After Tesla CEO Elon Musk, Silicon Valley’s largest VC company Andreessen Horowitz asks tech companies to leave Delaware; blames ‘unprecedented level of …’ in an open post

Silicon Valley venture capital giant Andreessen Horowitz is relocating its corporate incorporation from Delaware to Nevada, citing concerns over bias in Delaware’s Court of Chancery against company founders and boards. According to a report by Bloomberg, the company also urges its portfolio companies to follow suit, signaling a potential shift in the tech industry’s long-standing preference for Delaware. In a blog post published Wednesday, July 10, Andreessen Horowitz’s legal and policy leaders — Jai Ramaswamy, Andy Hill, and Kevin McKinley — slammed Delaware’s Chancery Court for injecting “unprecedented subjectivity” into recent rulings, eroding the state’s reputation as a business-friendly incorporation hub. “Some startups hesitate to leave Delaware based in part on concerns for how investors will react,” the trio wrote. “As the largest VC firm in the country, we hope our decision signals to our portfolio companies, as well as to prospective portfolio companies, that such concerns may be overblown.