platforms. Equity can also be followed on X and Threads, under the handle @EquityPod.
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