Federal prosecutors are reportedly investigating Andreessen Horowitz, the venture capital giant, over board seats it holds. The inquiry signals that Silicon Valley may be in the Justice Dept.'s sights as regulators scrutinize potential conflicts of interest in venture capital governance.

The investigation focuses on whether the firm's partners improperly used their board positions at portfolio companies to benefit Andreessen Horowitz's own funds or other investments. Such arrangements could violate securities laws or fiduciary duties if board members prioritized the VC firm's interests over those of the companies they oversee.

Andreessen Horowitz, co-founded by Marc Andreessen and Ben Horowitz, manages over $42 billion in assets and holds board seats across numerous high-profile startups. The probe represents a significant escalation in regulatory oversight of venture capital practices.

Neither the Justice Dept. nor Andreessen Horowitz has publicly confirmed the investigation. Legal experts suggest the inquiry could reshape how VC firms structure board representation and manage conflicts across their portfolios.