Andreessen Horowitz Doubles Down on Crypto Investments With New $515M Fund


Andreessen Horowitz’s (a16z) second crypto fund reveals the enterprise capital agency is concentrating on particular areas to spend money on the cryptocurrency house.

The corporate mentioned Thursday it had raised a complete of $515 million – greater than the authentic $450 million goal – for a second fund known as “Crypto Fund II,” devoted to cryptocurrency and blockchain tasks. It is also greater than the $300 million raised for the VC’s first crypto fund, which launched again in the summertime of 2018.

Within the weblog put up saying the brand new fund, a16z says it’s trying into tasks touching next-generation funds, decentralized finance (DeFi), new monetization fashions and Web3 (the idea of a decentralized web).

On DeFi, the place complete worth handed the billion-dollar milestone earlier this 12 months, a16z mentioned it noticed excessive potential within the composability of belongings. “DeFi opens the elements of finance to the identical recombination and experimentation that makes open-source software program so highly effective,” it mentioned.

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This marks a distinction to a16z’s first crypto fund. In its preliminary funding thesis, the VC talked about a handful of what it noticed as fascinating use circumstances, together with stablecoins, monetary inclusion and the tokenization of real-world belongings.

Nevertheless, it included the caveat that “we’re nonetheless early within the crypto motion. The infrastructure must be improved and the purposes are troublesome for non-early adopters to make use of. Many crypto purposes nonetheless get dismissed as toys.”

Thursday’s weblog put up suggests a16z now considers the business might have reached important mass.


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