For a16z, AI gives foreign founders an advantage
Andreessen Horowitz (a16z) says the AI boom is levelling the playing field for founders outside the United States, giving international entrepreneurs a genuine edge over their American counterparts rather than merely accepting them as a matter of course. Partner Gabriel Vasquez, who works on the firm's Apps Fund and global strategy alongside general partner Angela Strange, leads a16z's Borderless Founder network supporting immigrant and international entrepreneurs, and argues that keeping "one foot" in a home country while maintaining ties to Silicon Valley is now advantageous rather than a compromise.
According to Vasquez, 44% of a16z's investments in its Apps Fund One and Two backed founders with international roots, and the firm has reportedly logged over a million air miles chasing dealflow abroad rather than insisting teams relocate to the US. He attributes the shift to changing corporate buying habits worldwide: over the past three to five years, companies outside the US, including in regions such as Latin America where cheap labour previously limited software adoption, have become far readier to pay for AI tools, even from early-stage startups. This is opening space for local founders to sell AI solutions in their own markets while splitting time with the US, a trend Vasquez says is even reflected in government behaviour, citing Poland's recent stake in a16z-backed voice AI firm ElevenLabs.
- a16z says AI now gives foreign founders an edge over US-based rivals
- 44% of its Apps Fund investments have international founders
- Global firms are increasingly paying for AI startups' products early on
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Andreessen Horowitz, often called a16z, is a US venture capital firm that invests in young companies. Its Apps Fund backs software businesses, and partner Gabriel Vasquez works with international founders through the firm’s Borderless Founder network.
Many founders build companies in the countries where they grew up while keeping links to Silicon Valley, a major US technology hub. The argument is that this can help them understand local customers and reach markets beyond the United States.
AI tools are changing what businesses are willing to buy, including in countries where software adoption has been slower. That may create opportunities for local startups to sell products suited to their markets, while also raising questions about where companies build and find customers.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The AI economy is distributing entrepreneurial opportunity more globally because emerging markets now possess sufficient purchasing power to pay premium prices for advanced software solutions. Local founders gain genuine advantages in understanding their customers' needs, regulations, and market timing without relocating to the US, whilst a16z's demonstrated commitment—investing in 44% international founders and travelling globally for dealflow—suggests this reflects authentic market dynamics. This represents a meaningful departure from previous eras when technology entrepreneurship centred far more heavily on the United States.
The case against
Whilst international founders face fewer disadvantages than previously, characterising this as an advantage may substantially overstate the shift and likely reflects a16z's strong incentive to expand global dealflow and appear inclusive. Fundamental advantages still favouring US-based founders remain considerable—access to specialised talent, regulatory clarity, ecosystem density, and mature capital markets—and claims about emerging-market software adoption may be exaggerated given persistent price sensitivity. The narrative more accurately describes a reduction in disadvantage rather than a genuine competitive edge.