TLDR:
- Andreessen Horowitz quietly shutters Miami outpost after two years due to lack of usage by employees.
- Miami’s tech and crypto boom flags as venture capital money flowing to the city decreases significantly.
When Andreessen Horowitz opened an outpost in Miami Beach, the $43 billion venture capital giant bolstered the region’s ambitions of becoming a tropical tech mecca. However, the office has been quietly shuttered after two years due to lack of employee usage. The departure of Andreessen Horowitz highlights the potential weakness of Miami’s staying power after luring a rush of finance and tech companies in recent years.
Miami-based companies brought in $400 million in the second quarter, significantly lower than the $5.5 billion they attracted in 2022 as a whole. This decline in venture capital money flowing to Miami indicates a flagging tech and crypto boom in the region. On the other hand, the artificial intelligence boom in San Francisco continues to thrive, with companies in the Bay Area receiving $18.7 billion in venture capital funding in the second quarter.
Despite the crypto rout in 2022, Andreessen Horowitz attempted to keep the Miami offices going, but eventually exited the space in May. The former office is now occupied by contact-lens maker Bausch + Lomb Corp. The lack of interest from crypto companies in office space in Miami has led to more interest from family offices, investors, and private equity firms in the region.
Overall, the closure of Andreessen Horowitz’s Miami outpost and the decrease in venture capital money flowing to the city signal a decline in the tech and crypto boom in Miami, while other tech hubs like San Francisco continue to thrive.
