Andreessen Horowitz, a venture capital firm, has raised $4.5 Billion for its fourth cryptocurrency fund. This brings its total for crypto and blockchain investments at $7.6 Billion.
Andreessen Horowitz (a16z), a Silicon Valley-based venture capital company, today revealed it raised $4.5 billion to fund a new crypto fund. This is the fourth and largest investment the firm has made.
Crypto Fund 4 doubles the size a16z’s prior crypto fund raised last June. This demonstrates that despite turmoil in the crypto market the firm’s partners are now looking for more exposure to promising Web3 startups.
We believe we are now in the golden age of web3. In a post accompanying this raise, Chris Dixon, a16z partner wrote that programming blockchains have advanced sufficiently and a variety of apps has reached tens to millions of users.”
“More important, web3 has seen a huge influx of top-notch talent over the past year. He said that they are bright and passionate about building a better internet.
The $4.5 billion raised will go towards seed investments. $1.5 billion will be used for venture investments.
Dixon said that the company is particularly “excited” about recent developments in Web3 games, web0_ DeFi , decentralized financial ( DeFi ), self-sovereignity, layer-1 and layer-2 infrastructures, DAOs governance, NFT communities and privacy.
Concentrate on the “top echelon” of founders
The announcement of a16z’s latest crypto fund comes at a moment when the wider crypto market is in major decline following the collapse of TerraUSD stablecoin , and its sister coin LUNA.
Andreessen Horowitz partner Ariana Sisi assured investors that despite the slump, the firm was confident in its bets.
Simpson stated that bear markets are where the best opportunities are, when people can focus on building technology and not getting distracted by price fluctuations.
She continued by saying that technical diligence and other types of diligence are key to ensuring that projects meet our standards.
Simpson stated that while our investment pace has been slow, they continue to invest in the best founders.
The current crypto portfolio of the firm includes Alchemy and Avalanche as well as Celo, Dapper Labs. Phantom Wallet, OpenSea. Solana. Yuga Labs.
made an investment in Flowcarbon earlier this week. This blockchain-based trading platform for carbon credit and other commodities was also backed controversially by Adam Neumann, founder of WeWork.
Andreessen Horowitz also announced earlier this month the launch of GAMESFUND ONE which will invest $600,000,000 in the gaming industry.