Why is the DOJ investigating Andreessen Horowitz’s board seats?

Key Highlights

• 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 necessarily direct competitors when a16z first invested in them.
• But as portfolio companies expand into each other’s markets, the DOJ’s scrutiny raises a much bigger question for venture firms: How do you manage board seats when the boundaries between your portfolio companies keep moving?
• Theresa is based in New Jersey and holds a bachelors degree in Communication from Monmouth University.
• Loading the player... 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.

Loading the player... 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 necessarily direct competitors when a16z first invested in them.

But as portfolio companies expand into each other’s markets, the DOJ’s scrutiny raises a much bigger question for venture firms: How do you manage board seats when the boundaries between your portfolio companies keep moving?

On this episode of TechCrunch’s Equity podcast, Kirsten Korosec, Anthony Ha, and Sean O’Kane dig into the a16z probe, what it could mean for VCs, and more of the week’s headlines.

Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts.

You also can follow Equity on X and Threads, at @EquityPod.

Theresa Loconsolo is an audio producer at TechCrunch focusing on Equity, the network’s flagship podcast.

Before joining TechCrunch in 2022, she was one of 2 producers at a four-station conglomerate where she wrote, recorded, voiced and edited content, and engineered live performances and interviews from guests like lovelytheband.

Theresa is based in New Jersey and holds a bachelors degree in Communication from Monmouth University.

You can contact or verify outreach from Theresa by emailing theresa.

loconsolo@techcrunch.

com.

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