Silicon Valley venture capital giant Andreessen Horowitz (a16z) plans to launch a new $ 1 billion fund focusing on investments in cryptocurrencies and blockchain startups, according to sources with knowledge of the matter told the Financial Times yesterday.
According to the report, the company plans to raise between $ 800 million and $ 1 billion from investors for the new fund, which will be the third VC initiative of a16z, which specifically focuses on cryptocurrencies.
Andreessen Horowitz plans $1bn cryptocurrency VC fund https://t.co/f7u7RdIMtO
— Financial Times (@FT) April 30, 2021
The company launched the first $ 300 million fund dedicated to cryptocurrency-related initiatives in 2018. Chris Dixon, who was the seed investor for Andreessen Horowitz at the time, said:
We have funds for “all weather conditions”. We plan to invest consistently over time, regardless of market conditions. If the “crypto winter” ever happens, we will continue to invest aggressively. “
Then, almost exactly a year ago, the company announced its second $ 515 million crypto-centric fund on April 30, 2020. Unlike the first, it was created not only to support crypto-related startups, but also to invest some of its capital.
To date, the a16z investment portfolio includes several successful projects such as Ava Labs, Dfinity, Diem (formerly Libra), Filecoin, MakerDAO, Near Protocol and Uniswap.
Coinbase, the largest crypto exchange in the US, has proven to be an extremely profitable investment for a16z. On April 14, the platform went public via direct listing on Nasdaq, reaching a value of up to $ 86 billion. On that day, the value of Andreessen Horowitz’s shares in Coinbase skyrocketed to $ 11.2 billion.
04/30/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
— Grayscale (@Grayscale) April 30, 2021
As the crypto market continues to grow, so does the interest of institutional investors in digital assets. The combination of capital inflows and increases in prices brought the total value of crypto assets under the management of various companies to a total of $ 64 billion.