CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

Venture capitalist launches $2.2bn crypto fund amid alt-coin slump

By Andrei Chirileasa

14:09, 24 June 2021

world map blockchain financing concept photo

American venture capital firm Andreessen Horowitz, also known as a16z, announced that it has ushered in a whopping $2.2bn worth of limited partner commitments for its third crypto fund.

The value of the new fund is more than four times higher than the firm’s previous fund, which closed in April 2020. This suggests that the venture capitalist believes that investor interest in blockchain technologies remains high despite cryptocurrency prices recently seeing their strongest declines since 2018.

“Despite this momentum, we are still at the very early stages of what is possible. The size of this fund speaks to the size of the opportunity before us: crypto is not only the future of finance but, as with the internet in the early days, is poised to transform all aspects of our lives,” the a16z team wrote in a blog post.

The venture capital firm is confident that innovation will continue to increase in this sector even as asset prices fluctuate.

“We’ve never been more excited about where crypto is headed and we’re going all-in on the talented, visionary founders who are determined to be part of crypto’s next chapter.”

Strong track record in crypto

A16z started investing in crypto assets in 2013 and one of its earliest bets in this sector has brought it impressive returns.

The Menlo Park-based VC firm led Coinbase’s $25m Series A in 2013 and continued to buy in subsequent rounds or from existing investors to become the crypto exchange’s biggest outside investor. A16z’s stake in Coinbase was worth almost $10bn on the first trading day, according to a CNBC report.

BTC/USD

86,628.30 Price
-1.870% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

SOL/USD

204.28 Price
-4.320% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 2.2652

XRP/USD

0.65 Price
-10.000% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01168

DOGE/USD

0.36 Price
-3.470% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.0012872

The firm’s previous two crypto funds, worth a total of $815m, have been invested in over 30 crypto projects, including Uniswap, Polychain Capital and Dfinity (Internet Computer), according to data on the firm's website.

What is your sentiment on COIN?

311.85
Bullish
or
Bearish
Vote to see Traders sentiment!

Expanded team to handle higher project volume

The new fund will invest in crypto networks and the founders and teams building in this space. The firm is interested in all stages, from early seed-stage projects to fully developed later-stage networks.

“This fund allows us to find the next generation of visionary crypto founders and invest in the most exciting areas of crypto.”

To handle the higher volume of transactions and projects, a16z has also expanded its crypto team. It brought on board former Securities and Exchange Commission’s finance director Bill Hinman, a former advisor to President Joe Biden, Tomicah Tillemann, and former US Treasury undersecretary Brent McIntosh.

It also took Silicon Valley veteran Rachael Horwitz as an operating partner leading marketing and communications. Horwitz was Coinbase’s first vice president of communications after leading communications strategies at Twitter, Google and Facebook.

Trade Coinbase Global, Inc. - COIN CFD

1m
5m
15m
30m
1H
4H
1D
1W

Read more: Arrington Capital bets 0m on Algorand blockchain

Related topics

Rate this article

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 660,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading