For decades, Delaware has been the undisputed capital of corporate America. With its Court of Chancery, specialized judges, and deep precedent in corporate law, more than 60% of Fortune 500 companies call Delaware their legal home. But today, a quiet exodus is emerging—one that could redefine where startups, venture firms, and asset managers choose to anchor their governance.
The latest headline-grabber? Andreessen Horowitz (a16z), Silicon Valley’s most famous venture capital firm, is moving its asset management arm away from Delaware.
Why Delaware Dominated
Delaware’s dominance was built on three pillars:
- ⚖️ Legal Expertise – Courts that specialize in corporate disputes
- 📚 Predictability – Centuries of case law that gave businesses confidence
- 🏛️ Business-Friendly Infrastructure – A system designed to attract incorporation fees and revenue
For years, this combination made Delaware the default choice. If you were serious about scaling, you incorporated there.
Why Companies Are Rethinking Delaware
But times are changing. According to the Financial Times, firms like Andreessen Horowitz are exploring alternatives, citing concerns about:
- Litigation Risk ⚠️
Delaware’s robust governance framework has also made it a magnet for lawsuits. Directors and founders face heightened scrutiny and shareholder activism.
- Founder Friction 👩💻
As startups scale, founders often feel Delaware’s legal ecosystem tilts toward investors and courts—less toward entrepreneurial flexibility.
- Emerging Alternatives 🌍
States like Nevada and Wyoming are marketing themselves as lighter-touch jurisdictions with fewer governance hurdles, lower litigation exposure, and tax-friendly regimes.
For founders and venture-backed firms looking for agility, these options are increasingly attractive.
The Silicon Valley Shift
Andreessen Horowitz’s move isn’t just symbolic—it signals a larger governance reboot for Silicon Valley. If one of the world’s most influential venture firms chooses Nevada over Delaware, others may follow. The balance of power between investor protection and founder freedom could be tilting.
This raises key questions:
- Will Delaware adapt to maintain its dominance?
- Could a patchwork of state-level governance regimes make incorporation riskier?
- Will founders now choose jurisdictions based on strategic fit rather than default tradition?
MPG: Guiding the Governance Journey
At My Premium Governance (MPG), we understand that incorporation is not just a legal formality—it’s a governance decision with long-term consequences. The state you choose can affect litigation risk, investor relations, tax strategy, and even your ability to innovate.
That’s why we help clients navigate this critical decision by offering:
- 🗂️ Jurisdictional Analysis – Compare Delaware vs Nevada, Wyoming, or others with clear governance implications.
- ⚖️ Risk Assessment – Understand litigation exposure and how to mitigate it.
- 📊 Operational Agility Insights – Balance compliance with founder flexibility.
- 🌐 DocxChange Resources – Access incorporation templates, governance playbooks, and real-world case studies.
✨ Delaware may still reign supreme—but the tide is shifting. As Silicon Valley questions old defaults, governance strategy becomes a competitive advantage. With MPG, businesses can make informed, future-ready decisions—anchoring themselves where governance risk and operational freedom meet.