Andreessen Horowitz, or a16z, has quickly established itself as the newest and perhaps most powerful player on Washington’s lobbying scene. This national venture capital firm is especially powerful among its peers. In a strategic move that sets it apart from its competitors, a16z has reported spending $1.49 million on federal lobbying in the first three quarters of 2024. That’s more than double the pace from last year at this time, when the firm expended $950,000 on lobbying related activities.
a16z’s $30 million financial commitment is unprecedented. Additionally, they are doing essential work to lobby aggressively on key issues, such as National Defense Authorization Act (NDAA). Since 2023, the swarming firm has made the annual defense policy bill a major target of its lobbying blitz. This decision is a major win for the venture capital sector’s growing interest in defense-related issues. Most significantly, defense issues appeared for the first time in a16z’s third-quarter report for 2023, indicating a shift in priorities.
a16z is indeed stepping up its lobbying muscle beyond what they did last year. The firm has indicated that they plan to spend $1.8 million total on lobbying during 2024. This increased investment in lobbying underscores the firm’s commitment to engaging with policymakers and influencing decisions that may impact the technology sector.
To support this grassroots lobbying operation, a16z has painstakingly developed its in-house, policy-wonking lobbying muscle. The firm hired former Director of Cybersecurity Anne Neuberger as a senior advisor. At the firm, she will focus on “American Dynamism, AI, and cyber,” deepening the firm’s involvement in accelerating primary technological advances critical to the future. This change further advances a16z’s self-declared mission to promote an optimistic technology-enabled future.
a16z’s partner Trae Stephens, a longtime advocate for unsupervised tech disruption, has been critical in formulating the firm’s government affairs strategy. He was instrumental in leading the Department of Defense transition during the 2016 election cycle and has been mentioned as a potential candidate for Deputy Secretary of Defense in 2024. On that front, the firm’s government affairs leadership features members from both sides of the aisle. This diverse team is reflective of the firm’s deep commitment to bipartisan engagement.
Co-founder Ben Horowitz emphasized a16z’s non-partisan stance, stating, “If a candidate supports an optimistic technology-enabled future, we are for them. If they want to choke off important technologies, we are against them.” The company wants to promote public policies that support innovative approaches. It recognizes the negative impact that some policies can have in hampering technological advancement.
This is the cognitive approach a16z takes that sets it apart from its competitors. Unlike most of their competitors, a16z takes a prominent role in lobbying efforts. As a result, many venture capital firms refuse to invest. At the same time, a16z is more aggressively positioning itself as the tech and innovation world’s leading voice in the political battlefield.
The firm’s proactive engagement in Washington has not only distinguished it from its peers but reflects a broader trend among venture capitalists recognizing the importance of regulatory influence on their industry. As technology continues to evolve rapidly, firms like a16z are likely to expand their lobbying efforts to ensure that favorable policies are enacted.
