DOJ Investigates a16z: Antitrust Risks for Venture Capital

DOJ Investigates a16z: Antitrust Risks for Venture Capital

Regulatory Focus: The Department of Justice is investigating Andreessen Horowitz (a16z) over potential antitrust violations involving board members sitting on the boards of competing companies. Legal Precedent: This investigation relies on Section 8 of the Clayton Act, which prohibits “interlocking directorates” that could hinder market competition. Strategic Risk: The crackdown challenges the standard VC practice of taking board seats and may d…

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 aren’t exactly new, and these companies weren’t necess…

Will the DOJ’s investigation into a16z spook other VCs?

On the latest episode of Equity, we wonder why the DOJ is investigating startup board seats.