Tuesday, October 4, 2022

Andreessen Horowitz (a16z) Floats New $4.5B Crypto Fund

Andreessen Horowitz (a16z), a United States-based venture capital has doubled its crypto fund from the previous, raising $4.5 billion as announced by the firm. According to a blog post from General Partner, Chris Dixon, the firm is excited to have achieved this great feat amidst the lopsided fall of the crypto ecosystem, adding that despite the obvious market clampdown, the future of the blockchain market is bright. 

In its inaugural crypto fund in 2018, a16z achieved the sum of $300 million, and nearly doubled that figure after two years, to have pulled a total of $515 million. 

The firm in its 2021 crypto fundraise, realized the sum of $2.2 billion as it doubled down on its bet in the Web3.0 space at the time. With the current $4.5 billion Fund, a16z has now committed a total of $7.6 billion to the crypto industry. The company seems to always be intentional about doubling its cryptocurrency funding every other time.

The new move has caused a shock wave in the crypto ecosystem, considering the heavy downturn that the blockchain market is currently experiencing.

The Terra and its associated tokens LUNA and UST contributed largely to the high volatility that the cryptocurrency market has witnessed recently. Ridding numerous investors of their investment and confidence in the crypto ecosystem.

Andreessen Horowitz is however motivated by the technological transformation and advancement that the world at large has witnessed with computing, facilitating the expansion of the internet.

The firm believes that “blockchains will power the next major computing cycle”, gaining remarkable relevance across the world. This has spurred the firm to have ventured into its recent fundraising, which has amassed billions in dollars, despite prevailing virtual assets price volatility.

The firm, as always will be using the achieved funds to finance web3 companies and initiatives that are in their start-up phase. A16z will be setting aside the sum of $1.5 billion for “seed investments” and approximately $3 billion to “venture investments.”

Commenting on the fundraise in an interview on CNBC, Arianna Simpson, general partner at a16z said when market prices are at their barest minimum is when people gear their attention towards “building technology” rather than “getting distracted by short-term price activity.”

It is interesting to watch the events that have unfolded around Bitcoin (BTC) and its contemporary virtual assets recently. While some remain passive, others have displayed the highest sense of optimism for the blockchain ecosystem.

Israel Love
Israel Love is a passionate writer that enjoys educating and inspiring people through his writing. This passion fuels the desire to simplify the complexities in the blockchain ecosystem, by providing viable information about the crypto space in such a way that makes it easy for anyone to understand. Israel love also has interests in Human Resource Management as he is a trained expert in HR.

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