Form 4: Andreessen Horowitz Funds Distribute and Sell Samsara Inc. (IOT) Shares

Andreessen Horowitz and related entities distributed shares of Samsara Inc. Class A Common Stock to their limited partners and members, and also sold a portion of their holdings.

Summary

• Andreessen Horowitz LSV Fund I, L.P. and related entities distributed 2,401,999 shares of Samsara Inc.'s Class A Common Stock to their limited partners on September 10, 2024.
• Andreessen Horowitz Fund IV, L.P. and related entities distributed 10,949,016 shares of Samsara Inc.'s Class A Common Stock to their limited partners on September 10, 2024.
• AH Parallel Fund IV, L.P. and related entities distributed 994,901 shares of Samsara Inc.'s Class A Common Stock to their limited partners on September 10, 2024.
• On September 11, 2024, AH Capital Management, L.L.C. sold 9,604 shares at an average price of $44.34, 9,959 shares at an average price of $45.28 and 10,928 shares at an average price of $45.94.
• Additional sales were made by Andreessen Horowitz LSV Fund I, L.P. and AH Parallel Fund V, L.P. on September 11, 2024, at varying prices.
• The Class B Common Stock is convertible at any time, at the holder's election, into Class A Common Stock on a 1:1 basis, and has no expiration date.
• This Form 4 is the first of three Forms 4 filed relating to the same event, reporting holdings for multiple Andreessen Horowitz related entities and Benjamin Horowitz.

Sentiment

Score: 5

Explanation: The news is neutral. While there are sales of shares, this is a common practice after distributions to limited partners. The impact on the stock price is uncertain.

Negatives

• The sales by AH Capital Management, L.L.C., Andreessen Horowitz LSV Fund I, L.P. and AH Parallel Fund V, L.P. could be interpreted negatively by the market.

Risks

• Continued sales of shares by Andreessen Horowitz or related entities could put downward pressure on the stock price.
• The distributions of shares to limited partners could lead to further sales if those partners choose to liquidate their positions.

Industry Context

Venture capital firms often distribute shares to their limited partners as part of their fund lifecycle, allowing partners to realize returns on their investments. Subsequent sales are a normal part of this process.

Comparison to Industry Standards

• Distribution of shares to limited partners is a common practice among venture capital firms like Andreessen Horowitz, similar to distributions made by Sequoia Capital or Accel Partners after successful exits.
• The sales executed by AH Capital Management, L.L.C. are similar to sales executed by other venture capital firms after the lock-up period expires following an IPO, such as those seen with Palantir (PLTR) after its direct listing.

Stakeholder Impact

• Shareholders may react to the news of share distributions and sales.
• The limited partners of Andreessen Horowitz funds receive distributions of Samsara shares.

Key Dates