Andreessen Horowitz closes Miami office, raising questions about the city’s crypto future

The $43 billion firm, known for its significant investments in technology and crypto, opened the office in 2022, intending to support Miami’s growing reputation as a tech hub. However, just two years later, according to Bloomberg, a16z vacated the space due to underutilization by its employees.

What happened to Miami?

The closure highlights concerns about Miami’s ability to maintain its momentum as a tech and finance center, particularly after the crypto market downturn.

From 2020 to 2021, Miami gained attention for its rising crypto activity, fueled by traditional and crypto-financial players and supported by Mayor Francis Suarez’s push to make the city a tech hub.

Miami even launched a crypto token called “MiamiCoin” to fund city projects

The city’s appeal was further bolstered by its lack of state taxes, permissive COVID-19 policies, and rising tech investments, which led to increased property values and a migration of tech professionals.

However, the collapse of Sam Bankman-Fried’s FTX and the broader crypto market slump over the following two years led to a sharp decline in venture capital investments in Miami. Miami-based companies raised just $400 million in the second quarter of 2024, compared to $5.5 billion in 2022, according to Bloomberg.

In March of this year, a16z shifted its focus to AI, raising $6.9 billion for new funds and pausing crypto fund expansion. The firm allocated significant resources to AI, gaming, and American Dynamism. Despite this, crypto venture funding increased 2.5% in the last quarter of 2023.

The former a16z office in Miami is now occupied by contact lens manufacturer Bausch + Lomb, reflecting the shift in the city’s business landscape.