The Silicon Valley giant venture capital firm Andreessen Horowitz is preparing to open its first office in Asia, specifically in Japan. This move indicates that Japan is becoming an increasingly important investment hub. Particularly, tensions in the high-tech sector between the US and China are pushing American investors away from China, making Japan an attractive new center.
Reasons for Turning to Japan
Andreessen Horowitz, which also supports cryptocurrency projects, aims to support startup investments by establishing strong ties with companies in Japan. According to information from three sources, the company’s senior executives and investor relations officials have repeatedly explained the Japan office plan to their limited partners, but no final decision has been made yet. Opening an office in Japan aims to both enhance collaboration with existing investors and lay the groundwork for future fundraising activities in Tokyo.
US-based venture capital firms, which once had deep ties with China, have started to withdraw from China due to US-China tensions in advanced technology fields such as artificial intelligence and semiconductors. This has led to a decrease in investments in Chinese startups and a move away from Chinese investors. However, Japan stands out as a low-risk funding source for American investors, thanks to the cash reserves accumulated by large Japanese companies in a low-interest environment.
Company’s Investments in Japan
Among the investors in the $7.2 billion fund launched by Andreessen Horowitz in April are NTT Group, Tokio Marine & Nichido Fire Insurance, and major Japanese trading companies. It is noted that the amount of funds collected from Japanese companies amounts to hundreds of millions of dollars, representing approximately 5% of the total fund.
Although Japan has lagged in developing startups in the past, it is now seen as a rising funding source alternative to China. As rising interest rates lead American institutional investors to restrict the funds allocated to venture capital, Japan emerges as a new hope. Andreessen Horowitz’s interest in Japan signals that the company may make future investments in Japan.
This step is seen as part of Andreessen Horowitz’s international expansion strategy. The company established its first overseas office in London in 2023 and now has chosen Japan to enter the Asian market.
