Andreessen Horowitz Abandons Delaware, Reincorporates in Nevada

Andreessen Horowitz (a16z) stunned the venture world today by announcing that AH Capital Management, its main operating entity, will reincorporate in Nevada after decades in Delaware. In a blog post titled “We’re Leaving Delaware — And You Should Consider Leaving Too,” the $42 billion fund blasted Delaware’s Court of Chancery for injecting “unprecedented subjectivity” into corporate rulings and praised Nevada’s codified business-judgment protections as a fairer venue for founders and boards.

The relocation comes amid a broader “Dexit” migration that has already seen heavyweights like SpaceX, Tesla, Dropbox, and Roblox flee Delaware in the wake of contentious shareholder lawsuits. Nevada’s legislature recently advanced bills to beef up a specialized business court, and Governor Joe Lombardo has pitched the state as a neutral, tech-friendly alternative. Observers say a16z’s move could accelerate that momentum, especially if its 500-plus portfolio companies heed the call.

While the shift won’t affect day-to-day investing, it could reshape startup playbooks: founders hunting for term-sheet advantages may now weigh Nevada charters to court a16z money, and rival VCs are reportedly reviewing domicile options. Delaware, which relies on incorporation fees for a quarter of its budget, has acknowledged the exodus and begun drafting reforms — but critics argue the changes may be too late to halt the stampede.