Andreessen Horowitz just dealt a blow to tech’s move-to-Miami movement

• Andreessen Horowitz has reportedly stopped utilizing its Miami workplace after simply two years.
• The VC agency left the workplace as a result of employees did not are available sufficient, Bloomberg experiences.

Andreessen Horowitz has reportedly given up on its Miami workplace after simply two years within the area.

The Silicon Valley enterprise capital agency, often known as a16z, left its Miami Seaside workplace in Might as a result of employees “weren’t utilizing it sufficient,” Bloomberg reported Wednesday, citing individuals aware of the matter. The corporate had signed a five-year lease in 2022 for 8,300 sq. ft of area in Miami Seaside, the information outlet reported.

The transfer comes after one among Andreessen Horowitz’s cofounders, Ben Horowitz, introduced in July 2022 that the agency was switching to a “new operating model” that concerned a community of satellite tv for pc places of work, together with new areas in Miami Seaside, New York Metropolis, and Santa Monica.

“The agency is now digital, however can materialize bodily on command,” Horowitz stated on the time.

A yr later, the agency’s different cofounder, Marc Andreessen, stated that distant work had “detonated” how we join and that it is “not a good life” for younger workers, because it robs them of working relationships and alternatives.

Andreessen Horowitz didn’t instantly reply to Enterprise Insider’s request for remark.

Outstanding Silicon Valley figures have touted their curiosity in heading to Miami through the pandemic. VC Keith Rabois, for one, called San Francisco “so massively improperly run and managed that it is inconceivable to remain right here” earlier than packing up for Miami through the pandemic in 2020.

Whereas some tech and crypto companies have been making an exodus from California in recent years, citing excessive taxes and the state’s liberal politics, a16z’s departure is the most recent signal of shakiness within the migration from the Valley.

Earlier this yr, The Wall Road Journal reported that Rabois was planning on living again in San Francisco for at least part of the year, and was renovating his dwelling within the metropolis. The Journal reported that another startups situated within the space, together with some Rabois had backed, had moved away from Miami, partly to raised entice tech expertise.

VC funding in Miami additionally noticed an enormous lower in 2023, dropping 70% to $2 billion, in line with the Journal. Extra lately, dealmaking within the Miami-Fort Lauderdale space was $361 million within the second quarter of this yr, down from $623.2 million in Q1 of 2024 however corresponding to the $377.7 million from Q2 final yr, according to PitchBook information.

Whereas some corporations who’ve expanded to Miami or based mostly their operations within the metropolis have since moved elsewhere, the pandemic-era development of relocating away from San Francisco prolonged past Florida.

Austin has additionally emerged as one other common vacation spot for companies leaving the Valley. Elon Musk stated in July that he’d relocate the headquarters of SpaceX and X, formerly Twitter, from California to Austin after beforehand shifting Tesla’s HQ to the Texas metropolis.