Andreessen Horowitz’s recent hiring of former Jordan Park Group Chief Investment Officer Michel Del Buono suggests venture firm manages the capital of the founder of a startup.
The company, better known as a16z, has confirmed that Del Buono has been hired as chief information officer to oversee these types of founder services. as first reported by Bloomberg.
TechCrunch has reached out to A16z for comment, but has not received a response as of this writing.
Meanwhile, Sequoia’s business unit, Sequoia Heritage, was created in 2010 and currently manages $16.4 billion. bloomberg. This is just one of numerous internal programs that the venture giant offers founders.
Like Bloomberg notes, money management can be an extremely profitable venture once the money is in the door. Managers charge a percentage of the assets they oversee, and profit margins can be as high as 50%.
Andreessen is no stranger to breaking the rules in the venture capital world. In 2019, Andreessen officially became a registered investment advisor, this meant that the firm no longer had to limit its stakes, including in its general fund.
Recently, A16z made headlines for a different reason when it announced that it was moving forward, its headquarters will “be in the cloud“. In addition to moving away from a centralized headquarters, a16z announced new offices in Miami Beach, New York and Santa Monica in addition to existing offices in Menlo Park and San Francisco.
The move was notable because the legendary venture capital firm was founded in 2009 in Menlo Park and has been historically associated with the Bay Area. It is also a reflection of how much has changed since the COVID-19 pandemic as more companies and venture capital firms work remotely.
The firm earlier this year also announced that creation of an accelerator for start-up entrepreneurs which may also indicate a desire to expand their offer.
Credit: techcrunch.com /