Andreessen Horowitz, certainly one of Silicon Valley’s most high-profile VC firms that invests in “software program consuming the world,” is reportedly planning or trying into establishing a brand new fund of round $1 billion. According to a report from the FT, this new fund would make strategic investments into digital belongings and crypto or blockchain startups.
Andreessen Horowitz is well-known for being a profitable investor in lots of ventures together with digital aset agency Coinbase which just lately went public.
The VC agency’s new fund would notably be its third that’s targeted on digital foreign money investments. The staff at a16z is trying to safe anyplace between $800 million to $1 billion from varied traders, in keeping with the FT which cited sources acquainted with the matter.
If these plans materialize, then the fund can be among the many largest swimming pools of funding that’s meant for crypto initiatives. It could even be twice the scale of the VC agency’s earlier crypto fund.
Andreessen’s fundraising plans have come as digital asset traders proceed to position bets on new ventures. The dramatic rise in funding exercise has been pushed by an unprecedented crypto bull market that’s led by Bitcoin (BTC) and Ethereum (ETH), whereas many altcoin tasks have additionally matured and are presently performing fairly effectively.
Many crypto VCs seem to have realized appreciable good points from Coinbase, the digital asset agency that went public earlier in April 2021. Coinbase is now valued at almost $60 billion.
These spectacular returns might have motivated extra institutional traders like endowments and foundations to allocate extra funds to the crypto and blockchain area.
Regardless of a scarcity of regulatory readability, many new traders proceed to enter the crypto-assets area. Pantera Capital, which is likely one of the first crypto-related funding firms, intends to amass $600 million so as to set up a brand new blockchain or distributed ledger tech (DLT) fund – which goals to mix investments in non-public corporations and tradable crypto-tokens, the corporate revealed.
Pantera Capital’s most up-to-date enterprise fund managed to amass $175 million again in 2018. It was valued at round 3.8x that determine as of January 2021.
Earlier this yr, outstanding traders equivalent to Sequoia Capital China determined to allocate $225 million to the second crypto fund established by Dragonfly Capital, a transfer that greater than doubled the quantity that Dragonfly secured for its preliminary model a number of years again.
Andreessen Horowitz’s fundraising efforts may be capable of surpass the capital secured by Paradigm, a crypto funding firm launched in 2018 by Fred Ehrsam, Co-Founding father of Coinbase, and Matt Huang, the previous associate at Sequoia Capital.
Paradigm has secured $1 billion in funding from the endowments of Harvard and Yale universities. The corporate makes investments through an open-ended fund construction that has no dedication of returning investor cash by a sure date.
Established in 2009 by Marc Andreessen and Ben Horowitz, a16z is an early backer of Coinbase and American Fintech Ripple.
The VC agency’s stake in Coinbase was valued at $11.2 billion on the value of the digital asset agency’s preliminary trades. Andreessen has offered off almost $120 million in shares after Coinbase launched its IPO, regulatory filings affirm.
Andreessen is now additionally a outstanding DeFi (decentralized finance)) investor. It was additionally a founding member of the Fb-led Libra mission that’s now referred to as Diem.
The VC firm has transformed to a registered funding adviser (as of 2019). This provides the agency much more flexibility with regards to making investments in digital currencies and varied different belongings that enterprise funds is probably not allowed to carry in massive quantities. Andreessen was overseeing $35.8 billion price of regulatory belongings by the tip of 2020, in keeping with filings.