Andreessen Horowitz could open itself up to investment with IPO
The Future. The Information believes that top VC firm Andreessen Horowitz (a16z) could IPO in the near future, as all its ducks are in a row to make a splash in a public debut. An IPO could give a16z the funds and footprint to make an even bigger impact in emerging markets, such as crypto and biotech.
Here’s why a16z could go public:
- It’s on a growth clip. a16z has raised $12 billion in three years and is set to raise another $6.5 billion. The staff has also increased by 170% to 70 people.
- It’s structured like a corporation. The company has diversified not just its holdings but has given power to partners to run their own funds. Additionally, a16z has dedicated teams for marketing and talent to help founders.
- It’s the era of scale. Recently, stock for firms like Blackstone and Apollo Global “outperformed” this year, and other firms like TPG are preparing to go public themselves. a16z will want to keep up.
- International is on the horizon. If foreign firms buy up significant stock, it could give a16z an opening to expand its international profile (and portfolio).
a16z already manages $19 billion in assets. The Information gives a conservative estimate that, given a 2% management fee, the firm could have a yearly income of $380 million.
That number may look pretty appetizing for banks who want to help a16z prepare for an IPO.