Andreessen Horowitz Gets FTC OK for Unspecified Coinbase Transaction

Sep 24, 2020 at 19:08 UTC.Andreessen Horowitz's late-stage venture fund has received a green light from the U.S. Federal Trade Commission for a transaction involving Coinbase.

It is unclear at press time whether the approval is for the fund's previously disclosed purchase of shares in the cryptocurrency exchange or for a new purchase.

The VC giant's $2 billion fund, Andreessen Horowitz LSV Fund I, L.P, received antitrust clearance from the FTC in a filing dated Sept. 22 involving "Coinbase Global, Inc.".

Given that Coinbase's $8 billion valuation would represent nearly half of a16z's $16.6 billion assets under management, it's extremely unlikely the clearance is for an outright purchase.

A16z most recently participated in Coinbase's $300 million Series E in October 2018.

Since a16z already has a stake in Coinbase, it's likely the FTC clearance is for the firm's previously disclosed purchases of Coinbase shares, or for a purchase of additional shares.

A Coinbase spokesperson confirmed that "Coinbase Global" is the firm's parent entity but would not comment further.

A spokesperson from a16z declined to comment on the record.

Coinbase has had close ties with a16z since at least 2013.

The exchange added a16z chief Marc Andreessen as a board observer in August.