July 9 (Reuters) - Venture capital firm Andreessen

Horowitz said on Wednesday it is relocating its main business

entity, AH Capital Management, from Delaware to Nevada, citing

Delaware's growing judicial bias against tech startup founders

and their boards.

Also known as A16z, the firm said it could have made the

move quietly but felt it was important for its stakeholders and

the broader tech and VC communities to understand the reasons

behind the decision, and also suggested its portfolio companies

to consider making similar moves.

Delaware's Court of Chancery, which had "injected an

unprecedented level of subjectivity into judicial decisions,

undermining the court's reputation for unbiased expertise", had

caused legal uncertainty, A16z, which has been an early backer

in some of today's hottest AI companies, including Databricks

and Elon Musk's xAI, said.

The move places A16z among a growing list of high-profile

tech firms, including Tesla, SpaceX, Dropbox ( DBX ),

Tripadvisor and Bill Ackman's Pershing Square, that

have opted to incorporate out of Delaware.

In recent years, corporate leaders have expressed

frustration over court rulings that upset certain expectations

about the state's law.

The debate intensified last year when a Delaware judge

rescinded Elon Musk's $56 billion pay package, prompting Musk to

urge other companies to follow Tesla and leave the state.

However, Delaware remains home to the majority of large

public companies because its corporate laws protect board

directors acting independently and in the company's best

interest from being sued.