The U.S. Department of Justice has opened a nearly year-long investigation into Andreessen Horowitz over whether its partners’ board seats at competing companies violate antitrust rules. The probe centers on a16z’s representation on the boards of Databricks and Fivetran, two firms now competing in cloud data pipelines despite not being rivals when a16z initially invested.
Ben Horowitz, a16z co-founder, sits on Databricks’ board, while partner Martin Casado serves on Fivetran’s. The DOJ’s scrutiny invokes Section 8 of the Clayton Act, which bars individuals from holding board seats at competing firms. Regulators have rarely applied this rule to venture capital, making the probe a notable test case.
Industry observers note that while backing rival startups has grown more common, board-level conflicts pose greater risks due to access to sensitive strategic information. A16z could mitigate concerns by enforcing a Chinese wall between the two partners, though founders may grow wary of board commitments if forced resignations become routine.
