Venture firm a16z just announced that it will be "moving its headquarters to the cloud." At the same time, it announced 3 new offices in Miami Beach, New York, and Santa Monica. These will be in addition to their existing offices in Menlo Park and San Francisco.

Part of their argument is that hybrid work is weakening the network effects and agglomeration economies associated with being right in Silicon Valley. So they've deiced to be virtual, but still have offices where they can "materialize physically" when needed.

They acknowledge that physical presence is important for developing a company's culture, building relationships, and helping entrepreneurs (their core business).

What's interesting about all of this is that it's further validation for Miami (Beach). Here is one of the most important venture firms out there saying that when they quickly materialize in real life, they want to be able to do that in Miami Beach.

It also raises some interesting questions. Because even if the network effects of Silicon Valley are weakening when it comes to tech, this announcement still speaks to the importance of agglomeration economies. These three new office locations were chosen for a reason.