- Andreessen Horowitz is a venture capital firm located in Silicon Valley, which recently revealed that it would raise around $4.5 billion to set up two new cryptocurrency funds to boost its development in the industry.
- As per some reports, the venture capital fund is known to have made about 40 investments related to cryptocurrencies from 2016 to 2021. Also, it had planned to raise $1 billion for funding cryptocurrency businesses.
- The venture capital’s boost for fundraising has led to the egress of Katie Haun, one of the VC’s top partners, with an aim to start her own investment group.
To boost its development in the cryptocurrency industry, venture capitalist Andreessen Horowitz intends to launch two separate cryptocurrency funds raising a whopping $4.5 billion. According to the Financial Times, the organization wants to gather $3.5 billion for a fresh cryptocurrency venture fund and $1 billion for a fund dedicated to fueling cryptocurrency startups.
Referencing a source familiar with the situation, according to the Financial Times, the venture capital powerhouse aims to close the two new funds by March. The news arises just weeks after some news agencies reported that global venture capital companies spent $30 billion on cryptocurrencies last year, higher than any of the past years altogether, and quadrupled the previous high of $8 billion in 2018.
Numerous Cryptocurrency Investments
According to some news agencies, Andreessen Horowitz conducted 40 cryptocurrency-related investments between 2016 and December 2021, as per the information from some market research organizations. With 68 agreements in the same time span, Coinbase Ventures, the investment branch of digital asset behemoth Coinbase, tops all US-based crypto venture capital. Andreessen Horowitz said in May of last year that it planned to fund up to $1 billion to spend in cryptocurrencies and cryptocurrency businesses.
Andreessen Horowitz is among Silicon Valley’s most well-known venture capital firms, having initially invested in Facebook, Twitter, Airbnb, Stripe, Coinbase, and a slew of other major technology companies. Andreessen’s haul, if fruitful, would considerably outstrip any previous funds gathered to make early bitcoin wagers.
The initiative demonstrates how prominent venture capital companies are progressively investing in cryptocurrency, fueling a surge that has generated hundreds of ventures aimed at replacing traditional finance. VC businesses that attempt to collect funds rapidly and in huge amounts are usually rejected by investors, who prefer modest funds that rely on performance.
Departure Of VC’s Leading Partner
Last year, Andreessen was among the most prominent cryptocurrency investors, making significant investments in Sky Mavis, Solana Labs, and OpenSea, a non-fungible token marketplace. Katie Haun, one of the business’s leading partners, departed to form her own investment company, prompting the firm’s fundraising campaign. Haun intends to generate at least $900 million for two cryptocurrency funds. Andreessen Horowitz has pledged $50 million to the funds. Andreessen Horowitz said this month that it has raised $9 billion for its latest biotech, venture, and growth equity funds, increasing the firm’s total assets under supervision to over $28 billion.
According to individuals familiar with the conversations, Andreessen notified investors last week that it sought to collect up to $500 million for a fresh gaming fund.
