US DOJ Investigates Andreessen Horowitz Board Seats
The US DOJ is investigating Andreessen Horowitz over partners holding board seats at competing startups Databricks and Fivetran using old antitrust law.
Stock photo for illustration only, not from the actual event
- US DOJ has investigated Andreessen Horowitz for nearly a year
- Focus centers on partners sitting on boards of rival firms Databricks and Fivetran
- Regulators dusted off a 112-year-old antitrust law rarely used against VCs
The U.S. Department of Justice has reportedly been investigating the prominent venture capital firm Andreessen Horowitz regarding its arrangement of holding board seats in portfolio companies that compete against one another. This scrutiny has quietly persisted for nearly a year.
The investigation specifically involves Ben Horowitz holding a board seat at Databricks while fellow partner Martin Casado serves on the board of Fivetran, two companies operating in overlapping competitive spaces within the technology sector.
VC partners holding board seats across competing firms raises antitrust concerns regarding potential information sharing and reduced market rivalry. While board placement is standard for guiding early-stage startups, applying century-old competition laws to venture capital firms signals a broader regulatory shift by antitrust enforcers.
What makes this regulatory probe particularly notable is that the Department of Justice has dusted off a 112-year-old antitrust statute, a legal framework that has historically been deployed very rarely against venture capital investors.
Stock photo for illustration only, not from the actual event
While sharing board representation across growing startups has long been standard operating procedure for venture capital firms aiming to protect their investments, overlapping board seats in rival enterprises have now drawn serious federal oversight.
Source: TechCrunch
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