Andreessen Horowitz cryptocurrency fund
On 24th June, Andreessen Horowitz announced the formation of a new $2.2 billion cryptocurrency fund. It's the company's biggest vertical-specific rider to date.
Andreessen initiated its first crypto-focused investment in 2018 that is presently called "crypto winter." Bitcoin's value dropped by over 80% from its 2017 peaks in the same year.
Andreessen's 2018 crypto investments
The new fund also arrives at a bad time for bitcoin. The company's 2018 crypto fund attracted $300 million in Limited Partner commitments, and the firm's second round, which ended in April of the previous year, raised $515 million.
The latest multibillion-dollar investment demonstrates how investors are becoming more familiar with crypto and how Andreessen's assets under management have been rapidly increasing to compete with other highly wealthy businesses like Tiger Global. With this revelation, Andreessen currently manages a total of $18.8 billion in assets.
Since gaining more than $60,000 in April, the globe's first cryptocurrency has dropped nearly half its value. It's about to lose 20% this week.
Referring to the asset class's unpredictability, the fund's managers Dixon and Haun stated that the prices might vary, but innovation tends to grow with each cycle.
Andreessen and Coinbase
Coinbase was Andreessen's initial foray into the digital asset industry in 2013. In 2021, Coinbase decided to go public through a direct listing, and it is now down about 50% from its newly listed day peak.
Following the company's $11.2 billion bet in Coinbase at the period of the direct listing's debut transactions, LPs are certain to be less hesitant to take a gamble on crypto, even though their share has fallen 30% in current months as the crypto industry has collapsed.
Previous wagers on startups like Pinterest, Lyft, Instagram, and Facebook have made the company famous. Andreessen Horowitz was also an active supporter in the Facebook-funded digital currency venture Libra, rebranded as Diem and has experienced regulatory opposition worldwide.
Andreessen and Defi
The firm has holdings in startups such as Dapper Labs and OpeanSea, which have fueled the present NFT surge. The team has stated that it intends to emphasize "decentralized finance." Also referred to as "defi," this word refers to conventional finance applications such as lending and banking built on the same software as bitcoin.
Andreessen Horowitz mentioned that it intends to hold such cryptocurrency transactions for at least a decade.
Dfinity, a blockchain infrastructural business, acquired $9.5 billion in funding in September. Uniswap, which is destined to play a big role in the Ethereum ecosystem, raised its Series A previous year with the company's help.
A16z has made significant wagers on the currencies themselves besides equity transactions.
According to an earlier post from Newbie the previous month, a16z was aiming for a $2 billion cryptocurrency financing. It had already liquidated some of its crypto assets before most cryptocurrencies crashed in value in previous weeks.
The players at Andreessen Horowitz
Katie Haun and Chris Dixon will oversee Crypto Fund III, but the business has started building a more solid management staff focused on the crypto space. Anthony Albanese, who came to the company from the NYSE the year before, has been named COO of the unit.
Formerly worked as a senior assistant to President Biden, Tomicah Tillemann is appointed as the company's global head of cryptocurrency policy.
Rachael Horwitz, who left Google following a tenure as Coinbase's initial Vice President of Communications, will also join as an operating associate, heading marketing and communication services for the firm's crypto.
Others joining as advisors include businessman Alex Price and Bill Hinman, previously of the Securities and Exchange Commission. And Brent McIntosh, who currently worked as Under Treasury secretary for Foreign Relations.