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Home » Andreessen Horowitz Latest Company to Follow Elon Musk Out of Delaware
U.S. Energy Policy

Andreessen Horowitz Latest Company to Follow Elon Musk Out of Delaware

omc_adminBy omc_adminJuly 9, 2025No Comments3 Mins Read
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A top venture capitalist firm is following in Elon Musk’s footsteps and ditching Delaware.

Andreessen Horowitz announced Wednesday it will move its primary business — AH Capital Management — to Nevada. Although Delaware has historically been a business-friendly state, a series of court rulings have led some executives to question whether that’s still true.

“In particular, Delaware courts can at times appear biased against technology startup founders and their boards,” the firm said in a blog posted to its website.

The firm added that the “legal uncertainty” has caused concern among “entrepreneurs and their professional investors who often sit on their boards.”

“As a result, many of the companies we fund and the entrepreneurs that we talk to are taking a second look at whether they should incorporate in other jurisdictions, prompted by the departure from Delaware of significant technology companies like Dropbox, Tripadvisor and Tesla,” the firm wrote.

Andreessen Horowitz said the firm could have moved to Nevada “quietly” but felt it was crucial to make the decision public.

“For founders considering a similar move, there is often a reluctance to leave Delaware, based in part on concerns for how investors will react,” the company said. “As the largest VC firm in the country, we hope that our decision signals to our portfolio companies and prospective portfolio companies that such concerns may be overblown.”

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Andreessen Horowitz said it will continue to fund companies incorporated in Delaware, but considers Nevada a “viable alternative and may make sense for many founders.”

Representatives for Andreessen Horowitz did not respond to a request for comment from Business Insider.

Musk launched this trend of companies leaving Delaware after a Delaware court voided the Tesla CEO’s $55 billion pay package in response to a 2018 lawsuit filed by a shareholder who thought the amount was excessive. As a result, Musk moved SpaceX to Texas.

Other companies, including Roblox and Bill Ackman’sPershing Square Capital Management, followed suit.

Delaware Gov. Matt Meyer told Business Insider in February that the state is working to address concerns. In March, the state amended the Delaware General Corporation Law.

“It’s really important we get it right for Elon Musk or whoever the litigants are in Delaware courts,” he said. “We’re cognizant that there may be some things that need to change. We’re going to work on them.”



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