Andreessen Horowitz, the Silicon Valley venture capital group, is betting on crypto to break up the excessive concentration of Big Tech power that the firm played a prominent role in creating, according to one of its leading partners.
Why Does it Matter
Chris Dixon, founder of Andreessen’s crypto arm, said the internet had led to power being held by a handful of companies including Facebook and Twitter, which the venture capital group backed at an early stage. “I don’t think that any of us expected this level of concentration.” “I don’t think this is a good outcome, both societally and from a business point of view, because our business is investing in entrepreneurs. . the idea of having the internet controlled by five companies is very bad for entrepreneurs and bad for VCs.”
Dixon believes blockchain technology offers safeguards against anti-competitive activity by building rules into smart contracts written into the computer code. “Of course, [business people] will try to create monopolies and big businesses and maximise shareholder value,” he added. “What we can do to create a better internet is create new systems where the network effects accrue to the community instead of to companies.” Since its crypto fund was launched in 2018, Andreessen has raised more than $7.6bn to invest in cryptocurrencies and related technology companies. Instead of receiving traditional equity, it has been investing in tokens, a form of digital asset built on the blockchain, which can be traded.