- Andreessen Horowitz closed its Miami Beach office in May 2023 after only two years, due to insufficient usage and the crypto market collapse.
- The firm had signed a five-year lease for 8.3 KSF but chose to exit the space following the downturn in Miami’s tech and crypto scene.
- Miami’s venture capital influx has seriously slowed down, with only $400M raised in 2Q23, down from $5.5B in 2022.
Andreessen Horowitz (a16z), a major player in venture capital, opened a Miami office in 2021 as the city aimed to become a tech and crypto hub.
But just two years later, the firm has shut down its Miami outpost, a concerning sign for the sustainability of Miami’s tech ambitions, particularly after the crypto crash, as reported in Bloomberg.
Behind The Closure
In May, Andreessen Horowitz vacated its Miami Beach office, citing low employee attendance as the primary reason. The firm had leased 8.3 KSF in a high-profile office building on Collins Avenue, owned by Barry Sternlicht.
Despite initial excitement, Miami’s tech scene suffered a blow following the collapse of FTX and the broader crypto downturn, which slashed the city’s standing as a potential tech hub.
Crumbling Crypto
Miami’s rise as a potential tech hub was driven by finance and crypto firms relocating to the city. But the unexpected and sudden collapse of crypto—including shockwaves from the FTX shutdown—has led to many cold feet.
Citywide venture capital funding has dropped sharply, from $5.5B in 2022 to just $400M in 2Q23. By contrast, San Francisco continues to attract investment, especially in artificial intelligence, receiving $18.7B in the same period.
Why It Matters
Andreessen Horowitz’s departure from Miami highlights the city’s struggles to maintain its appeal as a tech hub, particularly as the crypto sector faces ongoing setbacks.
Despite the initial crypto hype, the sector never gained a significant physical presence in Miami. At its peak, crypto companies occupied only 70 KSF of office space, and interest in new office leases from tech firms has waned.
Andreessen Horowitz’s former space is now occupied by Bausch + Lomb Corp., reflecting a shift toward more traditional businesses like family offices and private equity in the Miami area.
